Alan Greenspan
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Chairman of the Federal Reserve
(1987-2006)
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Beginnings
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» Born March 26, 1926 in New York City
» Briefly stinted as professional jazz
saxophonist, studied clarinet at
Juilliard from 1943-1944
» Private economic consultant from
1954-1974 and 1977-1987
» Chairman of the Council of Economic
Advisors during Presidency of Gerald
Ford (1974-1977)
» Graduated from New York University in
1977 with a doctorate in economics
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Objectivism
• Supporter of Objectivist philosophy: reason, egoism,
and capitalism are cornerstones of free society
• During 1950s and 1960s, wrote articles for Objectivist
newsletters
• Wrote several essays for Ayn Rand’s book,
Capitalism: the Unknown Ideal, one supporting the
gold standard.
• Later criticized by some Objectivists as abandoning
their principles for his position at the Federal Reserve
Strategy and Philosophy
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• Objectivism
• Understood positive effects of globalization
and policies such as “deregulation”
• Laissez-faire approach to capitalism
• Attacked inflation before other economic
issues (known as inflation hawk)
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The Washington Years
Appointed chairman of the Federal
Reserve System on June 2, 1987 by
President Ronald Reagan
Faced 1987 stock market crash within
two weeks of his appointment
Re-appointed by Presidents George
H.W. Bush, Bill Clinton, and George W.
Bush
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Economic Achievements
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Foresaw productivity revolution
Kept dollar mostly strong and stable throughout
tenure
Made progress on three Fed goals: price
stability, full employment, and economic growth
Played large role in stabilizing the Mexican
crisis, the Asian crisis, and the Long Term
Capital Management crisis (Clinton
Administration)
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• "The willingness to take risk is essential to the
growth of a free market economy. If all savers
and their financial intermediaries invested
only in risk-free assets, the potential for
business growth would never be realized.”-
Nov. 1994
• "I guess I should warn you, if I turn out to be
particularly clear, you've probably
misunderstood what I said."
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Criticism
Housing bubble
Focused more on controlling prices than
on reaching full employment
Criticized by some senators and
economists as too willing to follow the
Bush Administration’s wishes in tax cuts.
Some suggested that he allowed the Fed
and the government to become too
close.
Life after the Fed QuickTime™ an d a
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◊ Married to television journalist Andrea
Mitchell since 1997
◊ Works as a private consultant for firms
through his company Greenspan
Associates LLC
◊ Working on a memoir
The Economy After Alan
• Some believed a recession is inevitable
after Greenspan’s retirement, with the
DOW predicted to lose at least 500
points
• Confidence in the strong market he has
created
• Succeeded by Ben Bernanke
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» Slide 2: “Alan Greenspan.” Wikipedia.com.
http://en.wikipedia.org/wiki/Alan_Greenspan
» Slide 3: Bradford, Bill. “The American Enterprise: Alan Greenspan and Ayn Rand.” October
1997. http://www.taemag.com/issues/articleid.16149/article_detail.asp.
» Slide 4: “Alan Greenspan.” Wikipedia.com.
http://en.wikipedia.org/wiki/Alan_Greenspan
» Beattie, Andrew. “A Farewell to Alan Greenspan.” 28 July 2006.
http://www.investopedia.com/articles/06/farewellgreenspan.as
» ABC News. Fromson, Brett D. 28 July 2006. “Being Alan Greenspan.”
Bibliography
http://abcnews.go.com/Business/story?id=88536&page=1
» image: homepage.mac.com
» Slide 5: "Alan Greenspan." Who2? Biographies. Who2?, 2006. Answers.com 17
Jan. 2007. http://www.answers.com/topic/alan-greenspan
image: www.masternewmedia.org
» Slide 6: ABC News. Fromson, Brett D. 28 July 2006. “Being Alan Greenspan.”
http://abcnews.go.com/Business/story?id=88536&page=1
» Roach, Stephen S. “Think Again: Alan Greenspan.” Foreign Policy.com.
http://www.foreignpolicy.com/story/cms.php?story_id=2747&page=5
» Image: www.usrarecurrency.com
» Slide 7: "Alan Greenspan." Wikipedia. Wikipedia, 2005. Answers.com 17 Jan. 2007.
http://www.answers.com/topic/alan-greenspan
» Image: argoul.blog.lemonde.fr
» Slide 8: "Alan Greenspan." Investopedia. Investopedia Inc., 2000. Answers.com 17 Jan. 2007.
http://www.answers.com/topic/alan-greenspan
» "Alan Greenspan." Wikipedia. Wikipedia, 2005. Answers.com 17 Jan. 2007.
http://www.answers.com/topic/alan-greenspan
image: www.words.grubbykid.com
» Slide 9: “Alan Greenspan.” Wikipedia.com.
http://en.wikipedia.org/wiki/Alan_Greenspan
» Image: www.forbes.com
» Slide 10: “Alan Greenspan.” Wikipedia.com.
http://en.wikipedia.org/wiki/Alan_Greenspan
» Image: www.willisms.com
lis ms.com