This week, former US Federal Reserve chief Ben Bernanke gave his first ever speech in Japan to a group of over 100 institutional investors, covering his thoughts on deflation, global monetary policy, and job creation.
Hedge fund manager John Paulson, founder of Paulson & Co., also spoke at the event — The SkyBridge Global Symposium Tokyo sponsored by investment firm SkyBridge Capital.
Bernanke told attendees that he believes Central Banks around the world have the power to fight our current #1 economic fear — deflation.
He told attendees that Japan’s ‘Abenomics’ policy is working, and that likes that the Bank of Japan is generating more inflation than the European Central Bank.
ECB head Mario Draghi, he added, should continue to expand the ECB’s balance sheet.
As for U.S. policy, Bernanke thinks the Fed still needs to see more job creation before completely altering its policy.
According to a source that was at the speech Bernanke sounded positive about global prospects in a general sense. The former Fed Chair doesn’t believe in secular stagnation, and that industries like biotech, tech, and energy are poised to create more jobs to the global economy than we expect.