Macroeconomics Case Study

Greenspan’s Economic Policies: Managing Through Booms and Busts

OR

Abstract:
Dr Alan Greenspan is the Chairman of the Federal Reserve of the US and also heads the Federal Open Market Committee (FOMC), the Fed's principal monetary policy making body. He has been at the centre of US monetary policy decisions since 1987, when he was first appointed to the board. He took office for a fourth term on June 20 th 2000. Over his 17-year stint as Chairman of the Fed, he has led the economy through several booms and busts. Quite a few people regard him as the man who gave the US economy its longest boom in its history since the October 1929 crash. Dr Greenspan was conferred knighthood by Britain's Queen Elizabeth in 2002, for his contribution to the global economic stability.

Pedagogical Objectives:

• To discuss the Fed's actions, under Dr Greenspan through July 1990-March 1991 recession, the boom of the 1990s, and the recession in 2001
• To discuss the prevalent conditions that could have been the premise on which such decisions were made.

Keywords : Alan Greenspan, US Monetary Policy, Greenspan's economic policies, US Federal Reserve Chairman, Booms and busts, 1990-1991 recession, 1990s boom, Recession in 2001, Southeast Asian crisis, Fiscal Policy Case Study, Unemployment and inflation, Irrational exuberance, Short-term interest rates, US economy, Gross domestic product, Trade, fiscal, current account deficits