Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Greenspan's Idea of 'Cheap Price' to Pay for Tackling Deficit Crisis Greenspan's Idea of 'Cheap Price' to Pay for Tackling Deficit Crisis

This ad will end in seconds
Close X

Want access to this content? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation


Greenspan's Idea of 'Cheap Price' to Pay for Tackling Deficit Crisis

One of the biggest challenges posed by the fiscal cliff is enacting reforms that don’t hurt the economy in the short run while establishing a sustainable long-run solution to the country’s rising budget deficits.

But maybe too much emphasis is being placed on the short-run risk to the economy, former Federal Reserve Chairman Alan Greenspan said Friday.

“If the cost of getting out from under this problem is a moderate recession, I would say it is a cheap price,” Greenspan said at an event hosted by the nonpartisan Peter G. Peterson Foundation. The nonpartisan Congressional Budget Office has estimated that the economy will enter a recession in the first half of 2013 if nothing is done to address the year-end threats of tax hikes and spending cuts that make up the cliff.

“Somehow thinking we're going to get through this thing without paying, that's a load of nonsense,” Greenspan said. 

Greenspan cautioned that problems in the markets as a result of fiscal concerns are likely to creep up rapidly. “The one thing about markets is they don’t give you any advance notice,” he said. 

Don't Miss Today's Top Stories


Rick, Executive Director for Policy

Concise coverage of everything I wish I had hours to read about."

Chuck, Graduate Student

The day's action in one quick read."

Stacy, Director of Communications

I find them informative and appreciate the daily news updates and enjoy the humor as well."

Richard, VP of Government Affairs

Chock full of usable information on today's issues. "

Michael, Executive Director

Sign up form for the newsletter