Newspaper article THE JOURNAL RECORD

Greenspan Gets Credit in Europe for `Miracle'

Newspaper article THE JOURNAL RECORD

Greenspan Gets Credit in Europe for `Miracle'

Article excerpt

PARIS -- On the eve of the Republican Party convention, admiring European analysts are hailing what they call America's economic "miracle," but several of them insist the main credit should go to Federal Reserve Chairman Alan Greenspan, not to President Clinton.

Greenspan is being widely praised in European political and business circles for, in the words of the London Times, "consistently astonishing" the rest of the world since 1992 by presiding over an economy that has maintained expansion and high employment without inflation.

The result, said the newspaper, was an "American miracle ...comparable to the golden age (of postwar growth) 30 years ago."

Paris-based German economist Theo Arnheim discounted deregulation, lower taxation and retraining of the work force as decisive factors in America's recent upsurge.

"All such developments are significant in the longer term," he explained.

"But in the relatively short period in which the U.S. economy has dramatically outpaced its rivals, the essential credit must go to the judgment and competence shown by Greenspan in creating the necessary conditions for growth by encouraging demand."

To such transatlantic experts as one-time French economics minister Alain Madelin, the Fed chairman's performance has been all the more sparkling because it contrasts sharply with Europe's inability to shake off the global slump of the early `90s recession.

He noted that the United States is the only major industrial nation enjoying economic growth and stability comparable to the great postwar surge of the 1950s and 1960s.

"We should have been studying U.S. policies much more closely," the French centrist politician said.

In particular, he declared, Greenspan has demonstrated skill in adjusting interest rates. Similar aptitude has not been displayed by many, if any, of his European counterparts, according to Madelin. …

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