Alan Greenspan, former chairman of the Federal Reserve, acknowledged that many regulatory failures contributed to the financial crisis, but he said the Fed's policy of low interest rates was not a factor. "We had been lulled into a sense of complacency by the modestly negative economic aftermaths of the stock market crash of 1987 and the dotcom boom," Greenspan wrote in a paper. "Given history, we believed that any declines in home prices would be gradual. Destabilizing debt problems were not perceived to arise under those conditions."
Published in Brief: