Alan Greenspan
Alan Greenspan
Alan Greenspanis an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position...
NationalityAmerican
ProfessionEconomist
Date of Birth6 March 1926
CityNew York City, NY
CountryUnited States of America
alert asset business caution economy excessive financial greater household lost markets remain signal values
...In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending,
affecting assets balance changes confronted economies exhibit factors households income larger perhaps potential relative responses risen sheets value
As the value of assets and liabilities have risen relative to income, we have been confronted with the potential for our economies to exhibit larger and perhaps more abrupt responses to changes in factors affecting the balance sheets of households and businesses,
demand falling household income increase industrial inventory production products rate rise slowing stable
A slowing in the rate of inventory liquidation will induce a rise in industrial production if demand for those products is stable or is falling only moderately, ... That rise in production will, other things being equal, increase household income and spending.
asset assisted boost businesses earlier economic environment households improved left prices
These changes, assisted by improved prices in asset markets, have left households and businesses better positioned than they were earlier to boost outlays as their wariness about the economic environment abates,
aversion business cautious costs equity financing greater higher household lead lower prices risk spending
Lower equity prices and higher financing costs should damp household and business spending, and greater uncertainty and risk aversion may also lead to more cautious spending behavior,
although condition continue households indicate labor layoffs seem worried
Although layoffs seem to be diminishing, surveys indicate that households continue to be worried about the condition of labor markets,
activity although continue household likely limited past potential sector spending trend
Although household spending should continue to trend up, the potential for significant acceleration in activity in this sector is likely to be more limited than in past cycles,
activity although continue contrast force household last major potential sector spending trend usual
Through most of last year's slowdown, in contrast to the usual pattern, the household sector was a major stabilizing force, ... As a consequence, although household spending should continue to trend up, the potential for significant acceleration in activity in this sector is more limited.
activity business cyclical household likely limited past potential sector
Because there was little retrenchment during the cyclical downturn, the potential for a significant acceleration in activity in the household sector is likely to be more limited than in past business cycles,
affect along although cope factors financial households inflation monetary neutral prepared reasonably remind seem stance transition
Financial markets, along with households and businesses, seem to be reasonably well prepared to cope with a transition to a more neutral stance of monetary policy, ... Although many factors may affect inflation in the short-run, inflation in the long-run, it is important to remind ourselves, is a monetary phenomenon.
good household sector seems
Overall, the household sector seems to be in good shape,
appreciate climate fully households interest meeting rates risk trouble
fully appreciate the risk that some households may have trouble meeting monthly payments as interest rates and the macroeconomic climate change.
good moving pressures reasonably
Inflationary pressures will be reasonably well contained, so long as productivity is moving at a reasonably good clip,
benefits continuing derived distinct existing extent far growth high increase plus potential rates remain support technology total
Indications that the extent of the application of existing technology is still far from complete, plus potential benefits derived from continuing synergies, support a distinct possibility that total productivity growth rates will remain high or even increase further,