This created an environment where investors were encouraged to take excessive risk because Fed monetary policy tended to inherently limit their potential losses in the event of a market downturn in an analogous way to buying put options on the open market.
Bernanke served until Like many other government officials, the success of Alan Greenspan's five terms as Chairman of the Fed will depend on who you ask. However, it is certainly true that Greenspan faced some massive challenges during his tenure, such as the stock market crash and the attacks on the World Trade Center.
Overall, Greenspan helped usher in a strong U. Opinion on how much his actions caused the economic recession that began shortly after his term ended varies. Federal Reserve History. Alan Greenspan. New American Library, Federal Reserve Board. Federal Reserve Economic Data.
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Personal Finance. Your Practice. Popular Courses. Monetary Policy Federal Reserve. Who Is Alan Greenspan? Greenspan's policy was defined by the Great Moderation, or the long-term maintenance of low, stable inflation and economic growth. The expansionary monetary policy of "easy money" attributed to Greenspan's tenure has been blamed in part for stoking the dot-com bubble and the financial crisis. Greenspan's time as chair began with the immediate challenge of dealing with the historic stock market crash.
Greenspan is considered by some to be hawkish in his concerns over inflation. He received criticism for focusing more on controlling prices than on achieving full employment. Alan Greenspan served as Chairman of the Fed from to , for a total of five terms. Who Appointed Alan Greenspan? Who Replaced Alan Greenspan?
How Old Is Alan Greenspan? Alan Greenspan was born on March 6, , making him 95 years old as of June Who Is Alan Greenspan's Wife?
Alan Greenspan married journalist Andrea Mitchell in Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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Related Terms The Great Moderation The Great Moderation was a period of decreased macroeconomic volatility in the United States from the mids to the financial crisis in Greenspan Put Definition Greenspan put was the moniker given to the policies implemented by former Fed Chair Alan Greenspan that halted excessive stock market declines.
It was the first time the man hailed for masterminding the world's longest postwar boom has accepted any culpability for the crisis that has engulfed the global banking system. During a feisty exchange on Capitol Hill, he told the House oversight committee that he regretted his opposition to regulatory curbs on certain types of financial derivatives which have left banks on Wall Street and in the Square Mile facing billions of dollars worth of liabilities.
As the crisis continued to depress global stockmarkets, the US treasury secretary, Henry Paulson, also offered a partial confession, admitting he ought to have anticipated a meltdown in the US mortgage industry widely blamed for triggering the crisis. He added: "I'm not saying I would have done anything differently. In prepared remarks before the House of Representatives, Greenspan, 82, who retired in , called the financial crisis a "once-in-a-century credit tsunami" and said it had "turned out to be much broader than anything I could have imagined".
He suggested his trust in the responsibility of banks had been misplaced: "Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity myself especially are in a state of shocked disbelief. The congressional committee's Democratic chairman, Henry Waxman, pressed him: "You found that your view of the world, your ideology, was not right, it was not working? Myners, who was chairman of Guardian Media Group, which publishes the Guardian, until he took the ministerial post three weeks ago, said the agency would have its own chief executive and board of directors.
But he admitted that the Treasury, the Bank of England and the Financial Services Authority were doing a "lot of preparatory work" in anticipation of further problems in the financial system.
Congressman Henry Waxman "My question is simple. Were you wrong? Greenspan "Partially
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