Alan Greenspan

1
Alan Greenspan

• Chairman of the Federal Reserve (1987-2006)

2
Beginnings

• 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

3
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 Rands 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

4
Strategy and Philosophy

• Gradualist policy making
• 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)

5
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

6
Economic Achievements

• 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)

7
Quotes

• "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."

8
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 Administrations
  wishes in tax cuts.
• Some suggested that he allowed the Fed and the
  government to become too close.

9
Life after the Fed

• 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

10
The Economy After Alan

• Some believed a recession is inevitable after
  Greenspans retirement, with the DOW predicted to
  lose at least 500 points
• Confidence in the strong market he has created
• Succeeded by Ben Bernanke

11
Bibliography

• 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.1614
  9/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. http//abcnews.go.com/Business/st
  ory?id88536page1
• image homepage.mac.com
• Slide 5 "Alan Greenspan." Who2? Biographies.
  Who2?, 2006. Answers.com 17
• Jan. 2007. http//www.answers.com/topic/alan-gr
  eenspan
• image www.masternewmedia.org
• Slide 6 ABC News. Fromson, Brett D. 28 July
  2006. Being Alan Greenspan. http//abcnews.go.
  com/Business/story?id88536page1
• Roach, Stephen S. Think Again Alan Greenspan.
  Foreign Policy.com. http//www.foreignpolicy.com/s
  tory/cms.php?story_id2747page5
• 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/t
  opic/alan-greenspan
• image www.words.grubbykid.com
• Slide 9 Alan Greenspan. Wikipedia.com.
  http//en.wikipedia.org/wiki/Alan_Greenspan
• Image www.forbes.com