by Mark Thoma, University of Oregon (Department of Economics)

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Greenspan: Equity Prices are a Key to Recovery

Posted on June 25, 2009

Maybe there was aGreenspan put after all?:Inflation - the real threat to sustained recovery, by Alan Greenspan, Commentary, Financial Times: The rise in global stock prices from early March to mid-June is arguably the primary cause of the surprising positive turn in the economic environment. The $12,000bn of newly created corporate equity value has added significantly to the capital buffer that supports the debt issued by financial and non-financial companies. Corporate debt, as a consequence, has been upgraded and yields have fallen. Previously capital-strapped companies have been able to rai...

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economy , greenspan , inflation