Alan Greenspan Essay

This essay has a total of 1784 words and 8 pages.


Alan Greenspan




Alan Greenspan
Alan Greenspan, the chairman of the Federal Reserve, has always fascinated the financial
community. Whatever he says can make or break the markets. He is a highly educated
economist with many years of experience. People seek for his advice and obey his
judgments. His proclamations are repeated and expounded upon. Greenspan is loved,
feared, and never ever questioned. As a result of being a strong chairman of the Fed, he
has made a difference the U.S. economy through his way of dealing with inflation. Also,
the presidency no longer counterbalances or even criticizes the Fed. First of all, we
will consider his background.

Alan Greenspan was born on March 6, 1926, in New York City. He received a B.S. in
economics in 1948, an M.A. in economics in 1950, and a Ph.D. in economics in 1977, all
from New York University. Also, Dr. Greenspan also has performed advanced graduate study
at Columbia University (Board of Governors par. 2) He taught economics at New York
University from 1953 to 1955 and formed a consulting firm in 1954 called
Townsend-Greenspan & Co., Inc. Dr. Greenspan has received many honorary degrees from
Harvard, Yale, Pennsylvania, Leuven (Belgium), Notre Dame, Wake Forest, and Colgate
universities. Furthermore, he has received numerous awards such as the Thomas Jefferson
Award for the Greatest Public Service Performed by an elected or appointed official
in1976, and election as a Fellow of the American Statistical Association, in1989 (Board of
Governors par. 9)

The novelist Ayn Rand influenced Dr. Greenspan. He was deeply influenced by her
philosophy of objectivism, which exalts laissez-faire capitalism and promotes “rational
selfishness,” the belief that people should live for their own rational self interest. At
Rand’s insistence, he became an adviser to Richard Nixon during the 1968 presidential
campaign. He advised President Nixon informally until he was made chairman of the Council
of Economic Advisers in 1974 under President Ford. He served during the Ford
Administration from 1974 to 1977. During this time, his policies were credited with
reducing inflation but leading to recession and may have contributed to Ford’s defeat for
reelection (Encarta par 1). From 1981 to 1983 he served as Chairman of the National
Commission on Social Security Reform. Other previous presidential appointments include
the President’s Foreign Intelligence Advisory Board, the Commission of Financial Structure
and Regulation, the Commission on Financial Structure and Regulation, the Commission of an
All-Volunteer Armed Force, and the Task Force on Economic Growth (Board of Governors par.
5).

Dr. Greenspan has served in many corporate and noncorporte positions. In recent years he
has served as a Corporate Director for Aluminum Company of America (Alcoa); Automatic Data
Processing, Inc.; General Foods, Inc.; J.P. Morgan & Co., Inc.; Mobil Corporation; and The
Pittston Company. Some of his noncorporate positions include Member of the Board of
Trustees, The Rand Corporation; Director, Institute for International Economics; Member of
the Board of Overseers; and Vice Chairman and Trustee, Economic Club of New York (Board
of Governors par. 6,7).

There are a few interesting facts about his personal life and personality. He was a
newlywed at the age of 71, some 44 years after his first marriage was annulled. He was a
musician in the 1940s before turning to a life of number crunching. Although he is an
admirer of technology, he drafts his speeches in longhand. In addition, he is famous for
not speaking at parties. One hostess observed that he would nod a lot and at the end of
the night people say, “Wow! That man is brilliant,” even though he had never said anything
(Chait 22). In fact, one congressman’s wife observed him at a party and in 35 minutes of
chatter, he had only spoken 22 words. Most of the words were directed towards the person
serving the hors d’oeuvers. However, he still managed to leave a good impression because
the people who he had spoken to said that he was very “insightful”.

Currently, Alan Greenspan is serving his third four-year term, ending in June 20, 2000, as
Chairman of the Board of Governors of the Federal Reserve System. In addition, he serves
as Chairman of the Federal Open Market Committee; the System’s principal monetary
policymaking body (Board of Governors par. 1) President Ronald Reagan appointed Alan
Greenspan as Chairman on August 11, 1987. 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 (Encarta par. 3). He was
reappointed to the Board to a full 14-year term, which began February 1, 1992. He
opposed tax cuts, believing that they would contribute to the growing federal deficit.
Also, he supported President Clinton’s 1993 deficit-reduction programs because he believed
that spending cuts were far better than tax increases (Encarta par. 3). In fact, he gets
along better with the Clinton Administration than he ever did with its GOP predecessors.
In February 1993, Hillary Clinton invited Greenspan to sit next to her while President
Clinton gave his first State of the Union address. This close relationship between
Clinton’s Treasury Department and Greenspan represented something new. “Instead of baying
at the moon, the president had reconciled himself to this own ineffectuality (Chait 24).”
Now, making disparaging remarks about the Fed is taboo. Clinton’s acceptance has
consecrated Greenspan’s exalted status.

Alan Greenspan has had a recent transformation in the public mind. In 1994, he was
engineering a series of interest-rate increases, and the Federal Reserve chairman was
called a “zealot willing to strangle economic growth in pursuit of a chimerical goal of
zero inflation (Church par.1).” Today, many people are giving him credit for the happy
state of the U.S. economy. Economist Allen Sinai said, “The Greenspan Fed is the
all-time champion in American history (Church par. 1).” In 1996 and 1997 he didn’t do
much of anything to the interest rates. From February 1996 to December 1997, the Fed made
only one change in interest rates: a quarter-point increase in March of 1997. He resisted
Continues for 4 more pages >>




  • The federal reserve system
    The federal reserve system The Federal Reserve System I would like to start this paper by giving a clear definition of the federal reserve system: The Federal Reserve System most well known as “the Fed” is the central banking system and monetary authority of the United States. The Fed is made up of regional Federal Reserve banks and the Federal Reserve Board of Governors, which their main responsibility is to supervise and to examine the state-chartered member banks, also to regulate banks holdi
  • Why the Wall Street Bubble Must Burst
    Why the Wall Street Bubble Must Burst Why the Wall Street Bubble Must Burst? In 1938, and in the teeth of the longest and fiercest depression that the United States had ever known, capital spending hit an all time high. Thats right! In 1938 the men who owned America began to pour millions of Dollars into new plant and equipment as if there was no tomorrow. We dont think much about it today, because it has been a long time since the United States has experienced a real bone jolting economic slo
  • Year 2000 Computer Problem Y2K Bug
    Year 2000 Computer Problem Y2K Bug Less than two years until the year 2000. Two seemingly small digits may turn January 1, 2000 from a worldwide celebration into a universal nightmare. With computers mistaking the year 2000 for 1900, virtually all businesses that use dates will be affected. Not only will the companies be affected, but they are paying millions upon millions of dollars in order for computers to recognize the difference between the years 2000 and 1900. The year 2000 computer bug is
  • Adam smith
    adam smith Adam Smith Adam Smith was born in Kirkcaldy, Fife, Scotland. His exact date of his birth is unknown but he was baptized on June 5, 1723. At the age of fifteen, Smith began attending Glasgow University where he studied moral philosophy. In 1748 he began giving lectures in Edinburgh where he discussed rhetoric and later he began to discuss the economic philosophy of the “simple system of natural liberty” which he later proclaimed in his Inquiry into Nature and Causes of the Wealth of Na
  • Adam smith
    adam smith Adam Smith Adam Smith was born in Kirkcaldy, Fife, Scotland. His exact date of his birth is unknown but he was baptized on June 5, 1723. At the age of fifteen, Smith began attending Glasgow University where he studied moral philosophy. In 1748 he began giving lectures in Edinburgh where he discussed rhetoric and later he began to discuss the economic philosophy of the “simple system of natural liberty” which he later proclaimed in his Inquiry into Nature and Causes of the Wealth of Na
  • Economic Indicators
    Economic Indicators Principle Economic Indicators The million (or should we say \'billion\' now) dollar question is whether or not the United States\' economy will stay in it\'s record 107 month expansion (according to the index of leading indicators) or come out of the boom and take a downturn into a recession. Nobody, including the Chairman of the Federal Reserve, Alan Greenspan has a crystal ball to provide insight as to what will happen if interest rates are raised, lowered, or left alone. H
  • Evaluating Inflation
    Evaluating Inflation "Evaluating the Bull Market" Today it is almost impossible to pick up a financial journal without seeing news on the bull market that some consider to be overvalued. Overvalued or fairly valued, only the future will show the truth. Either way, this market is one that has shown greater run ups and returns, than any other market in history. (Reference Appendix #1a) Recently the Dow Jones Industrial Average has reached historical highs and then receded back to previous levels,
  • Macroeconomic Case Studies
    Macroeconomic Case Studies Economics 001A: Macroeconomics Macroeconomic Case Studies Stephen Rossi Economics 001A: M 6:30-9:15 Slowing the US Economy The article titled \'Fed Unlikely to Alter Course\' by John M. Berry of the Washington Post takes an interesting look at actions that Alan Greenspan his colleges of the Federal Reserve have been taking over the last 9 months to slow the economic growth of United States. The astonishing growth rate of 7.3% is fueled by an economy that is in the mids
  • Monetary policy
    Monetary policy International Dimensions to U.S. Monetary Policy Executive Summary Federal Reserve monetary policy has traditionally focused on the domestic economy. Over time, however, a number of significant trends have underscored the potential importance of the international dimensions of contemporary monetary policy. Such trends include the following: · Financial markets continue to become increasingly integrated internationally; capital is evermore mobile. · The U.S. dollar continues to re
  • None Provided1
    None Provided1 Principle Economic Indicators The million (or should we say \'billion\' now) dollar question is whether or not the United States\' economy will stay in it\'s record 107 month expansion (according to the index of leading indicators) or come out of the boom and take a downturn into a recession. Nobody, including the Chairman of the Federal Reserve, Alan Greenspan has a crystal ball to provide insight as to what will happen if interest rates are raised, lowered, or left alone. Howeve
  • Our future
    our future Our Economic Future When I first decided to take this class I felt there was not much that when into the predictions of stock prices and the future of your economy. It is clear now that there are at least six different factors that contribute to the movement of our capital markets. At the present time our market is in what the experts call a correction period which means that it has fallen at least ten percent from a record setting date. Our economy is mist of a record boom of a one h
  • The Economy during Election 2000
    The Economy during Election 2000 The General State of the United States Economy There are various reasons for the result of the recent stock market tumble. There is not just one direct cause, for instance, the recent presidential election. It is a result of both the 2000 election and simply just a natural course of events that generally approaches once prosperity reaches a certain level. Whether or not this tumble will make a recovery, we really don’t know? Because of this, the word recession ha
  • The Federal Reserve
    The Federal Reserve When you look up the word money in the dictionary, you get this as the definition: “A commodity, such as gold, or an officially issued coin or paper note that is legally established as an exchangeable equivalent of all other commodities, such as goods and services, and is used as a measure of their comparative values on the market.” Money has three basic functions: a medium of exchange, a measure of value, and a store of value. Goods and services are paid for in money and deb
  • The Future of the Economy in the year 2000
    The Future of the Economy in the year 2000 The economy has performed exceptionally well for the past several years, combining rapid growth and very low unemployment with declining inflation. “Not only has the expansion achieved record length, but it has done so with far stronger growth than expected,” stated Federal Reserve Chairman Alan Greenspan in his remarks to the National Community Reinvestment Coalition annual conference in Washington (Business Week, The McGraw-Hill Companies, Economic Ou
  • Treatise
    treatise Daekwon the chef and Rza Shogun, Sergio Suarez, Sylvia Lin, Anne-Sophie Young Economics Final Report A Treatise on the Value of Economic Indicators The US Economy and Economic Indicators The United States economy is the strongest and the most affluent in the world. Besides having the highest GDP (Gross Domestic Product), the United States has a complex system of regulating economic policy and controlling the money supply. The system also regulates banks and financial institutions, and e
  • Greenspan
    Greenspan Federal Reserve Board Chairman Alan Greenspan vows to promote “low and stable inflation.” The main goal of the U.S. economy is to maintain price stability. This reduces the likelihood that imbalances could develop that would ultimately undermine the record economic expansion that the U.S. is currently having. The United States has two basic goals for its economy: to promote maximum output and employment and to promote stable prices. In the long run, the level of output and employment i
  • Y2k bug
    Y2k bug Less than one year until the year 2000, two seemingly small digits may turn January 1, 2000 from a worldwide celebration into a universal nightmare. With computers mistaking the year 2000 for 1900, virtually all businesses that use dates will be affected. Not only will the companies be affected, but also they are paying millions upon millions of dollars in order for computers to recognize the difference between the years 2000 and 1900. The year 2000 computer bug is a huge problem that ou
  • Banking
    Banking Banking So Much for That Plan "More than 70% of commercial bank assets are held by organizations that are supervised by at least two federal agencies; almost half attract the attention of three or four. Banks devote on average about 14% of their non-interest expense to complying with rules" (Anonymous 88). A fool can see that government waste has struck again. This tangled mess of regulation, among other things, increases costs and diffuses accountability for policy actions gone awry. Th
  • Basic Psycology
    basic Psycology Bibliography & Reading List Alajouanine, T. :* Aphasia and artistic realization. Brain. 1948 71:229-241. Alvin, J. :* Music Therapy. London: John Baker 1966 Amato, I. : Muscle melodies and brain refrains: Turning bioelectric signals into music. Sciences News. April 1989 135:202-203. Arnheim, R. :* New essays on the psychology of art. Berkeley and Los Angeles: University of California Press. 1986 Baer, T., Gore, J. C., Gracco, L.C., & Nye, P. W. (1991). Analysis of vocal tract sha
  • Evolution of the central bank
    Evolution of the central bank Final Paper Evolution of the Central Bank An important idea that the revolutionary United States originated is the separation of powers. That idea applies not only to a nation’s government but also her central banking system. Like the government itself, a central bank requires autonomy from the government while exercising influences on each other. The complementary effect leads to a successful national economy. In analyzing the history and development of the Bank of
  • FISCAL POLICY
    FISCAL POLICY Fiscal policy and monetary policy, which is concerned with money, are the two most important components of a government’s overall economic policy, and governments use them in an attempt to maintain economic growth, high employment, and low inflation. Fiscal policy is expansionary when taxation is reduced or public spending is increased that stimulate total spending in the economy. Expansionary policy might occur when a government feels its economy is not growing fast enough or unem
  • FISCAL POLICY
    FISCAL POLICY Fiscal policy and monetary policy, which is concerned with money, are the two most important components of a government’s overall economic policy, and governments use them in an attempt to maintain economic growth, high employment, and low inflation. Fiscal policy is expansionary when taxation is reduced or public spending is increased that stimulate total spending in the economy. Expansionary policy might occur when a government feels its economy is not growing fast enough or unem
  • Milton Friedman
    Milton Friedman Dr. Friedman insisted I use national income data (instead of GDP) for measuring economy size. He continually stressed the necessity of recognizing the add-on load to the economy of regulatory compliance costs. And, don\'t forget to include your data sources, he said. Comment to assist your readers, but show them the hard data as your base. And, don\'t get side-tracked by what other nations are doing - - make all comparisons to America\'s own history. Good advice. In his letters D
  • Nothing2
    nothing2 The Policy Reaction After the largest one day drop in the market in history, the Federal Reserve took immediate steps to increase the supply of liquidity in the market. The goal was to prevent bankruptcies, which would eventually hurt the real economy, by making loans to the investors than were in danger of running out of money. The strategy appeared to have worked, and the Fed certainly earned it\'s title of "lender of last resort". Policy makers themselves were also quick to respond.
  • The Fed
    The Fed Federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the Federal Reserve Board will decide whether or not to tighten monetary policy at the Federal Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. While raising the Federal Funds and Discount Rates could, in the long run, lead to higher interest rates, many people worry that the potential for an overheated economy is high, and there is lit
  • Y2K3
    Y2K3 With less than a year until the year 2000. Two seemingly small digits may turn January 1, 2000 from a worldwide celebration into a universal nightmare. With computers mistaking the year 2000 for 1900,almost all businesses that use dates will be affected. Not only will the companies be affected, but they are paying millions upon millions of dollars in order for computers to recognize the difference between the years 2000 and 1900. The year 2000 computer bug is a huge problem that our world m
  • Busniess
    Busniess Improving personal communications is very important to today in the fast moving world. The communication process is very important, it is estmated that 80 percent of messages get deport” For better results replace “You statements” with “I statements.” Say I’m concerned...That will bring the person off of the defensive approch. Also discuss things as they happen with out waitng. When you wait things can be losted or forgotten. If you work them out early it will be much easier for you and
  • Clinton Scandal
    Clinton Scandal The Clinton Sex Scandal Rare is a person that crosses the path of the White House without some emotion of envy or awe. This building epitomizes world leadership and unprecedented power. This renowned leadership may be the only association made by certain countries, while in the United States many see an other significance: Watergate, Whitewater, Kennedy\'s brutal and mysterious assassination, and today, Clinton\'s "zippergate" scandal. When the President of the United States take
  • Alan Greenspan
    Alan Greenspan Alan Greenspan Alan Greenspan, the chairman of the Federal Reserve, has always fascinated the financial community. Whatever he says can make or break the markets. He is a highly educated economist with many years of experience. People seek for his advice and obey his judgments. His proclamations are repeated and expounded upon. Greenspan is loved, feared, and never ever questioned. As a result of being a strong chairman of the Fed, he has made a difference the U.S. economy throug
  • Alan Greenspan1
    Alan Greenspan1 Since Alan Greenspan became chairman of the FED, the country\'s economy has reflected many positive results. He has done a terrific job. Allan is a very bright man who is always thinking of ways to prevent problems before they happen in the economic sector of the nation. All economists have been very content with his job just until now. In a recent Time magazine article called Is That Really You, Allan?disapproval about some new rules that this man has suggested for the economy
  • President Clinton appointed Alan Greenspan, a well
    fed : President Clinton appointed Alan Greenspan, a well-known chairman of the Federal Reserve Board, to his fourth term as the chairman of the nation\'s central bank. Alan Greenspan accepted the chance to lead the Federal Reserve Board for another four-year term beginning June of 2000. President Clinton praised Greenspan for starting a "New Era", an era with high technologies and productivity to advance. He is expected to push the level of prosperity to a higher stage. Alan Greenspan is known
  • Globalization and Its Effect on Poverty
    Globalization and Its Effect on Poverty Globalization and Its Effect on Poverty Globalization has helped raise the standard of living for many people worldwide. It has also, however, driven many deeper into poverty. Small businesses and third world countries are not capable of updating their technology as often as their larger, wealthier counterparts. Unable to compete with multinational firms and wealthy nations, small businesses and third world countries and forced to do business locally, nev
  • Japanese Yen
    Japanese Yen The Japanese Yen When Richard Nixon suspended the convertibility of US dollars to gold in 1972, the fixed rate between the dollar and the yen was exchanged for a floating rate. The international value of the yen rose sharply and is today one of the most attractive currencies on the market as it directs the world\'s second largest economy. The yen is controlled by a central bank known as the Bank of Japan or BOJ. This central bank is under the supervision of the Minister of Finance.
  • None Provided11
    None Provided11 Greenspan And the U.S Economy One year ago, individual investors were praising Alan Greenspan. Now they\'re condemning him. What exactly happened? The ever-so important tech stocks collapsed, that\'s what. Those companies that were the highest-flying, most-popular investments suddenly dropped to levels that those buying "great companies" did not think it possible for them to go. Where just nine months ago we were in danger of inflation, now the American economy is coming to a da
  • Less than two years until the year 2000. Two seemi
    Y2k Less than two years until the year 2000. Two seemingly small digits may turn January 1, 2000 from a worldwide celebration into a universal nightmare. With computers mistaking the year 2000 for 1900, virtually all businesses that use dates will be affected. Not only will the companies be affected, but they are paying millions upon millions of dollars in order for computers to recognize the difference between the years 2000 and 1900. The year 2000 computer bug is a huge problem that our world
  • 8220Got those OPEC Blues Again8221 and 8220Rationa
    8220Got those OPEC Blues Again8221 and 8220Rational Exuberance8221 “Got those OPEC Blues Again” and “Rational Exuberance” SUMMARY Since March of 1999, when the price of West Texas Intermediate crude oil was at a barrel, we have seen a steady increase in prices in all phases of the economy. OPEC, the organization that is largely responsible for setting production goals in the Middle East, was under fire to find ways to increase prices. OPEC members at this time “pledged to cut back the suppl
  • Adam smith
    adam smith Adam Smith Adam Smith was born in Kirkcaldy, Fife, Scotland. His exact date of his birth is unknown but he was baptized on June 5, 1723. At the age of fifteen, Smith began attending Glasgow University where he studied moral philosophy. In 1748 he began giving lectures in Edinburgh where he discussed rhetoric and later he began to discuss the economic philosophy of the “simple system of natural liberty” which he later proclaimed in his Inquiry into Nature and Causes of the Wealth of N
  • Adam smith
    adam smith Adam Smith Adam Smith was born in Kirkcaldy, Fife, Scotland. His exact date of his birth is unknown but he was baptized on June 5, 1723. At the age of fifteen, Smith began attending Glasgow University where he studied moral philosophy. In 1748 he began giving lectures in Edinburgh where he discussed rhetoric and later he began to discuss the economic philosophy of the “simple system of natural liberty” which he later proclaimed in his Inquiry into Nature and Causes of the Wealth of N
  • Ecomomic Forecast for 200
    Ecomomic Forecast for 200 Evaluating the bull market today, it is almost impossible to pick up a financial journal without seeing news on the bull market that some consider to be overvalued. Overvalued or fairly valued, only the future will show the truth. Either way, this market is one that has shown greater run ups and returns, than any other market in history. (Reference Appendix #1a) Recently the Dow Jones Industrial Average has reached historical highs and then receded back to previous lev
  • Econimic research
    econimic research 1. During the 1960\'s, The Soviet economy may have been growing at a rate of growth much faster that the West, but the Soviet GDP would have provided a poor statistic for determining the welfare of the soviet people for several reasons. The first reason that GDP would be obsolete for determining the welfare of the people is that during the 1960\'s, the Soviet Union was in fact Communist, so the people were only allotted whatever property or privilege the government would allow
  • Effects of Inflation
    Effects of Inflation THE IMPACT OF INFLATION Noen Loquiño Inflation is the most commonly used economic term in the popular media. A Nexis search in 1996 found 872,000 news stories over the past twenty years that used the word inflation. "Unemployment" ran a distant second. Public concern about inflation generally heats up in step with inflation itself. Though economists do not always agree about when inflation starts to interfere with market signals, the public tends to express serious alarm on
  • Federal Reserve and the Economic Bubble
    Federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the Federal Reserve Board will decide whether or not to tighten monetary policy at the Federal Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. While raising the Federal Funds and Discount Rates could, in the long run, lead to higher interest rates, many people worry that the potential for an overheated economy is high, and there is little ris
  • Feds Interest Rate Targets
    Feds Interest Rate Targets The Feds Transition from Monetary Targets to Interest Rate Targets Introduction The Federal Reserve appeared to be taking on a completely different stance in 1994 versus 1993. During 1993 there were no changes in the policy directives of the Federal Open Market Committee and short-term interest rates remained steady. In contrast, during 1994, the FOMC announced six different policy changes while at the same time making an adjustment to the short-term interest rate. T
  • Feds Transition from Monetary to Interest Rate Tar
    Feds Transition from Monetary to Interest Rate Targets The Feds Transition from Monetary Targets to Interest Rate Targets Introduction The Federal Reserve appeared to be taking on a completely different stance in 1994 versus 1993. During 1993 there were no changes in the policy directives of the Federal Open Market Committee and short-term interest rates remained steady. In contrast, during 1994, the FOMC announced six different policy changes while at the same time making an adjustment to the
  • Fiscal Policy
    Fiscal Policy Supposing the status quo of the United States today states that: there is no real unemployment, the consumer price index is rising at 2 percent annually, and the federal government budget deficit, 200 billion dollars, is equal to 5 percent of the gross national product. Now, the question is how and what changes will result from fiscal and monetary policy. For example, if legislation has just passed which holds government spending constant and raises personal income taxes enough to
  • Fiscal polocy
    fiscal polocy The Monetary and Fiscal Policies, although controlled by two different organizations, are the ways that our economy is kept under control. Both policies have their strengths and weaknesses, some situations favoring use of both policies, but most of the time, only one is necessary. The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors, currently headed by Alan Greenspan. One of the main responsibilities of the Federal Reserve System
  • The current state of the economy in the United Sta
    GDP The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession weve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, a
  • Impact of Inflation
    Impact of Inflation THE IMPACT OF INFLATION Noen Loquiño Inflation is the most commonly used economic term in the popular media. A Nexis search in 1996 found 872,000 news stories over the past twenty years that used the word inflation. "Unemployment" ran a distant second. Public concern about inflation generally heats up in step with inflation itself. Though economists do not always agree about when inflation starts to interfere with market signals, the public tends to express serious alarm onc
  • Macroeconomic Case Studies
    Macroeconomic Case Studies Economics 001A: Macroeconomics Macroeconomic Case Studies Stephen Rossi Economics 001A: M 6:30-9:15 Slowing the US Economy The article titled ‘Fed Unlikely to Alter Course’ by John M. Berry of the Washington Post takes an interesting look at actions that Alan Greenspan his colleges of the Federal Reserve have been taking over the last 9 months to slow the economic growth of United States. The astonishing growth rate of 7.3% is fueled by an economy that is in the midst
  • Monetary and fiscal policy
    monetary and fiscal policy The Monetary and Fiscal Policies, although controlled by two different organizations, are the ways that our economy is kept under control. Both policies have their strengths and weaknesses, some situations favoring use of both policies, but most of the time, only one is necessary. The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors, currently headed by Alan Greenspan. One of the main responsibilities of the Federal R