Greenspan on U.S. foreign balance

[joanna bujes]

At 03:15 PM 03/13/2002 -0500, you wrote:
>This is one of those rare instances where somebody important worries
>about this in public. The orthodox thing for AG to do would be to
>tighten policy and restrain U.S. growth rates to reduce imports.
>Clearly he's not eager to do this. So how will this be resolved? With
>a dollar crisis and capital flight, leading to an externally imposed
>austerity regime? A big question as the U.S. economy recovers...

Isn't inflation/devalutation the classic way out of debt?

Joanna