Outlook: Greenspan should have done more
Wednesday 30 September 1998
Then there was the language of the cut. This was nothing to do with wanting to ease the plight of the world economy, you understand. Rather the intention was "to cushion the effects on prospective economic growth in the US of increasing weakness in foreign economies and of less accommodative financial conditions domestically".
The difference is an important one, for what Alan Greenspan is doing is adding his voice to the already strong chorus of central bankers saying that monetary policy will be determined only by domestic considerations. What is going on here, in essence, is a "stuff the rest of the world" approach. Hans Tietmeyer, president of the Bundesbank, has already said it. And so has Wim Duisenberg, president of the European Central Bank. The markets hoped for more from Mr Greenspan.
The Federal Reserve chairman has undoubtedly moved too cautiously. Central bankers just don't seem to get it, do they? It may seem reasonable enough for Mr Greenspan to look to his own economy first and foremost, but it is not just altruism that requires steep rate cuts from the US right now. In the months ahead, rates will have to come down a lot further to head off the threat of stagnation, not just to the world economy, but to the US too.
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 3 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Perez Hilton apologises for publishing Jennifer Lawrence naked 4Chan photos
Jennifer Lawrence 'nude photo hacker' claims there are hundreds more celebrity images to come
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£35000 - £38000 per annum + benefits: Ashdown Group: Executive Assistant/Event...
£30000 - £32000 per annum: Ashdown Group: HR Generalist (standalone) - Tunbrid...
£600 - £800 per day: Harrington Starr: Derivatives Risk Commodities Business A...
£600 - £800 per day: Harrington Starr: Power & Gas Business Analyst/Subject Ma...