Alan Greenspan On Impact Of QE2

Recently Alan Greenspan wrote a paper titled “Activism.” (pdf)   While I don’t agree with many of its analyses and conclusions, I am finding it to be an interesting document.

On March 4, CNBC interviewed Greenspan.  I found one response by Greenspan to be especially notable.  The question happens at the 42 second mark:

interviewer:  “…isn’t QE2 some government activism that could be actually hurting the strength of the economy rather than helping it?”

Greenspan:  “I think we’re not going to know the answer to that question until after the fact – because you have to go full-cycle on these types of projects…”


A Special Note concerning our economic situation is found here

SPX at 1298.05 as this post is written