Although he acknowledged that Asia's woes were "demonstrably" restraining demand for American goods, Mr Greenspan reckoned there was still a "significant" risk of a pick-up in inflation.
This has led to the assertion that aviation represents a "net negative effect" on the UK tourism industry, and that restraining demand for air travel would encourage more domestic tourism, with the consequent economic benefit of reducing the tourism deficit.
But factors like a stagnant housing market in Japan still restrained demand, Mr. Mendizabal said.
He admits that measures will be needed to restrain demand, and even concedes a role for higher prices and for rainwater harvesting.
That would help restrain demand, would raise money to pay for increasing the capacity of Britain's stunted road network where this is necessary, and would show, through drivers' willingness to pay, where that capacity can most efficiently be added.
This leads to inflation, and obliges the Fed (in America's case) to restrain demand by raising interest rates.An obvious place to look for signs that capacity is getting overstretched is the labour market.
Although the necessary reallocation of resources to enhance security may restrain advances in productivity for a time, the long-term prospects for productivity growth and the economy remain favorable and should become evident once the unusual forces restraining demand abate.
But high prices have had an effect, restraining demand and stimulating supply.
Ministers are planning to try to restrain demand overruns in other ways.
