June 23, 2003

What does Volcker think? Sean Corrigan of the Mises Economics Blog posts the following important remarks from Paul Volcker:

Hitting the professional Bloomberg wires were the following quotes from Greenspan's predecessor, the still-influential Paul Volcker, speaking at the LSE ... "We have a record current-account deficit and we're living off the munificence of strangers. The only reason we're getting enough to fund the deficit is that Asian central banks are vigorously buying dollars."

"We have an amount of stimulus beyond anything I've heard of in history," he also marvelled, before giving his verdict on the current financial market obsession:

"If I were setting odds on deflation in the U.S. the probability wouldn't reach 0.1 percent. I see no prospect of real deflation like we had in the U.S. and other countries in the 1930s."

Posted by Greg Ransom