Alan Greenspan

Chairman of the U.S. Federal Reserve from 1987 to 2006 / From Wikipedia, the free encyclopedia

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Alan Greenspan (born March 6, 1926) is an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC.

Quick facts: Alan Greenspan, 13th Chairman of the Federal ...
Alan Greenspan
13th Chairman of the Federal Reserve
In office
August 11, 1987  January 31, 2006
President
Deputy
Preceded byPaul Volcker
Succeeded byBen Bernanke
Member of the Federal Reserve Board of Governors
In office
August 11, 1987  January 31, 2006
President
  • Ronald Reagan
  • George H. W. Bush
  • Bill Clinton
  • George W. Bush
Preceded byPaul Volcker
Succeeded byBen Bernanke
10th Chairman of the Council of Economic Advisers
In office
September 4, 1974  January 20, 1977
PresidentGerald Ford
Preceded byHerbert Stein
Succeeded byCharles Schultze
Personal details
Born (1926-03-06) March 6, 1926 (age 96)
New York City, U.S.
Political partyRepublican
Spouses
  • Joan Mitchell Blumenthal
    (m. 1952; annulled 1953)
  • (m. 1997)
EducationNew York University (BA, MA, PhD)
Close

First nominated to the Federal Reserve by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position, behind only William McChesney Martin.[1] President George W. Bush appointed Ben Bernanke as his successor. Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his profile to a point that several observers likened him to a "rock star".[2][3][4] Democratic leaders of Congress criticized him for politicizing his office because of his support for Social Security privatization[5][6] and tax cuts.[7]

Many have argued that the "easy-money" policies of the Fed during Greenspan's tenure, including the practice known as the "Greenspan put", were a leading cause of the dot-com bubble and subprime mortgage crisis (the latter occurring within a year of his leaving the Fed), which, said The Wall Street Journal, "tarnished his reputation".[8][9] Yale economist Robert Shiller argues that "once stocks fell, real estate became the primary outlet for the speculative frenzy that the stock market had unleashed".[10] Greenspan argues that the housing bubble was not a result of low-interest short-term rates but rather a worldwide phenomenon caused by the progressive decline in long-term interest rates - a direct consequence of the relationship between high savings rates in the developing world and its inverse in the developed world.