In March 2012, Federal Reserve chairman Bernanke gave four lectures to undergraduates on the origins and role of the Fed. His texts, charts, and answers to student questions are contained in this slim volume. Bernanke addresses the value of a central bank as an economic stabilizer through its powers as regulator, influencer of interest rates, and lender of last resort. After giving a brief history of the Fed, he describes the financial environment leading up to the 2008 crisis. He talks about how the Fed in concert with the U.S. Treasury and other central banks implemented policies first to dampen the panic, then to strengthen the financial system, and finally to support the economic recovery. He stresses the openness of Fed actions subsequent to 2008 and their consistency with longstanding practices. Bernanke is careful in his wording and presents no revelations; the lectures have been accessible over the Internet. VERDICT This important book deserves to be read widely both because Bernanke admirably explains the Fed and its actions and because his authorship provides a window into his thinking as one of the world's most powerful financial figures. Former Fed governor Alan S. Blinder (economics, Princeton Univ.) also examines the crisis but with sharper criticism in After the Music Stopped. --Library Journal
