Doug
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Date: Fri, 15 May 1998 17:59:47 EST From: "DICKENS, EDWIN (973)-408-3024" <EDICKENS at mr.drew.edu> Subject: FWD: Re: Alan Greenspan, Leftie... To: Remote Addressee <owner-lbo-talk at lists.panix.com> Message-id: <A29ZXJPPXXAX*/R=DANIEL/R=A1/U=EDICKENS/@MHS> MIME-version: 1.0 Content-type: MULTIPART/MIXED; BOUNDARY="Boundary_(ID_JS0ghmDKUEQ+CAQsWNOJJg)" Delivery-date: Fri, 15 May 1998 18:09:00 EST Posting-date: Fri, 15 May 1998 18:09:00 EST Importance: normal A1-type: MAIL
Greenspan is no lefty just because he may not want to increase the Federal funds rate. He knows when "inflation" becomes a problem, e.g., he was on the Board of Pittson until becoming FRB chair. Given Greenspan's position that productivity growth is greater than current measures show, just because nominal wage growth is inching above CPI inflation for the first time in a generation, why provoke public scrutiny of unprecedently high real interest rates? Greenspan almost certainly wants to keep his "powder dry" (a notion with long pedigree in central-banking circles) so long as the dollar is strong. After all, it was on Greenspan's watch that the dollar almost fell to 80 yen. He is scared shitless that EMU could do that again. Besides, Greenspan has bigger fish to fry: removing the political obstacles to Citigroup and finding a partner for J.P Morgan.