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,
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.
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.
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.
debt deficits domestic interest large rates ratio result rising service
Large deficits will result in rising interest rates and an ever-growing ratio of debt service to GDP (gross domestic product),
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.
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.
debate increased issue rates return
I haven't stipulated increased rates of return are a significant issue in this debate.
beginning economy interest pop raise rates reason rise
I don't think we did pop the bubble. We did raise interest rates in 1999, and the reason we did that is that real long-term rates were beginning to rise because the economy was beginning to accelerate,
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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,
gradual slowly test
We have to do it in a cautious, gradual way. ... (We) should go slowly and test the waters.