The mess Alan Greenspan leaves behind

US Federal Reserve Chairman Alan Greenspan is set to retire at the end of this month. Economist Stefan Karlsson argues that the 'Maestro' has in fact caused the current imbalances by inflating the US money supply - and in doing so has betrayed the economic principles he once supported.

With Federal Reserve Chairman Alan Greenspan set to retire next month after more than 18 years on the job, it seems appropriate to summarize his performance. Greenspan has been the single most powerful individual in the world in the economic sphere.

By merely changing his choice of words between different speeches he has been able to rattle the markets. When he merely removes or add words like 'measured' or 'accommodative' somewhere in his speech, the markets either rally or panic. And through his words and his actions he has had a profound effect on the US Economy and the world economy as a whole.

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