<-OT->Commentary: Deciphering "Greenspan-speak"-> Avoid clarity at all cost
Sig:
Here have a go at it if you have nothing particularly interesting to do this morning.<vbg>
I.
Greenspan: "I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant."
II.
Greenspan: "I spend a substantial amount of my time endeavoring to fend off questions, and I worry terribly that I might end up being too clear."
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IRVING LEVINE, COMMENTATOR:
'When Fed Chairman Alan Greenspan speaks, people listen, but they don't necessarily understand him. Clarity of speech is not Greenspan's strong suit.
As Greenspan himself once explained, "I spend a substantial amount of my time endeavoring to fend off questions, and I worry terribly that I might end up being too clear." Greenspan deliberately avoids clarity, apparently worrying that letting people in on Fed thinking might somehow destabilize markets. But last month, there was a notable change.
Prior to raising interest rates, Greenspan made it pretty obvious in speeches that the Fed would indeed be raising rates. The stock market digested the advance knowledge without disruption. That should have persuaded the Fed that markets operate most efficiently when investors have all the facts. But last week in congressional testimony, Greenspan reverted to his customary ambiguity. That is regrettable. Still, Greenspan's manner of speaking does provide one benefit. That is, it produces memorable phrases such as this Greenspan comment. "I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant." That kind of "Greenspanspeak" is something we wouldn't want to lose. I am Irving R. Levine.' (Courtesy:NBR) |
