Alan Greenspan, The Confidence Strategy
Language
en
Article de revue
This item was published in
Revista de economia politica/Brazilian journal of political economy. 2006-11, vol. 26, n° 4, p. 502-518
Centro de Economia Política
English Abstract
To evaluate the Greenspan era, we nevertheless need to address three questions: Is his success due to talent or just luck? Does he have a system of monetary policy or is he himself the system? What will be his legacy? ...Read more >
To evaluate the Greenspan era, we nevertheless need to address three questions: Is his success due to talent or just luck? Does he have a system of monetary policy or is he himself the system? What will be his legacy? Greenspan was certainly lucky, but he was also clairvoyant. Above all, he has developed a profoundly original monetary policy. His confidence strategy is clearly opposed to the credibility strategy developed in central banks and the academic milieu after 1980, but also inflation targeting, which today constitutes the mainstream monetary policy regime. The question of his legacy seems more nuanced. However, Greenspan will remain 'for a considerable period of time' a highly heterodox and original central banker. His political vision, his perception of an uncertain world, his pragmatism and his openness form the structure of a powerful alternative system, the confidence strategy, which will leave its mark on the history of monetary policy.Read less <
English Keywords
fedspeak
uncertainty
Taylor rule
Monetary policy
credibility
confidence
Origin
Hal imported