Bernanke: links between financial markets and economy need to be better understood

WASHINGTON – Federal Reserve Chairman Ben Bernanke on Thursday said the global financial crisis highlights the need for economists to deepen their understanding of how events on Wall Street can affect the broader economy. "The rationale for such research has certainly been underscored by the financial crisis that began in August 2007 and the powerful adverse effects of the crisis on economic activity around the globe," Bernanke said in prepared remarks to a Fed conference. Bernanke didn’t talk about current economic conditions, or offer clues as to whether the central bank would announce any additional steps to shore up the economy at its meeting later this month. The existing body…

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