Alan Greenspan

In 1997, Alan Greenspan the US Federal Reserve Chairman raised interest rates 6 times in succession. Then in 1999-2000 he raised it seven times in succession.

In 2003 he reduced it 11 times in succession, so much so now the interest rate is 1% or so.

I don’t get it. I think there is something real strange going on. Is this a consequence of heightened trading activity in the currency markets and the US bond market?

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Posted on February 25, 2004, in Uncategorized. Bookmark the permalink. 4 Comments.

  1. Quite strange indeed!

  2. Strange it might seem…but obviously there’s some BIG agenda =)

  3. No, it is in view of the state of the economy, purchasing power parity and inflation.

    • Don’t quite think so. That’s the spin. I think Greenspan’s just betting that monetary policies will do the trick. Me thinks there is some sort of push and pull among the US and European central banks and their financial markets, which has very little to do with the state of the economy.

      If you have the time and the inclination to put together a solid article backing up your opinion, would be very interested.

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