In the summer of 2005, Alan Greenspan was faced with a mystery. Despite the backdrop of rising short-term rates, economic strength, and inflationary pressures, long-term interest rates have not risen at all. If long-term rates remained low, economic activity is likely to strengthen and create additional inflationary pressures. If some of the new powers were depressing long-term interest rates, but its removal may cause confusion sharp increase in interest rates. Anyway, Greenspan would have to get to the bottom of this perplexing. "Hide
by Francis Warnock Source: Darden School of Business 14 pages. Publication Date: March 16, 2006. Prod. #: UV0997-PDF-ENG
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