VOLCKER DEPARTURE REVIVES DLR, INFLATION FEARS
  Paul Volcker's decision not to go for a
  third term as Federal Reserve Chairman and the nomination of
  Alan Greenspan to replace him have revived deep concerns about
  the U.S.' ability to prevent a further dollar decline and stem
  rising inflation, financial market analysts said.
      Although Greenspan is known as a committed anti-inflation
  fighter in the Volcker mould, doubts are already surfacing in
  the U.S. financial markets as to whether he has enough
  political clout and monetary experience to wage a tough
  campaign against inflation over the next year or two.
      "The critical issue is how (Greenspan) will deal with
  inflation," said Stephen Axilrod, Vice Chairman of Nikko
  Securities Co International Inc and former staff director for
  monetary and financial policy at the Fed.
      "A lot of questions have been raised by Volcker's
  departure. Until Greenspan answers them, the markets will
  remain nervous," added Stephen Slifer, money market economist
  at Shearson Lehman Government Securities Inc.
      This morning's announcement sent the dollar into a
  tailspin, which was halted only by concerted central bank
  intervention in the open currency market.