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“We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.” quote by Alan Greenspan
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“We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.”

Alan Greenspan

About This Quote

Source Speech: Economic Forum, 2015

Central banks can ignore a financial bubble if it doesn't affect real economic fundamentals.

In simple terms: Ignore bubbles that don’t hurt the real economy.

Key Takeaway

Focus on real‑economy health.

Themes

monetary policy financial stability inflation

Mood

cautious analytical

Type

economic policy

When to use this quote

  • central bank strategy
  • investment decisions
  • business planning
  • policy analysis

Key Concepts

macro‑economics risk assessment

Questions to Reflect On

  • Should banks monitor all asset bubbles?
  • What are the risks of ignoring a bubble?
A Different Perspective

Bubbles can still cause indirect damage.

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