Quotes From Chariman Alan

Here are some quotes from Greenspan’s testimony today.
On the yield curve:

That used to be one of the, I guess, most accurate measures we used to have to indicate when a recession was about to occur and when a recovery was about to occur.
It’s lost its capability of doing so in recent years. The markets have become far more complex and the simple relationships that that yield curve slope indicated no longer work.

On low long-term bond yields:

Disinflationary pressures, the excess savings pressures, have more than offset the expectational concerns that rising supplies of U.S. Treasury debt have out there. I think that’s going to change.

On energy prices:

We have been able to absorb that to a large extent because
we have an extraordinarily more flexible economy than we had back in the mid-1970s.
The fact that the use of energy is much less than it was has enabled us to absorb the energy shock with nowhere near the type of consequences that we confronted in the earlier period.

Posted by Eddy Elfenbein on November 3rd, 2005 at 2:41 pm

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