Greenspan sees threat of '70s-style inflation

Kevin G. Hall and Robert A. Rankin | McClatchy Newspapers

last updated: September 26, 2007 07:16:26 PM

WASHINGTON —An important point in Alan Greenspan's much-hyped memoir has gone largely unnoticed: He acknowledges that global economic forces, more than Federal Reserve policy, kept inflation low and manageable for two decades.

By global forces he means free trade, the rise of emerging, cheap-labor economies led by China and India and the benefits from information technology and the Internet.