Only a few months earlier, Greenspan
had recommended to a Senate committee
that economic regulations all
should be sunsetted. Senator Paul
Sarbanes accused him of "playing with
fire, or indeed throwing gasoline on
the fire," and asked him whether he
favored a sunset provision in the
authorization of the Fed. Greenspan
coolly answered that he did. Do you
actually mean, demanded the senator,
that the Fed "should cease to function
unless affirmatively continued"? "That
is correct, sir," Greenspan responded.
IIAll right," the senator came back.
liThe Defense Department?" "Yes."
The Senator could scarcely believe
his ears. "Now my next question is, is
it your intention that the report of this
hearing should be that Greenspan recommends
a return to the gold standard?"
Greenspan responded, "I've
been recommending that for years,
there's nothing new about that.... It
would probably mean there is only one
vote in the FOMC [Federal Open
Market Committee] for that, but it is
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