In case you thought Greenspan actually understood monetary operation.
He obviously thinks quantitative easing is somehow inflationary per se:
Fed can do no more to cut unemployment: Greenspan
By Doug Palmer
Dec. 13 (Reuters) — The U.S. Federal Reserve has done all it can do to reduce unemployment and needs to worry more about the risk of inflation from the stimulus it poured into the economy, former Fed Chairman Alan Greenspan said on Sunday.
“I think the Fed has done an extraordinary job and it’s done a huge amount (to bolster employment). There’s just so much monetary policy and the central bank can do. And I think they’ve gone to their limits, at this particular stage,” Greenspan said on NBC’s “Meet the Press.”
“You cannot ask a central bank to do more than it is capable of without very dire consequences,” Greenspan continued, saying the United States faced a serious long-term threat of inflation unless the Fed begins to pull back “all the stimulus it put into the economy.”
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