Despite his rather appealing personal humility，the tributes lavished upon Alan Greenspan，the chairman of the Federal Reserve，become more exuberant by the day．Ahead of his retirement on January 3 1 st，he has been widely and extravagantly acclaimed by economic commentators，politicians and investors．After all，during much of his 181／2 years in office America enjoyed rapid growth with low inflation，and he successfully steered the economy around a series of financial hazards．In his final days of glory，it may therefore seem churlish to question his record．However，Mr Greenspan’s departure could well mark a high point for America’s economy，with a period of sluggish growth ahead．This is not so much because he is leavin9，but because of what he is leaving behind：the biggest economic imbalances in American history．
One should not exaggerate Mr Greenspan’s influence both good and bad over the economy． Like all central bankers he is constrained by huge uncertainties about how the economy works，and by the limits of what monetary policy can do(it can affect inflation，but it cannot increase the long-term rate of growth)．He controls only short term interest rates，not bond yields，taxes or regulation．Yet for all these constraints，Mr Greenspan has long been the world’s most important economic policy maker and during an exceptional period when globalisation and information technology have been transforming the world economy．
So far as the American economy is concerned，however，the Fed’s policies of the past decade Iook like having painful long-term costs．It is true that the economy has shown amazing resilience in the face of the bursting in 2000 of the biggest stockmarket bubble in history，of terrorist attacks and of a tripling of oil prices．Mr Greenspan’s admirers attribute this to the Fed’s enhanced credibility under his charge． Others point to flexible wages and prices，rapid immigration，a sounder banking system and globalisation as factors that have made the economy more resilient to shocks．
The economy’S greater flexibility may indeed provide a shock-absorber．A spurt in productivity has also boosted growth．But the main reason why America’s growth has remained strong in recent years has been a massive monetary stimulus．The Fed held real interest rates negative for several years，and even today real rates remain low．By borrowing against capital gains on their homes，households have been able to consume more than they earn．Robust consumer spending has boosted GDP growth，but at the cost of a negative personal saving rate，a growing burden of household debt and a huge current-account deficit．kaoshida.[424 words]
1．Mr Greenspan was extravagantly admired since______．
A．his departure means a high point for America’s economy
B．he served as the chairman of the Federal Reserve for long
C．he helped promote the long prosperity of American economy
D．there were a series of financial hazards ahead of him
2．The economic growth rate of America will slow down because______．
A．Mr Greenspan has left his office
B．the economy he left behind was unbalanced
C．the growth rate tends to drop after the high point
D．America has had its rapid growth for so many years
3．It is TRUE that______．
A．Mr Greenspan’s influence has been over exaggerated
B．Mr Greenspan has been acclaimed too extravagantly
C．Mr Greenspan has not been acclaimed too widely
D．Mr Greenspan has no more good influence than bad one
4．It is reasonable to attribute to Mr Greenspan’s endeavor．
A．a(chǎn) sounder banking system
B．the economy’s greater flexibility
C．the bursting of the biggest stockmarket bubble
D．the rapid American economic recovery in troubled periods
5．According to the text，______chiefly accounts for America’s strong growth in recent years．
A．Mr Greenspan’s monetary stimulus
B．Mr Greenspan’s overwhelming influence
C．a(chǎn) huge current-account deficit
D．the rapid development of information technology
One should not exaggerate Mr Greenspan’s influence both good and bad over the economy． Like all central bankers he is constrained by huge uncertainties about how the economy works，and by the limits of what monetary policy can do(it can affect inflation，but it cannot increase the long-term rate of growth)．He controls only short term interest rates，not bond yields，taxes or regulation．Yet for all these constraints，Mr Greenspan has long been the world’s most important economic policy maker and during an exceptional period when globalisation and information technology have been transforming the world economy．
So far as the American economy is concerned，however，the Fed’s policies of the past decade Iook like having painful long-term costs．It is true that the economy has shown amazing resilience in the face of the bursting in 2000 of the biggest stockmarket bubble in history，of terrorist attacks and of a tripling of oil prices．Mr Greenspan’s admirers attribute this to the Fed’s enhanced credibility under his charge． Others point to flexible wages and prices，rapid immigration，a sounder banking system and globalisation as factors that have made the economy more resilient to shocks．
The economy’S greater flexibility may indeed provide a shock-absorber．A spurt in productivity has also boosted growth．But the main reason why America’s growth has remained strong in recent years has been a massive monetary stimulus．The Fed held real interest rates negative for several years，and even today real rates remain low．By borrowing against capital gains on their homes，households have been able to consume more than they earn．Robust consumer spending has boosted GDP growth，but at the cost of a negative personal saving rate，a growing burden of household debt and a huge current-account deficit．kaoshida.[424 words]
1．Mr Greenspan was extravagantly admired since______．
A．his departure means a high point for America’s economy
B．he served as the chairman of the Federal Reserve for long
C．he helped promote the long prosperity of American economy
D．there were a series of financial hazards ahead of him
2．The economic growth rate of America will slow down because______．
A．Mr Greenspan has left his office
B．the economy he left behind was unbalanced
C．the growth rate tends to drop after the high point
D．America has had its rapid growth for so many years
3．It is TRUE that______．
A．Mr Greenspan’s influence has been over exaggerated
B．Mr Greenspan has been acclaimed too extravagantly
C．Mr Greenspan has not been acclaimed too widely
D．Mr Greenspan has no more good influence than bad one
4．It is reasonable to attribute to Mr Greenspan’s endeavor．
A．a(chǎn) sounder banking system
B．the economy’s greater flexibility
C．the bursting of the biggest stockmarket bubble
D．the rapid American economic recovery in troubled periods
5．According to the text，______chiefly accounts for America’s strong growth in recent years．
A．Mr Greenspan’s monetary stimulus
B．Mr Greenspan’s overwhelming influence
C．a(chǎn) huge current-account deficit
D．the rapid development of information technology