Alan Greenspan's Testimony

Paper Summary:

This research paper is about the Congressional testimony of Federal Reserve Chairman Alan Greenspan on July 16, 2001. The paper mainly discusses the importance of the rate of interest to the entire economy and to the market, respectively. Although, in his testimony, Mr. Greenspan left the rates unchanged, there is discussion of what interest the financial market players had in having a new cut rate.

From the Paper:

"The Congressional testimony of Federal Reserve Chairman Alan Greenspan on July 16, 2002 proves how consequential interest rates are. In fact, control of interest rates is Federal Reserve's main device for encouraging economic expansion and deterring the slumps in the economy. In this instance, despite the stock and bond market players? disappointment at the interest rates remaining unchanged in the short-run, the Chairman decided that rates would not be cut in the then near future even though it may have helped markets to cut rates. It should be noted, however, that Mr. Greenspan was basing his decision to not cut rates at the time for the benefit of the entire economy ("Wall Street Journal")."

More papers on Alan Greenspan's Testimony:

• Essay # 86297 : "Monetary Policy-The State of the Economy"
• Essay # 55189 : " Alan Greenspan"

APA Citation:

MLA Citation: