Economic Laws and Institutions

Greenspan and the "Fed"

Alan Greenspan is the leading economic figure in the U.S. He was born on March 6, 1926, in New York City and studied economics at New York University where he received his B.S. (1948), the M.A. (1950) and later the Ph.D (1970). At Columbia University he undertook advanced graduate study. As early as during his studies, Greenspan was given the post of Chairman and President of Townsend-Greenspan & Co., Inc., a consulting firm in NYC (1954 to 1974, 1977 to 1987). This was only the beginning of his career: Greenspan has held many positions. Here are some examples:

Chairman of the President's Council of Economic Advisers under President Ford
Member of Reagan's Economic Policy Advisory Board
Member of TIME Magazine's Board of Economists
Consultant to the Congressional Budget Office
Chairman of the President's Foreign Intelligence Advisory Board
Chairman of the Commission on Financial Structure and Regulation
Chairman of the Task Force on Economic Growth

Examples of noncorporate positions he has held:
Director of the Institute for International Economics
Chairman of the Conference of Business Economists
President and Fellow of the National Association of Business Economists

Greenspan's - without a doubt - most important position has been Chairman of the Board of Governors of the Federal Reserve System (the "Fed") since 1987. His fourth four-year term will end in 2004. Greenspan has served under five Presidents: Gerald Ford, Ronald Reagan, George Bush, Bill Clinton and George W. Bush.

In his role as Chairman of the Federal Reserve Board, Greenspan is a very well-known and important person. Surely there is the danger that he could use his influence for unethical purposes. The fall of Enron makes the public suspicious of all economic leaders: Greenspan accepted the Enron Award for Distinguished Public Service a few days after the Enron Scandal came to light and three weeks after a call from the chairman of Enron who wanted Greenspan to help the company survive. Greenspan accepted the prize but refused the $15,000 sculpture and the $10,000 honorarium, because of his position on the Federal Reserve. The advice Greenspan gave a student adds to his upstanding image in the media: "The best chance you have of making a big success in this world is to decide from square one that you're going to do it ethically."