Greenspan, Alan

Greenspan, Alan (1926- ), American economist and head of the Federal Reserve Board, born in New York and educated at New York University. Greenspan also studied at Columbia University under the noted economist Arthur F. Burns. Greenspan taught economics at New York University (1953-1955) and also formed a consulting firm. He became an adviser to Richard Nixon during the 1968 presidential campaign. Greenspan then advised President Nixon informally until he was made chairman of the Council of Economic Advisers (1974). Greenspan remained at the council during the administration (1974-1977) of Gerald Ford, during which time his policies were credited with reducing inflation but leading to recession and may have contributed to Ford's defeat for re-election.

Returning to private life, Greenspan served on the boards of numerous national companies and as chairman of the National Commission on Social Security Reform (1981-1983). In 1987 President Ronald Reagan appointed him chairman of the Federal Reserve Board. A moderate Republican, he believed in deregulation of the banking industry and opposed government intervention in the economy, especially during the recession crisis of the early 1990s. In January 1992, Greenspan was appointed to a second term as head of the Federal Reserve Board. He opposed tax cuts, believing that they would contribute to the growing federal deficit. He supported President Bill Clinton's 1993 deficit-reduction programmes with the reservation that spending cuts were far better than tax increases. He was reappointed for a third term in February 1996, despite concerns about his tight monetary policy.