Former Fed Chair Alan Greenspan Says Decreasing Supply of Greenbacks Makes the US Dollar a 'Better Store of Value’
On Nov. 2, 2022, the American economist and 13th chairman of the U.S. Federal Reserve, Alan Greenspan, published an opinion editorial that says he envisions a monetary “tailwind” for the U.S. dollar next year. Greenspan expects this to happen even if the Fed decides to pivot its restrictive monetary policy to lower rate hikes or absolve them altogether. Greenspan Discusses Gresham’s Law and the Monetary ‘Tailwind’ Behind the U.S. Dollar Alan Greenspan shared his opinion on Wednesday in a blog post called “Gresham’s Law.” The former Federal Reserve chair described Gresham’s law in his op-ed, and he noted that it can be “colloquially simplified to ‘bad money drives out good.’” Greenspan now serves as a senior economic adviser to Advisors Capital Management, and he believes a strong wind blowing in the direction of the greenback will continue to bolster the U.S. dollar. “Even if, as some prognosticators expect, U.S. inflation crests in the first half of 2023, and the Feder...