Greenspan: Deficits haven't hurt economy

In remarks to a monetary conference sponsored by the Cato Institute on Thursday 19 November, Fed Chairman Alan Greenspan said "creeping protectionism" may interfere with US attempts to reduce its huge trade deficit. Without naming any specific examples, such as steel tariffs, he said "The costs of any new such protectionist initiatives, in the context of wide current account imbalances, could significantly erode the flexibility of the global economy."

Source: Associated Press

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