Former US Federal Reserve Chairman Alan Greenspan has said that a repeat of the crisis that brought the country close to default is “perfectly conceivable”.
He told the BBC that he had not seen another situation in Washington where “compromise” seemed so far away.
Mr Greenspan confessed to sympathies with the aims of the Tea Party, the Republican faction that fought the government during debt ceiling talks.
But the former central banker said the movement’s tactics were “undemocratic”.
Mr Greenspan, the most powerful figure in economic policy when he ran the Fed between 1987 to 2006, spoke to the BBC’s Evan Davis ahead of publication of his new book, The Map and the Territory.
What Britain has done with its austerity programme has worked much better than I thought it would”
In a wide-ranging interview to be broadcast on Radio 4’s Today programme and the World Service’s Business Daily, the former Fed chief had strong words for those who thought the eurozone crisis was over.
The crisis is likely to continue until the eurozone sees “consolidation politically. I think that’s where we are going”.
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