the famous "irrational exuberance" speech of Greenspan
Found it:
federalreserve.gov
Remarks by Chairman Alan Greenspan
At the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research, Washington, D.C.
December 5, 1996
The Challenge of Central Banking in a Democratic Society
(...)
But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? And how do we factor that assessment into monetary policy? We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs, and price stability. Indeed, the sharp stock market break of 1987 had few negative consequences for the economy. But we should not underestimate or become complacent about the complexity of the interactions of asset markets and the economy. Thus, evaluating shifts in balance sheets generally, and in asset prices particularly, must be an integral part of the development of monetary policy.
(...)
Dec. 5, '96 July 22, '02
^DJI 6,437.10 7,784.58
^IXIC 1,300.12 1,282.65
^SPX 744.38 819.85
^TYX 6.49% 5.29%
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