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
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.
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,
advances almost appear driven gained gains growth knowledge largely level rate since states technology united
...most of the gains in the level and the growth rate of productivity in the United States since 1995 appear to be structural, largely driven by advances in technology and its application -- irreversible in the sense that knowledge once gained is almost never lost,
amount cuts economy economy-and-economics rate required
the amount of rate cuts required to revive the economy will not be deep.
alert bring demand growth interest line market open potential rates remained risen robust signs spending stay
To date, interest-sensitive spending has remained robust and the FOMC (Federal Open Market Committee) will have to stay alert for signs that real interest rates have not yet risen enough to bring the growth of demand into line with that of potential supply, even should the acceleration in productivity continue,
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.
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.
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.
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,
achieved benefits cuts dividends double elevate increase interest marginal powerful process rates reasons rise suspect taxation
There are powerful reasons to suspect that the elimination of the double taxation of dividends and cuts in marginal tax rates will elevate long-term productivity, ... If, however, in the process we get a significant increase in deficits, which induce a rise in long-term interest rates, that will be a significant undercutting of the benefits achieved by tax cuts.
associated businesses costs employment europe expanding face higher hiring investment japan less potential rates return risks workers
The rates of return on investment in the same new technologies are correspondingly less in Europe and Japan because businesses there face higher costs of displacing workers than we do, ... Moreover, because our costs of dismissing workers are lower, the potential costs of hiring and the risks associated with expanding employment are less.
appears business cannot expectation experience growth increase possibly rate wall
The rate of growth of productivity cannot increase indefinitely, ... While there appears to be considerable expectation in the business community, and possibly Wall Street, that the productivity acceleration has not yet peaked, experience advises caution.
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.