文档介绍：WISDOM IN A NUTSHELL
PRESENTS
INSIDE THE GURU MIND SERIES
The Greenspan Effect
Words That Move the World’s Markets
By
David B. Sicilia and Jeffrey L. Cruikshank
McGraw-Hill, New York, 2000
ISBN 0-07-134919-7 273 pages
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The Greenspan Effect
Page 2
Words that Lift Markets
1. The “Exceptional” Economy
Greenspan defines “exceptional” economy as characterized by strong
growth and low inflation. Soaring prices in the stock market could be
fueled by moderate long-term interest rates and expectations of
investors that profit margins and earnings growth would hold steady or
even increase further, in a relatively stable, low inflation environment.
Greenspan is baffled by an economy operating at high levels and
drawing into employment less-experienced workers can still produce
falling inflation rates. This suggests that the economy is on an
unsustainable track. Unless aggregate demand increases more slowly
and more in line with trends in the supply of labor and productivity,
imbalances will emerge. When considerable momentum behind the
expansion and labor market utilization rates are unusually high, there
is a possibility that additional action might be called for to forestall
excessive credit creation.
2. The “Oasis of Prosperity”
Domestic and foreign interests converge rather than diverge. With
inflation no longer a threat, and with the rest of the world unable to get
their economic houses back into order after months of stagnation,
there is a greater threat of global recession. Greenspan believes that
the United States cannot remain an “oasis of prosperity” unaffected by
a world that