The British government has just announced that the queen is to bestow on Alan Greenspan, chairman of America's Federal Reserve, an honorary knighthood for his contribution to global economic stability. Knights used merely to have to slay the odd dragon. In comparison, Mr Greenspan's task of preventing another recession, or even deflation, looks trickier. The Federal Reserve is not yet convinced that America's economy is heading for a double-dip recession. At its policy meeting on August 13th, the central bank decided to keep its federal-funds rate unchanged, at a 40-year low of 1.75%. Still, it signalled a readiness to cut rates should the economy look like weakening further.
展开▼
