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
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,
create creates economy economy-and-economics enhance growth higher modest quantities rate serious standards
in modest quantities does enhance the rate of growth of the economy and does create higher standards of living, but in excess, creates very serious problems.
balance credit demands expansion federal forces funds gradually held interest last level market otherwise past raising rate rates required reserve rose
The Federal Reserve has responded to the balance of market forces by gradually raising the federal funds rate over the past year, ... Certainly, to have done otherwise -- to have held the federal funds rate at last year's level even as credit demands and market interest rates rose -- would have required an inappropriately inflationary expansion of liquidity.
consumer continue demand equity fixed fuel housing levels low mortgage rates reasonably remain spending strong support thus
Fixed mortgage rates remain at historically low levels and thus should continue to fuel reasonably strong housing demand and, through equity extraction, to support consumer spending as well,
financial highly imparting interest operation potential rate requires risk
Because it is a highly leveraged operation and one which requires very sophisticated hedging of interest rate risk, it's imparting a significant potential systemic risk to the American financial system,
deficits future interest large rates result rising
is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years.
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.
advance closer continued demand economy favorable given growing immediate impressive line moving outcome potential prosperity rate threat
Demand may be moving closer into line with the rate of advance in the economy's potential, given our continued impressive productivity growth, ... Should this favorable outcome prevail, the immediate threat to our prosperity from growing imbalances in our economy would abate.
consumer core decline despite energy exchange growth higher measures modest prices rate recent registered slower somewhat
Despite the combination of somewhat slower growth of productivity in recent quarters, higher energy prices, and a decline in the exchange rate for the dollar, core measures of consumer prices have registered only modest increases,
account adequate america changes current deficit degree economic exchange housing interest large maintain rates rather
If we can maintain an adequate degree of flexibility, some of America 's economic imbalances, most notably the large current account deficit and the housing boom, can be rectified by adjustments in prices, interest rates, and exchange rates rather than through more-wrenching changes in output, incomes, and employment.
aware deficit fact fully maintain possible priority rate recommend start strongly tax
I am fully aware of the fact that it may not be possible to keep the tax rate down and still maintain some semblance of deficit control, ... But ... I would strongly recommend that the priority of evaluations start with the expenditure side: what can be constrained, what can be reduced.
continue dollar exchange foreigners obviously quantities rate remain seek
So long as foreigners continue to seek ever-increasing quantities of dollar investments in their portfolios, as they obviously have been, the exchange rate for the dollar will remain firm,
debate increased issue rates return
I haven't stipulated increased rates of return are a significant issue in this debate.
creates exchange markets moving prevent rates realize sorts work
I realize what that does to competitiveness, but that's the way markets work efficiently. In other words, to prevent the exchange rates from moving creates all sorts of distortions.