Every morning, Alan Greenspan wakes up at 5.30 and within 1.5 hours takes a bath and read the economic reports, considering the financial and economic problems of the country. Presidency of the Council of Governors of the Federal Reserve System (U.S. Central Bank), an influential body of economic policy, Greenspan was appointed by President George W. Bush June 20, 2000, and for the fourth time.
Alan Greenspan was born in March 1926 in Brooklyn, in an area which was called «Frankfurt on the Hudson», because there selilos many Jewish immigrants from Germany. Parents of his father, a stockbroker, also came from Germany. On the maternal side his ancestors were immigrants from Poland. When Alan turned 5 years old, his parents divorced, and he brought his mother and her parents. His mother, Rose, after divorce, along with Alan moved to her parents in a small 2-room apartment in a six-story house on the corner of Broadway and 163rd Street and went to work in a furniture store. Next to them lived a family sisters Rose — Mary and her husband Jacob Halpert, in which the couple had two children — a boy and a girl. It is with them and with their father and a young Alan spent most of the time.
When Alan Greenspan turned 9 years old, his father in one of his infrequent visits gave him his recently published book called «Ahead — way out of crisis.» In it, Herbert Greenspan defended the need for government programs to stimulate the economy. Who knows, maybe this is the book my father had already aroused the interest, or at least curiosity about the economy, the next head of the Fed. Especially early on by the young Alan Greenspan, was distinguished by his outstanding abilities. In 5 years he was free to fold in the mind of three-digit numbers. The mother is often demonstrated his ability to guests and neighbors. In school, he clearly stood out among their peers, in their reviews, «Alan always did everything perfectly.» He grew up quite normal for a child: playing with friends, practicing sports.
In 1952, Alan Greenspan is married to Joan Mitchell, the artist. However, their marriage was short-lived — they parted a year later. But it was the first wife met Alan and Ayn Rand, a writer and social philosopher, whose views have had a strong influence on the young Greenspan. It was Ayn Rand, in the words of Alan Greenspan, made him think that «capitalism — is not only effective and practical system, but also moral.» Greenspan and Rand remained friends until her death in 1982. Second marriage, Alan Greenspan decided to enter only 45 years after the first, in 1997, after 12 years of relations with the new chosen one — Andrea Mitchell, international journalists from the television Al-BBC.
In 1948, Greenspan received a bachelor’s degree, and in 1950 — a master’s degree in economics at New York University. For a time he studied in graduate school at Columbia University in 1977, he defended his Ph.D. in economics at New York University. After graduation, he held important government economic posts, and also worked in private business.
During the periods 1954-74 and 1977-87 years. Alan Greenspan was the chairman of the board of directors and president of a private consultancy firm, Townsend-Greenspan & Co., which he founded together with a specialist in securities, William Townsend. After Townsend’s death in 1958, Greenspan became the principal owner of the company. In 1974 he accepted an invitation from President Richard Nixon to head the Council of Economic Advisors, an important body for the formulation of economic policy. Headed the Council of 1 September 1974, a month before Nixon’s resignation, he continued working at this post under President Gerald Ford before coming to power of President Jimmy Carter in 1977. Another important government positions held by Alan Greenspan is under Reagan in the years 1981-83., — Chairman of the National Commission on the reform of social insurance. When in 1987 the former Fed chairman Paul Volcker, abruptly resigned, his successor, President Reagan proposed it was Greenspan. Then Alan Greenspan closed his consulting firm and focused on government work.
In addition to the civil service Greenspan had work to do in the private sector: he was corporate director of Aluminum Company America, a corporation «Autometik Deyta Prosesing and General Foods,» «Jay JP Morgan, Mobil, a member of the Board of Trustees of the research corporation Rand, director of the Institute for International Economics, a member of the supervisory board of the Hoover Institution. The whole record would occupy too much space. His knowledge, ability to think strategically, to make the correct predictions were always in demand. It is interesting that Alan Greenspan — one of the staunchest supporters and advocates of free markets and entrepreneurship — most of his life is spent on civil service. Some of his closest associates even consider doing it on purpose, to make it easier to fight from the inside with the chief evil of capitalism — the bureaucracy and the State itself.
Savior of the American economy
Alan Greenspan — a consistent Republican supporter of liberal (in Russia’s sense) views on the economy and economic policy. Since the beginning of its public activities, he distinguished himself as an advocate of tight monetary policy to prevent excessive inflation than earned the respect of the financial community, the United States. In America it is believed that it was Alan Greenspan, by skillful monetary policy has managed to minimize the devastating consequences for the economy of the so-called «Black Friday» — the stock market crash on Oct. 19, 1987, when the Dow hit 508 points.
As a result of action the Fed head collapse in the stock market was much less painful for the U.S. economy. In its follow-up, Alan Greenspan has focused on combating inflation. He managed to convince of the correctness of their approaches and a new president — Bill Clinton and has continued to work for democratic administration. In 1996, Greenspan, as many experts believe that managed to reduce the «overheating» of the stock market only one mention of the fact that the shares on the Stock Exchange soared, in his opinion, too high. The wholesale sale of shares on the stock exchange and the situation eased.
In 1998, Alan Greenspan, ably cope with the effects on the American economy of financial crises in Latin America, Southeast Asia and Russia, to persuade his colleagues on the Fed lowered the discount rate on three occasions. Largely thanks to the Fed policy chapters in the late 90-s unemployment rate reached its lowest for more than two decades, the indicator (4%), while the inflation rate to its lowest level in 11 years (1.5% annualized).
However, it would be wrong to say that Greenspan has no opponents and critics. For example, George Grant, publisher of the journal «Review of interest rates,» argues that it is the fault of Greenspan in the late 90-ies on the American Stock Exchange «pouted a huge bubble, which led to excessive investment in the economy, its» overheating «and threat of inflation. According to some experts, it is the Fed chief wrongly recommended to raise the discount rate in 1998 and 2000. That led to recession in March 2001.
Sometimes critics accuse Alan Greenspan is that he uses in the Fed essentially «anti-crisis» approach, but requires long-term monetary policy. As noted by Rich Miller, a columnist for the influential journal Business Week, «if such a policy really was, in July 2003, the discount rate should be reduced by 0.5 percentage points instead of 0.25, as done by the Fed.» It is believed by some analysts, in the stagnation early 2000’s, the loss of confidence in the Fed’s policy in the United States actually took place among American and foreign investors.
However, despite the criticism, the authority of Alan Greenspan has unshakable. Currently, he has consistently opposed the growing protectionism in the economic policy of the United States. Despite the growing trade deficit the United States, Alan Greenspan is firmly convinced that protectionism could harm the competitiveness of American companies in the globalized economy. In his speech at the Cato Institute in November 2003, Greenspan expressed concern about the growing balance of payments deficit, which reached 5% of GDP (480 billion U.S. dollars), significantly higher than the previous record of 3.5% of GDP, noted in 1986, however, He stressed that the undeniable evidence of the power of the American economy today is the lack of signs of any inflationary pressure on the economy, despite the fact that over the past 2 years, the dollar fell in value relative to other leading world currencies by about 20%.
At least twice a year, the head of the Federal Reserve System serves the U.S. Congress a report on the situation in the economy and finance. To listen to him carefully and policy analysts around the world. From a projection head FRS can fly up or falling share prices. Aware of his influence, Alan Greenspan, often tries to express sufficiently vague and ambiguous. He himself belongs to the phrase: «If I seem too clear, then, very likely, you did not understand me.» In fact, his style of speech has become so cautious and ambiguous, it is said, even the wife had to ask again to twice what he wants. Perhaps this caution and awareness of its economic impact and is the secret of his power?
Alan Greenspan speaks regularly in the scientific and business publications on the most pressing economic problems. Thus, among his works, such as: «Global Economic Integration: Opportunities and Challenges,» 2001, «Income inequality: issues and policy options», 2002, his numerous speeches at symposia and conferences, the Congress has always caused great interest in American and global economic and financial community. Merits Greenspan has been recognized in his numerous awards. He was elected an honorary professor at leading American and foreign universities — Harvard, Yale, Penn, Notre Dame, marked honorable sign of the American Institute of Public Service, awarded the French Legion of Honor. It is interesting that the salary of Alan Greenspan — the lowest among the leaders of the central banks of the Group of Seven: «only» 171 900 dollars per year. For example, the head of the Italian central bank gets 743 thousand dollars, and the Bank of England — 446 thousand dollars a year. However, the head of the U.S. Federal Reserve is clearly much more well known than the names of many of his colleagues, and the authority, of course, higher. Maybe for the banker is not always in money luck.