Fed's Greenspan on economic flexibility

In the speech 'Economic flexibility' given on 27 September Alan Greenspan of the Federal Reserve said asset bubbles fuelled by "market exuberance" invariably burst and policy-makers cannot safely pierce them.

"History cautions that extended periods of low concern about credit risk have invariably been followed by reversal, with an attendant fall in the prices of risky assets," he told an economics conference in Chicago via satellite.

"Because it is difficult to suppress growing market exuberance

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