Understanding the Greenspan Years

In the spirit of a throwback Thursday, [oops, too late] here is a reflection about something that ran in FORBES magazine back in October 1987.

"He [chairman AG] has argued in the recent past that import prices could climb almost 10 percent a year without generating dangerous inflationary pressure....Chances are that he will be willing to let the economy grow faster than many observers expect."

The article also said that Greenspan expected the U.S. dollar to fall about 3 percent against the yen the following year.

On October 19th, the first Monday after the appearance of this article, the stock market crashed. Cause and effect? Probably not.

Synchronicity? Definitely. And Greenspan never gave another media interview throughout the remainder of his tenure as chairman.

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