Bernanke urges soft hand in globalization
Argues for work retraining programs and other ways to ease pain caused by economic shifts; no comments on interest rates or inflation.
NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke urged policymakers and the nation at large Friday to embrace the global economy and help those hurt by shifting economic patterns, saying disruptions caused by lost jobs or declining profits in some industries would be offset by stronger overall growth.
Speaking at the Federal Reserve bank of Kansas City's Economic Symposium in Jackson Hole, Wyo., Bernanke avoided any specific talk on interest rates, inflation or the pace of economic growth, instead focusing on the long term benefits of globalization.
"The potential benefits of increased global economic integration are large indeed," said Bernanke in prepared remarks. But "social and political opposition to rapid economic integration has also emerged."
He urged expanding work retraining programs and other social programs to ease the disruptions caused by a changing global economic environment.
"The challenge for policy-makers is to ensure that the benefits of global economic integration are sufficiently widely shared (so) a consensus for welfare-enhancing change can be obtained," he said.