Every morning Alan Greenspan wakes up in 5.30 and during 1.5 hours taking a bath and reading economic reports, thinks over the financial and economic problems of the country. For the post of Chairman of the Board of Governors of the Federal Reserve System (Central Bank of the United States), the most influential body of the country's economic policy, Greenspan was appointed by President George W. Bush 20 June 2000 of the year, and for the fourth time.
Alan Greenspan was born in March 1926 years in Brooklyn, near, which was called "Frankfurt on the Hudson", since many Jewish immigrants from Germany settled there. His father's parents, stock broker, were also from Germany. On the maternal side, his ancestors were immigrants from Poland. When Alan was 5 years, his parents divorced, and he was raised by his mother and her parents. His mother Rose, after the divorce, together with Alan, moved to her parents in a small 2-room apartment in a six-story building on the corner of Broadway and 163rd Street and went to work in a furniture store.. Sister Rose's family lived next to them. – Mary and her husband Jacob Halpert, which had two children – boy and girl. It was with them and with their father that young Alan spent most of his time.
When Alan Greenspan Turned 9 years, his father, on one of his infrequent visits, presented him with his recently published book, which was called “Ahead – way out of the crisis ". In it, Herbert Greenspan defended the need for government programs to stimulate the economy.. Who knows, maybe, it was this book of my father that aroused interest even then, or, at least, curiosity about economics in the future leader FED. Moreover, already in childhood, young Alan Greenspan was distinguished by outstanding abilities. IN 5 years old he could freely add three-digit numbers in his mind. His mother often demonstrated this skill to guests and neighbors.. At school, he clearly stood out among his peers., according to their reviews, "Alan always did everything perfectly". At the same time, he grew up as a completely normal child.: played with friends, I did sports.
IN 1952 Alan Greenspan married Joan Mitchell, Artist. However, their marriage was short-lived. – they broke up after a year. But it was the first wife who introduced Alan to Ayn Rand., writer and social philosopher, whose views had a strong influence on the young Greenspan. It is Ayn Rand, according to Alan Greenspan, made him think about, that “capitalism – it is not only an efficient and practical system, but also moral ". Greenspan and Rand remained friends until her death in 1982 year. Alan Greenspan decided to enter into a second marriage only through 45 years after the first, in 1997 year, after 12 years of relationship with a new darling – Andrea Mitchell, international journalist from NBC.
IN 1948 year Greenspan received his bachelor's degree, and in 1950 year – Master's Degree in Economics from New York University. For a time he attended graduate school at Columbia University, in 1977 he defended his Ph.D. in economics from New York University. After graduating from university, he held important government economic positions., and also worked in private business.
During periods 1954-74 And 1977-87 yy. Alan Greenspan served as chairman and president of the private advisory firm Townsend Greenspan & Co., founded by him together with a securities specialist, William Townsend. After Townsend's death 1958 year Greenspan became the main owner of the company. IN 1974 year he accepted the offer of President Richard Nixon to chair the Council of Economic Advisers under the President, important body for the development of the country's economic policy. Heading the council 1 September 1974 of the year, a month before Nixon's resignation, he continued in this position and under President Gerald Ford until the coming to power of President James Carter in 1977 year. Another important government position, occupied by Alan Greenspan already under Reagan in 1981-83 gg., – Chairman of the National Commission for the Reform of the Social Insurance System. When in 1987 G. former Fed chairman Paul Volcker unexpectedly resigns, President Reagan nominated Greenspan to be his successor. After that, Alan Greenspan closed his consulting company and focused on government work..
In addition to the civil service, Greenspan managed to work hard in the private sector.: he was a corporate director at the Aluminum Company of America, in "Automatic Day Processing" corporations, General Foods, "J.P. Morgan", "Mobile", member of the Board of Trustees of the research corporation "Rand", Director of the Institute of International Economics, Member of the Supervisory Board of the Hoover Institution. Your entire track record would take up too much space. His knowledge, ability to think strategically, making correct predictions have always been in demand. At the same time, it is curious, that Alan Greenspan – one of the most dedicated adherents and advocates of the free market and entrepreneurship – spent most of his life in the civil service. Some of his close associates even consider, that he does it on purpose, to make it more convenient to fight from within with the main evil of capitalism – bureaucracy and the state itself.
The Savior of the American Economy
Alan Greenspan – consistent republican, adherent of liberal (in the Russian sense) views on economics and economic policy. From the very beginning of his state activity, he showed himself as a supporter of a tight monetary policy in order to prevent excessive inflation., which won the respect of the entire US financial community. In America it is believed, that it was Alan Greenspan who, thanks to his skilful monetary policy, was able to minimize the devastating consequences for the economy of the so-called "Black Friday" – stock market crash 19 October 1987 of the year, when the Dow Jones hit 508 points.
As a result of the actions of the head of the Fed, the crash in the exchange market turned out to be much less painful for the US economy.. In his subsequent activities, Alan Greenspan focused on fighting inflation. He managed to convince the new president of the correctness of his approaches. – Bill Clinton and continued to work already for the Democratic administration. IN 1996 year Greenspan, according to many experts, managed to reduce the "overheating" of the stock market with just one mention of that, that stocks have skyrocketed, in his opinion, too high. A massive sale of shares began and the situation on the stock exchange was defused.
IN 1998 Alan Greenspan skillfully resisted the impact on the American economy of the financial crises in Latin America, Southeast Asia and Russia, convincing his Fed counterparts to cut the interest rate three times. Largely thanks to the policy of the head of the Federal Reserve in the late 90s, the unemployment rate in the country reached its lowest in more than two decades. (4%), and the inflation rate to the minimum level for 11 years (1,5% on an annualized basis).
However, it would be wrong to state, that Greenspan has no opponents and critics. For example, George Grant, publisher of the journal "Interest Rate Review", approves, that it was Greenspan's fault in the late 90s that a huge soap bubble was inflated on the American stock exchange, which led to overinvestment in the economy, its "overheating" and the threat of inflation. According to some experts, it was the head of the Fed who erroneously recommended raising the interest rate by 1998 And 2000 gg., which led to the economic downturn in March 2001 of the year.
Sometimes critics accuse Alan Greenspan of, that he mainly uses the "anti-crisis approach" in the Fed's activities, a long-term monetary policy is required. As Rich Miller notes, columnist for the influential Business Week magazine, “If such a policy really was, then in July 2003 years, the discount rate had to be reduced by 0.5 percentage points instead of 0.25, how the Fed did it ". According to some analysts, in the stagnation of the early 2000s, loss of confidence in the Fed's policy in the United States did indeed occur among American and foreign investors.
but, despite criticism, Alan Greenspan's authority is still unshakable. He now consistently opposes the growing protectionism in US economic policy.. Despite the growing US trade deficit, Alan Greenspan is firmly convinced, that protectionism could harm the competitiveness of American companies in a globalizing economy. In his speech at the Kato Institute in November 2003 Years Greenspan Expresses Concern About Growing Balance of Payments Deficit, who has reached 5% GDP (480 billion. Doll.), which is significantly higher than the previous record in 3.5% GDP, tagged in 1986 G. However, he stressed, that the undoubted evidence of the strength of the American economy today is the absence of signs of any inflationary pressures on the economy, despite the fact that over the past 2 year, the dollar fell in value relative to other leading world currencies by about 20%.
Money Maestro
At least twice a year, the head of the Federal Reserve System addresses the US Congress with a report on the situation in the economy and in the field of finance.. Politicians and analysts around the world listen carefully to his words.. From one forecast of the head of the Fed, stock quotes can fly up or fall. Realizing your influence, Alan Greenspan often tries to express himself rather vaguely and ambiguously. He owns the phrase: “If I seem too clear to you, then, very likely, you do not understand me". In fact, his style of speech has become so cautious and ambiguous., what, they say, even his wife has to ask him twice, what does he want?. May be, in this caution and in the awareness of his economic influence lies the secret of his power?
Alan Greenspan regularly speaks to the scientific and economic press on the most pressing economic issues. So, among his works, for example: “Global economic integration: opportunities and challenges ”, 2001 G., “Income inequality: challenges and policy options ”, 2002 G. His numerous presentations at symposia and conferences, in Congress invariably arouse great interest of the American and world economic and financial community. Greenspan's merits are recognized in his many awards. He was elected professor emeritus of leading American and foreign universities. – Harvard, Yale, Penn, Notre Dame, Honored by the American Institute of Public Service, awarded the French Legion of Honour. curious, that Alan Greenspan's salary – lowest among G7 central bankers: "Just" 171 900 dollars a year. For instance, the head of the Italian Central Bank receives 743 thousand. Dollars, a Bank of England – 446 thousand. dollars a year. However, the name of the head of the US Federal Reserve is clearly much better known., than the names of many of his colleagues, yes and authority, certainly, Higher. May be, and for a banker, happiness is not always in money.
