In a detailed review of the causes of the financial crisis, former Federal Reserve Chairman Alan Greenspan acknowledged a range of regulatory failures but strongly disputed the widely held view that the Fed left interest rates too low for too long.

"We had been lulled into a sense of complacency by the modestly negative economic aftermaths of the stock market crash of 1987 and the dot-com boom," Greenspan said in a paper, "The Crisis," that he will present at a Brookings Institution conference today. "Given history, we believed that any declines in home prices would be gradual. Destabilizing debt problems were not perceived to arise under those conditions."

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