Federal Reserve Chairman Alan Greenspan can take only partial credit for the longest economic expansion on record in the 1990s, Morgan Stanley's chief economist Stephen Roach wrote in Foreign Policy, a magazine published by the Carnegie Endowment for International Peace. \n"Greenspan's leadership in monetary policy undoubtedly played an important role in fostering the conditions that allowed the US economy to surge in the 1990s," Roach wrote in the magazine's January-February issue. \n"A judicious focus on fiscal discipline" by former US President Bill Clinton's administration also helped the economy expand from March 1991 to March 2001, the longest boom in history, Roach wrote. "No one should believe that the economic boom of the 1990s was the work of just one man or just one monetary policy," he said. \nRoach said Greenspan's predecessor, Paul Volcker, gets most of the credit for bringing inflation down during his eight years at the Fed starting in 1979, though Greenspan brought it down further. \nRoach also said Greenspan's rapid interest rate cuts, which drove the overnight lending rate down 5.5 percentage points from January 2001 to June 2003, helped cushion the bursting of the stock market bubble. Still, low interest rates may have fueled "the biggest bubble of all: Residential property," with inflation in home prices running at an annual 8.8 percent, Roach said. \nRoach said Greenspan can be credited for spotting a rise in productivity, or output per hour of work, before most other economists. The 78-year-old Fed chairman has kept monetary policy independent from politics, Roach said. \nThe dollar has been stable during Greenspan's 17 years as Fed chairman, "a noteworthy accomplishment," Roach said, although the large US deficit in trade is likely to be corrected through a falling currency. \nGreenspan's non-renewable term expires on the last day of January 2006. \n"Greenspan will be a tough act to follow," Roach said. \n"But his success was as much an outgrowth of history as it was a reflection of any one person."
SECURITY CONCERNS: The Telecom Technology Center ran black-box tests for the Executive Yuan on devices and software from Chinese, US and South Korean firms Network devices from several Chinese manufacturers are insecure and allow personal information to be leaked, testing commissioned by the Executive Yuan has shown. A variety of devices and software, including apps, from Chinese, US and South Korean manufacturers that are used by government agencies at the central and local level were subjected to black-box testing — in which the functionality of an application is examined without knowing about its internal structure, an information-security official said yesterday on condition of anonymity. The Telecom Technology Center conducted the tests, which simulated cyberattacks, to determine their resilience to the attacks, the official said. The center
Americans awoke yesterday to charred and glass-strewn streets in dozens of cities after another night of unrest fueled by rage over the mistreatment of African Americans at the hands of police, who responded to the violence with tear gas and rubber bullets. Tens of thousands marched peacefully through streets to protest the death of George Floyd, a black man who died on Monday last week after a white Minneapolis police officer pressed his knee on his neck until he stopped breathing. However, many demonstrations sank into chaos as night fell: Vehicles and businesses were torched. The words “I can’t breathe” were
The nation marked its 49th day with no new domestic COVID-19 cases yesterday, and there were no new imported cases, but that does not mean the Central Epidemic Command Center (CECC) can relax its attention, Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said yesterday in Tainan as he and a team of health officials wrapped up a weekend visit to the city. The visit is part of the center’s efforts to promote domestic travel under the “new disease prevention lifestyle.” Among the 442 confirmed cases, 423 have been released from isolation and 12 people remain hospitalized, Chen
EXTRA INVITATIONS: Russia, Australia, South Korea and India would be asked to a later summit dedicated to countering China, Donald Trump said US President Donald Trump has been forced to cancel a planned face-to-face summit of G7 leaders this month and now wants to host an expanded meeting in September dedicated to countering China to which Russian President Vladimir Putin would be invited. Trump on Saturday announced that he had canceled the June meeting, which he had billed as a symbol of the US “transitioning back to greatness,” after German Chancellor Angela Merkel told him in a telephone call that she saw the summit in Washington as a health risk. Hundreds of security staff, journalists and officials also attend the two-day summits. Reports suggest