Henry Paulson Quotes

To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.

In Asia, a lot of successful economies that had been living on their own saving, decided to open up their financial markets to international capital in the early 1990s. So here were countries doing quite well, but they decided they'd borrow a bit more and do even better.

China needs a currency that reflects underlying economic fundamentals.

Of course I've already taken a very modest position on the monetary system, I do take the position that we should just end the Fed.

The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the U.S. dollar should be kept at a reasonable and stable level.

The IMF is set up to deal with liquidity crises.

I don't know anyone else on Wall Street who ever conducted a major currency reform. Or for that matter, who established a government.

Like air traffic, the free movement of capital needs controls.

Funds are fungible .... Capital controls are extraordinarily difficult to implement and enforce.

Monetary policy is like juggling six balls... it is not 'interest rate up, interest rate down.' There is the exchange rate, there are long term yields, there are short term yields, there is credit growth.

Starting in late 2007, faced with acute financial market distress, the Federal Reserve created programs to keep credit flowing to households and businesses. The loans extended under those programs helped stabilize the financial system.

You could see how money is different all of a sudden in Italy when they had the lire and now they have the euro. So they, in a revolutionary way, have gone from bad money to good money comparatively. But what about the rest of the world?

There is clear empirical evidence that the response of EME financial markets to different shocks, including changes in U.S. interest rates, depends importantly on the state of economic fundamentals in the EMEs themselves.

The main long-run contribution monetary policy can make is to provide a stable macroeconomic and financial environment.

By the beginning of the 20th century, the debate about monetary policy and the nation's financial system had been going on for over a century. Increasingly, the shortcomings of the existing system were causing too much harm to ignore.

Leave the euro? Surely yes.

The most important thing that most countries around the world believe in is letting the markets determine the currency.

Central banking often comes across as obscure and complicated, and we try to help the public understand what we do.

The best way that a central bank can support growth on a durable basis is to ensure inflation is low, stable - there is financial stability - and that is the role that the central bank plays.

Rupee fluctuation is not so significant compared with the other currencies. Fluctuations in currencies has been fairly steady. As the finance minister often says, fluctuation is the new normal.

If you think about it: a big bank in any country, what is it? Really, as an investment, it's a warrant on economy.

I felt that the Fed had always been the agency that picked up the pieces when there was a financial crisis, and it was invented to do exactly that.

What is important for a central banker is that you have to convey that you know what you are doing.

Beijing is trying to split the baby between simultaneously liberalizing the economy and maintaining economic stability, but those two factors are increasingly mutually exclusive.

Remonetisation has happened at a fast pace, and that was part of the plan that, subsequent to the withdrawal of the specified bank notes, our production plans and supply processes would ensure that the remonetisation happened as quickly as possible.