In his most recent congressional testimony, Alan Greenspan emphasized one of his core economic beliefs—namely, that federal budget surpluses have boosted investment and economic growth by keeping real interest rates lower than they would have been otherwise. This has also been a guiding principle of budgetary policies championed by the Clinton Administration. Indeed, during the January announcement of his nomination for a third term as Federal Reserve chairman, Greenspan said the Administration's commitment to fiscal discipline was instrumental in achieving the longest economic expansion in the nation's history.
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