Jean-Claude Trichet was in town this week at the Institute of European Affairs, where he regaled a gathering of top economists and decison-makers with his favourite Alan Greenspan story.

According to the possible future head of the European Central Bank, the head of the US Federal Reserve was before a Senate committee and was asked by one member of the house whether or not he intended to raise interest rates at some point over the next three months. Mr Greenspan spoke for 20 minutes about the various business cycles within the US, the global situation, the currency markets and the bond markets.

The senator listened, and said at the end: "Thank you Mr Greenspan, I understand from your answer that you probably will raise interest rates." The man from the Fed allegedly replied that if the senator thought he understood what he was talking about, he must be mistaken.