Legendary former US Federal Reserve chair Alan Greenspan passes away at age 100
New York, June 22
Legendary economist and long-time Federal Reserve chairman Alan Greenspan has died at the age of 100 due to complications related to Parkinson's disease.
His death was confirmed by his wife of 29 years, Andrea Mitchell, who is the chief Washington correspondent and chief foreign affairs correspondent for NBC News.
"Alan passed away at our home this morning at the age of 100 from complications of Parkinson's disease," Mitchell said in a statement, according to an NBC report.
"He was a giant of a man who helped shape the U.S. economy for decades under presidents of both parties, but was always honest in acknowledging his mistakes," the statement read.
Greenspan served under four US Presidents right from the close of the Cold War era in 1987 till 2006, just before the beginning of the global financial crisis.
Greenspan was known as a free-market champion who was credited with deregulating the financial markets but also blamed for sowing the seeds of what would later become the 2007-08 global financial crisis.
The second longest-serving Federal Reserve chairman, Greenspan rose from humble origins. Born to Jewish parents and in the Jewish enclave of Washington Heights, New York, Greenspan went on to become one of the most influential Federal Reserve chiefs.
A trained economist from New York University, Greenspan became chairman of the President's Council of Economic Advisors during Nixon's last year in office in 1974. He continued in the position when Gerald Ford took over as US President till 1976.
When Greenspan first took public office as an advisor, interest rates were regulated. There were hardly any financial derivatives, and the value of the dollar was pegged to gold. Under Greenspan, the US economy boomed in what is the longest period of expansion from 1991 to 2001.
Greenspan was an associate of Atlas Shrugged writer and free-market proponent Ayn Rand in the 1950s.
"Ayn Rand and I remained close until she died in 1982, and I'm grateful for the influence she had on my life. I was intellectually limited until I met her," Greenspan wrote in The Age of Turbulence: Adventures in a New World.
Greenspan is known for using monetary policy to launch pre-emptive strikes at inflation but is also criticised for keeping interest rates low during the early 2000s that many think led to the global financial crisis later on in 2007.
During a speech in 1996, Greenspan coined the term "irrational exuberance", describing a phenomenon when investor enthusiasm drives up asset prices that are devoid of the real economic conditions on the ground.
— ANI
Reader Comments
A complex legacy. He championed free markets but his low interest rates after 2000 created a bubble that burst globally, affecting even our IT sector. Still, 100 years is a full life. Sad to see him go.
Very few economists have such influence. His association with Ayn Rand is interesting. In India we have our own debates about market regulation vs state control. Greenspan's mistakes remind us that deregulation needs caution. Om Shanti.
The man who presided over the Great Moderation but also the seeds of the 2008 crisis. His "irrational exuberance" speech was prophetic. However, his legacy is mixed. For India, his policies indirectly influenced our 1991 reforms era thinking. May his soul rest.
A truly iconic figure. As a student of economics, I've studied his policies extensively. He was brilliant but not infallible. The 2008 crisis was partly a result of his faith in deregulation. Still, 100 years is a milestone. Sad news. 😔
From our Indian perspective, Greenspan's tenure saw the rise of globalisation that benefited our economy. But his mistakes taught us the dangers of unchecked financial innovation. A giant who shaped our world, for better or worse. RIP.
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