This is what Alan Greenspan, 81 and free to talk after decades as Federal Reserve Chairman says: global economic forces, not Federal Reserve policy, kept the inflation down.
What are the global economic forces?
- free trade
- cheap labor from China and India
- benefits from IT and Internet
As the free trade and the cost of labor tend to stabilize in the near future, the role Information Technology is growing. We have the solemn task to keep the inflation down.
Thank you Mr. Greenspan
Still Mr. Greenspan's darker prophecies (we will get a double digit inflation, 10,000 today will be worth $6,700 in a couple of years from now) are contradictory.
How come the price of the houses will go down, if we will have an inflation?