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.