Even with that in mind, the ECB is limited in what it can do because these fundamental problems like the stagnation of real incomes don't have easy solutions, the former Fed chair said.
"There's a certain amount that monetary policy can do, but our problem is fundamentally fiscal," he said, adding that this is true in the United States as well as "every major country in Europe.
Part of the problem is that the "developed countries are all aging very rapidly," which is leading to a higher ratio of government spending in the form of entitlements, according to Greenspan.
* * * *
There will be a lot less money to spend on GW problems in other words! Additionally, nations in the EU are going to have a LOT of time by their so-called leaders taken up with a large number of referendums in the EU on staying. Already, I am reading about votes in France, Italy, Sweden, the Netherlands, and perhaps another in Scotland very soon.
GW will now take a back seat seems to be the theme now.
Gerry
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