Alan Greenspan1 Essay

This essay has a total of 554 words and 3 pages.


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 have been highly critized.

The first new rule that Alan proposed was to keep down with producivity. In the article he
responds to this new rule by saying that too much efficiency pushes demand and becomes
inflationary. This meaning that too much is produced and stock prices are getting higher.
When this happens people begin to feel very wealthy and start to buy and buy like crazy.
This is something that can cause major inflation in a future. Alan's second rule is to
keep stock market prices not rising more than 5% to 6%. Greenspan comments that this has
to be done because shares should rise only as fast as the rest of the economy.

These two new rules proposed by Alan are mainly to protect the country from inflation and
many economists and other people don't understand it. The article also reflects that many
Continues for 2 more pages >>




  • Andrew Carnegie
    Andrew Carnegie Andrew Carnegie Essay written by aliciareagan@neo.tamu.edu A man of Scotland, a distinguished citizen of the United States, and a philanthropist devoted to the betterment of the world around him, Andrew Carnegie became famous at the turn of the twentieth century and became a real life rags to riches story. Born in Dunfermline, Scotland, on November 25, 1835, Andrew Carnegie entered the world in poverty. The son of a hand weaver, Carnegie received his only formal education during
  • Politics in the Guilded Age
    Politics in the Guilded Age Essay Topic 2 Politics in the Gilded Age Daniel Thompson 739 Words Discuss Politics in the Gilded Age. Include major political events and issues, and the roles of the bloody shirt, corruption, patronage, and reform movements. The term Gilded Age was named for a Mark Twain book. It meant covered with gold, and was applied to this period as a whole. This was a period of corruption in sordid politics. The Republicans and Democrats didnt really have strong opposing bel
  • Business management
    business management Task: Choose a company and identify all motivational (employee-centered) programs that the company has in place. Then ascertain the significance and objectives of these programs. Next provide a critique of these programs. Finally, recommend changes that will improve on the programs and/or new programs that will better meet the objectives articulated above. Overview: The company that I have chosen as the subject of my research is the AAA Travel Agency. More specifically, I hav
  • Business overseas
    business overseas Spain Geography & Location Spain is the second largest country in the EU. The territory of Spain covers most of the Iberian Peninsula; which it shares with Portugal and also includes the Balearic Islands in the Mediterranean, the Canary Islands in the Atlantic Ocean, and the North African cities of Ceuta and Melilla. In the north it is bordered by the Cantabrian Sea, France and Andorra; in the east and south-east by the Mediterranean; in the south by the Straits of Gibraltar; i
  • Cannington
    cannington Cannington Remuneration Policy Investigation. The organisation studied for the purpose of this investigation is Broken Hill Proprietary / Limited (B.H.P.). B.H.P. is Australia’s largest company and was ranked 125th on the fortune global 500 list of the worlds largest industrial companies in 1993. The company was incorporated in 1885 and began mining silver , lead and zinc at Broken Hill in NSW Cannington is BHP’s latest mine which is still yet to officially open, the mine was a Greenf
  • Country Risk Analysis
    Country Risk Analysis In the effort to reduce company risk while simultaneously expanding operations, the firm should consider expansion into a new geographic market. By taking advantage of the unique attributes of the Irish economy and aligning them with the characteristics of this company, the potential to maximize shareholder wealth improves while the risk exposure of the company declines. By expanding our information technology operations into Ireland, this risk/return strategy can be succes
  • Employee attitudeOrganizational Behavior
    Employee attitudeOrganizational Behavior Introduction A happy worker makes for a good worker you say? Well, United Airlines had somewhat of an “all for one” employee attitude in July 1994. They announced the purchase of their own company for which they work for billion through ESOP (Employee Stock Ownership Plan). So now, in the case of United Airlines, there obviously is a soar in employee productivity and spirits. Stocks have risen 120% due to this buyout (almost three times higher than the
  • Employee Retention
    Employee Retention In 1999 employee turnover shot to its highest level in nearly two decades. On average, 1.2 % of the workforce left their jobs each month last year. This did not include departures due to layoffs, downsizing, or departures of temporary staff. Job turnover is soaring for a few reasons. One is definitely the strength of the economy. If companies need to find workers they can raise salaries, which increases the likelihood that someone will leave a job for one that pays more. Anoth
  • European Union
    European Union Assignment on the European Union 1. Winston Churchill took the first step towards a European Union in 1946; he called for a "United States of Europe". This Union was going to be very strong, and it has developed some very important decisions since 1946. In 1948, the Congress of Europe brought all the European movements together in The Hague. The first really big change that EU accomplished took place in 1950. The Treaty of Rome was signed and that was the beginning of EEC, the Eur
  • Fed and Monetary policy
    Fed and Monetary policy Justin McVay Period 4 Macroeconomics Term Paper FEDERAL RESERVE AND MONETARY POLICY Monetary policy affects the economic and financial decisions of virtually all of us from workers to borrowers to investors (Rukeyser 105). Louis Rukeyser wrote, "If we want monetary policy to play its proper role in a true national economic reconstruction, the authentic task is to get the Fed to stop bouncing like a Chinese Ping-Pong ball, switching every few months between the inflationar
  • Foreign exchange market
    foreign exchange market Introduction The foreign exchange market is one of the most important financial markets. It affects the relative price of goods between countries and so can affect trade. It means that it affects the price of imports and so affects a country’s price level (inflation rate). It also affects the international investment and financing decision. In this project, we will try to find why exchange rate would give many risks to a company and how a company can hedge itself. Definit
  • Foreign market entry
    foreign market entry 1.0 Objectives The author’s objective in this article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market. 2.0 Central Theory The central theory introduced in this article is developed based on a comprehensive frame
  • Free Trade Vs Protectionism
    Free Trade Vs Protectionism Free Trade n Free trade is a policy by which a government does not discriminate against import or export, and it does not imply that a country abandons all tariffs and duties of imports and exports. The conceptual case for free trade is based on an argument that the division of labor among countries leads to concentration, greater effectiveness, and higher output. Benefits of Free Trade n Free trading partners are less likely to go to war with each other n A nations c
  • Japanese Economy
    Japanese Economy How has Japan fared with it’s economies booms and slumps? This investigation is based on stage 4 unit 1 of the Business and Economics A-level course, “What happens in booms and slumps?”. The unit focuses how people and businesses are affected by booms and slumps, why they continuously appear and the governments role in helping to control these two events. The investigation will therefore focus on Japan and the way booms and slumps affect the Japanese businesses and people. To de
  • Management 201
    management 201 Task: Choose a company and identify all motivational (employee-centered) programs that the company has in place. Then ascertain the significance and objectives of these programs. Next provide a critique of these programs. Finally, recommend changes that will improve on the programs and/or new programs that will better meet the objectives articulated above. Overview: The company that I have chosen as the subject of my research is the AAA Travel Agency. More specifically, I have int
  • Motivation Theory in Business
    Motivation Theory in Business "B-12, G-47, I-24, O-51, I-5, N-36&&&&.BINGO!!!!!!" A simple game of bingo, if analyzed closely, can be shown to be a tedious task consisting of a repetitive action that occurs after being prompted by a repetitive stimulus. The skill level needed to make that action is low, and the variability in the rules of the game rarely changes. This game is not unlike many of the jobs that can be classified as having low motivational potential scores (Hackman, et al). So why
  • Retailing in the internet
    retailing in the internet INDUSTRY IN GERMANY Country Issues Country issues related to Germany are addressed in four contexts. The areas of consideration are (1) cultural, social, and demographic trends and concerns, (2) political/governmental concerns, (3) exchange rate issues, and (4) macroeconomic issues. Cultural, Social, and Demographic Trends and Concerns Germany is the slightly larger then the combined size of Ohio, Pennsylvania, and New York. (137,691 square miles.) Germany is a nation o
  • The euro
    The euro In Europe, the debut of the euro is widely hailed as the most important event affecting the international monetary landscape since the breakup of the Bretton Woods System in 1971 to 1973, or since the Bretton Woods Agreement in 1944, or maybe even since the founding of the Federal Reserve System in 1913. It has become a contest for European officials and commentators to see who can push the analogy back furthest in time. Eminences elsewhere in the world have similarly greeted the euro w
  • 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
  • The risk management of asset and liabilities by de
    The risk management of asset and liabilities by developing countries The risk management of assets and liabilities by developing countries. Greater access to the international financial markets has bestowed many benefits on developing countries, but it has also exposed them to the vicissitudes of these markets. In addition to the macroeconomic challenges posed by large, potentially volatile flows, the sizable external foreign currency debt of many developing countries makes them vulnerable to sw
  • Zero Inflation
    Zero Inflation Introduction Hyper inflation has plagued most of the world’s developing countries over the past decades. Countries in the industrialised world, too, have at times duelled with dangerously high inflation rates in the post WWII era. With varying degrees of success, all have employed great efforts to bring their inflation rates within acceptable limits. Generally, a moderate rate of inflation has been the ultimate goal. More recently, however, a few countries have pursued policies th
  • Software and copyright
    Software and copyright Current copright and patent laws are inapropriate for computer software; their imposition slows down software development and reduces competition. From the first computer as we know them, the ENIAC, computer software has become more and more important. From thousands of bytes on miles of paper to millions of bytes on a thin piece of tin foil sandwitched between two pieces of plastic, software has played an important part in the world. Computers have most likely played an i
  • History of the Euro
    History of the Euro It has been a long time in the making, but scheduled plans have marked January 1, 2002 as the date that the new Euro currency banknotes and coins will be introduced in Europe. July 1, 2002 is the designated day that the changeover to a monetary union will be complete. The discussion as to the risks and benefits of this monetary union has been all the talk around the world. This union will have vast and far-reaching effects that will touch not only the countries in the union,
  • Asia
    asia A large economic downturn in East Asia threatens to end its nearly 30 year run of high growth rates. It is hard to understand what these declines will actualy do to the world market. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt, loose government regulation, and corruption. Due to East Asia\'s large impact on the wor
  • Asian economic history
    Asian economic history Brief Economic History and Government Policy Korea was one of the poorest countries in world after experiencing two wars. World War II and Korean war (1950 1953). The country even experienced a food shortage so that it had to heavily rely on the foreign aid. Yearly per capita consumption was a mere as late as 1965. However, since 1965, Korea has been transformed from its underdeveloped agricultural economy to a leading Newly Industrializing Country. Between 1965 and 19
  • Asian economic history
    Asian economic history Brief Economic History and Government Policy Korea was one of the poorest countries in world after experiencing two wars. World War II and Korean war (1950 1953). The country even experienced a food shortage so that it had to heavily rely on the foreign aid. Yearly per capita consumption was a mere as late as 1965. However, since 1965, Korea has been transformed from its underdeveloped agricultural economy to a leading Newly Industrializing Country. Between 1965 and 19
  • Balance of Payments Current Account Deficit
    Balance of Payments Current Account Deficit Essay Ken Hutchinson In 1994 the UK had a Balance of Payments current account deficit. Explain the possible effects that this deficit might have upon the economy Discuss what, if anything the UK Government could have done to reduce or eliminate this current account deficit. The balance of payments is a record of one country\'s trade dealings with the rest of the world. Any transaction involving UK and foreign citizens is calculated in sterling (UK poun
  • Brazil An Economy Recovering From Chaos
    Brazil An Economy Recovering From Chaos Brazil earned the reputation of being a “miracle economy” in the late 1960s when double-digit annual growth rates were recorded and the structure of the economy underwent rapid change. Since 1981, however, Brazil’s economic performance has been poor in comparison to its potential. The country’s dramatic reduction in output growth, which averaged an annual GDP growth of only 1.5 percent over 1980-93, reflected its inability to respond to the events of the l
  • Chinas Economics
    Chinas Economics Introduction For various reasons, China has always been an important country in the world. With its increasing large population, it was determined by other countries that is has a lot of economic potentials. In just one decade and a half, China has transformed itself from a giant that use to live in poverty into a wealthy powerhouse to the world economy. With one-fifth of the world¡¦s population, China is now producing 4% of world merchandise and a proportion of global productio
  • Classical vs Keynes
    Classical vs Keynes The Classical model of the economy says that all markets always clear. The labor market failing to clear does not exist in the Classical model because of competitive exchange equilibrium in which prices and quantities always adjust perfectly. The Classical model is of a closed economy and the variables are real output, employment, real and nominal wages, the price level, and the rate of interest. It is easier to understand the classical model using five diagrams that are numb
  • ECONOMIC AND FINANCIAL DEVELOPMENTS IN 2000
    ECONOMIC AND FINANCIAL DEVELOPMENTS IN 2000 ECONOMIC AND FINANCIAL DEVELOPMENTS IN 2000 The expansion of U.S. economic activity maintained considerable momentum through the early months of 2000 despite the firming in credit markets that has occurred over the past year. Only recently has the pace of real activity shown signs of having moderated from the extremely rapid rate of increase that prevailed during the second half of 1999 and the first quarter of 2000. Real GDP increased at an annual rat
  • Economics
    Economics Does greater economic openness between nations lead towards economic growth and convergence? Greater economic openness between nations does lead towards economic growth and convergence. All of the first world countries demonstrate greater economic openness then third world countries demonstrate. Although economic openness may be a solution to gain economic growth and convergence, free trade may not be the answer. There are two different views on free trade; the conservative view and th
  • Economics1
    Economics1 The aim of this essay is not to agree with or refute the statement made by Douglass North. The purpose of this essay is to identify the key points of the statement and discuss with relation to the institutional evolution in the Australian financial and labour Markets. With this, it will attempt to conclude whether the statement has a relevance to the evolution of the financial and labour markets. The passage, taken from North’s paper Institutions has a relevance to Australia’s Financi
  • Economics
    Economics Does greater economic openness between nations lead towards economic growth and convergence? Greater economic openness between nations does lead towards economic growth and convergence. All of the first world countries demonstrate greater economic openness then third world countries demonstrate. Although economic openness may be a solution to gain economic growth and convergence, free trade may not be the answer. There are two different views on free trade; the conservative view and th
  • Economics1
    Economics1 The aim of this essay is not to agree with or refute the statement made by Douglass North. The purpose of this essay is to identify the key points of the statement and discuss with relation to the institutional evolution in the Australian financial and labour Markets. With this, it will attempt to conclude whether the statement has a relevance to the evolution of the financial and labour markets. The passage, taken from North’s paper Institutions has a relevance to Australia’s Financi
  • Economy and Life
    Economy and Life Whether it be through intensified media attention, or due to the efforts of prominent scientists and other members of society, we have become increasingly aware of the detrimental effects that technological advances in industry and agriculture have on the global environment. However, as Carl Sagan points out in “Pulling the Plug on Mother Earth” awareness is not enough, nor is society’s response to the catastrophic implications of environmental pollution rapid enough. Slowness t
  • Economy of jamaica
    economy of jamaica The Jamaican economy is an ailing economy and a prime example of an impoverished nation with an inadequate manufacturing infrastructure, limited nation and agricultural assets and declining foreign investments. With a decline in foreign investments Lee Bailey, President of Cruise Shipping Association who was a guest on the television program, “A Nation In Crisis” on November 2nd, 2000 at 8:30 pm live on T.V. J stated that with no water, no roads no infrastructure why would for
  • Fdic
    fdic U.S. monetary policy affects all kinds of economic and financial decisions people make in this country—whether to get a loan to buy a new house or car or to start up a company, whether to expand a business by investing in a new plant or equipment, and whether to put savings in a bank, in bonds, or in the stock market, for example. Furthermore, because the U.S. is the largest economy in the world, its monetary policy also has significant economic and financial effects on other countries. The
  • Federal Reserve System
    Federal Reserve System Saint Leo’s University THE FEDERAL RESERVE SYSTEM Economics Joan Mierzwa June 21, 2000 THE FEDERAL RESERVE SYSTEM CONTENTS I. INTRODUCTION 4 II. Federal Reserve System-Overview 5 III. History of the Federal Reserve Act and Amendments to 8 IV. Structure of the System 9 V. Board of Governors 10 VI. Monetary Policy and Effects of on the Economy 12 VII. Final Thoughts SELECTED BIBLIOGRAPHY n INTRODUCTION Why do a report on the Federal Reserve System? This is a question I went
  • Inflation Rates
    Inflation Rates The price of one currency in terms of another is called the exchange rate. The exchange rate affects the economy in our daily lives because it affects the price of domestically produced goods sold abroad and the cost of foreign goods bought domestically. “Mexicans use pesos, French use francs, Austrians use schillings, and this use of different monies by different countries results in the need to exchange one money for another to facilitate trade between countries”(Husted 315). W
  • International trade1
    international trade1 One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective coun
  • Ludvig Von Mises
    Ludvig Von Mises Ludwig von Mises: Defender of the Free Market Ludwig von Misis thoughts on human behavior, socialism, and money and credit have had a major impact on economic thought. He championed true free markets and is seen as a defender of liberty. Former President of the United States Ronald Reagan said “Ludwig von Mises was one of the greatest economic thinkers in the history of Western Civilization. Through his seminal works, he rekindled the flames of liberty. As a wise and kindly ment
  • 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
  • Malaysian Country Analysis
    Malaysian Country Analysis Malaysia A. Brief History § In the first century AD, the Malayan peninsula was prominent in int’l trade. § Conquered by the Portuguese in 1511, then the Dutch in 1641. § The British, who replaced the Dutch in 1795, developed large-scale productions of tin and rubber. § The Japanese invaded Malaysia during WWII. § Malaysia was formed after negotiating for independence from the British in September 16, 1963. B. Comparative Advantage (Early years up to pre-1980’s) § Natur
  • Milton Friedman and FreeMarket Capitalism
    Milton Friedman and FreeMarket Capitalism Milton Friedman and Free-Market Capitalism Milton Friedman is known worldwide for his belief in defending free-market capitalism and his faith that it can proficiently and impartially distribute wealth throughout a nation. Most of Friedman’s peers are not able to put that same amount of confidence in the ability of the market as he. Friedman has suspicions of government interference in the business of a nation’s economy. These suspicions are based on his
  • 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
  • Monetary Policy and the Economy
    Monetary Policy and the Economy Monetary Policy and the Economy Using the tools of monetary policy, the Federal Reserve can affect the volume of money and credit and their price—interest rates. In this way, it influences employment, output, and the general level of prices. a a a a a a a a a a a a a a a THE FEDERAL RESERVE ACT LAYS OUT the goals of monetary policy. It specifies that, in conducting monetary policy, the Federal Reserve System and the Federal Open Market Committee should seek “to pr
  • None Provided2
    None Provided2 1961-1963 John F. Kennedy was president during this time period and we were under Democratic leadership. Kennedy\'s first year in office brought him considerable success in enacting new legislation. Congress passed a major housing bill, a law increasing the minimum wage, and a bill granting federal aid to economically depressed areas of the United States. The most original piece of legislation Kennedy put through Congress was the bill creating the Peace Corps, an agency that train
  • None1
    none1 Introduction Hyper inflation has plagued most of the world’s developing countries over the past decades. Countries in the industrialised world, too, have at times duelled with dangerously high inflation rates in the post WWII era. With varying degrees of success, all have employed great efforts to bring their inflation rates within acceptable limits. Generally, a moderate rate of inflation has been the ultimate goal. More recently, however, a few countries have pursued policies that strive
  • Pakistan
    Pakistan A Portrait of the Death of an Economy My topic deals with Pakistan, its relationship with the IMF and World Bank, and its internal problems that are causing unemployment, poverty, economic crisis and hunger. I shall be analyzing the situation using the neo-classical theory, as it is what the economists of the Pakistan government and the IMF are using to alleviate the economic instability of the country. Situated in the sub-continent, Pakistan is a low-income country, with great promise