>Because G. believes in the New Economy, not because he is indulgent????
Word was that back in '96, I think, Greenspan started getting seriously worried about deflation, and resisted calls from his colleagues and from Wall Street hawks to tighten. He turned out to be right; if he'd tightened in '96, the Asian crisis would probably have been a real hum-dinger. I wonder sometimes if the New Economy rhetoric isn't a cover for deflation anxiety - or if maybe one is just a version of the other. If he's right about productivity, then there's a great risk of either excess capacity (e.g. the late 19th century) or underconsumption (e.g. the late 1920s), either of which could have severe deflationary implications.
Doug