Abstract
Why did Alan Greenspan raise interest rates? Because he could. Because two of the more independent members of his Board, the pro-growth conservative Lawrence Lindsey and the moderate Janet Yellen, have departed. Because he has been under pressure from banks and bond traders for two years; why not throw them a bone? Because he knows the Clinton Administration will say and do nothing in protest. And, especially, because he can get away with it.
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© 2006 James K. Galbraith
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Galbraith, J.K. (2006). Greenspan’s Whim. In: Unbearable Cost. Palgrave Macmillan, London. https://doi.org/10.1057/9780230236721_35
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DOI: https://doi.org/10.1057/9780230236721_35
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-01901-0
Online ISBN: 978-0-230-23672-1
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