The Wisdom Of Alan Greenspan

As the nation goes to the polls, it may be instructive to listen to the most powerful nonelected official America has--the chairman of the Federal Reserve, Alan Greenspan. In a recent speech at the libertarian Cato Institute in Washington, Greenspan reminded everyone that most of the prosperity of recent years is due to two things--a "once or twice-in-a-century surge in technology" and a political consensus that transformed a huge budget deficit into a surplus. This surplus, in turn, "helped fill the pool of saving that has fed productivity-enhancing and cost-reducing capital formation." The Fed recognized these dramatic developments and altered U.S. monetary policy accordingly.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.