NEW YORK—March 3, 2011 — In an article to be published in the forthcoming issue of International Finance, Dr. Alan Greenspan, former chairman of the Federal Reserve, issues a major analysis of the U.S. government's economic recovery and reform efforts since the collapse of Lehman Brothers in September 2008.
Greenspan calculates that long-term fixed corporate investment "is now at levels, relative to cash flow, that we have not experienced since 1940." This shortfall, he explains, accounts for much of the tepid recovery and current abnormally high levels of unemployment.