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To: GST who wrote (134174)	11/6/2001 8:32:48 AM
From: Oeconomicus	Respond to of 164684

Greenspan Gets Friedman Seal of Approval Tuesday November 6 3:07 AM ET ROME (Reuters) - Influential U.S. economist Milton Friedman believes Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) has made all the right monetary policy decisions since the Sept. 11 attacks and says the U.S. economy could even rebound soon. Countering recent criticism of the Fed chairman, who has cut interest rates aggressively since the attacks and is poised to do so again on Tuesday, Nobel Prize winner Friedman said Greenspan had done the right thing. ``What he has done is without precedent (and) he has acted with anticipation,'' he told Il Sole 24 Ore newspaper in an interview published on Tuesday. ``He could even achieve his goal of a soft landing... The elements for a rebound are already there and maybe even in the second quarter of next year we will see the results,'' he said. Friedman said the key to avoiding recession was pumping more dollars into circulation, which the Fed had done by buying bonds and other market operations. He estimated there had been a 10 percent increase in money supply since the start of the year. ``It's true that the unemployment rate could rise to 6.0-6.5 percent, but we shouldn't forget that unemployment is a lagging not a leading indicator of negative conditions. I don't think we'll hit 8.0 percent as in other recessions,'' he said.