Greenspan: The Fed can’t solve every problem. The Fed can’t solve any problem, but it sure can create them. But wait, it gets better.
“The real problem has got nothing to do with monetary policy—although I grant you it’s a crucial issue short term—it’s fiscal policy,”
Fiscal policy is what you spend, monetary policy is how much you have to spend. And since you can’t spend what the Federal Reserve hasn’t given you it seems clear that Greenspan is as wrong about this as he was about creating the housing bubble.
