Alan Greenspan facts for kids
Quick facts for kids
Alan Greenspan
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| 13th Chair of the Federal Reserve | |
| In office August 11, 1987 – January 31, 2006 |
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| President | |
| Deputy |
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| Preceded by | Paul Volcker |
| Succeeded by | Ben Bernanke |
| Member of the Federal Reserve Board of Governors | |
| In office August 11, 1987 – January 31, 2006 |
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| President |
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| Preceded by | Paul Volcker |
| Succeeded by | Ben Bernanke |
| 10th Chair of the Council of Economic Advisers | |
| In office September 4, 1974 – January 20, 1977 |
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| President | Gerald Ford |
| Preceded by | Herbert Stein |
| Succeeded by | Charles Schultze |
| Personal details | |
| Born | March 6, 1926 New York City, U.S. |
| Died | June 22, 2026 (aged 100) Washington, D.C., U.S. |
| Political party | Republican |
| Spouses |
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| Education |
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| Scientific career | |
| Fields | Economics |
| Thesis | Papers on Economic Theory and Policy (1977) |
Alan Greenspan (born March 6, 1926, died June 22, 2026) was an important American economist. He was best known for being the head of the Federal Reserve, a powerful U.S. financial organization, from 1987 to 2006. He also worked as a private advisor for many companies.
President Ronald Reagan first chose Mr. Greenspan to lead the Federal Reserve in 1987. He was chosen again several times, serving for a very long time until he retired in 2006. He was known for being quiet in public, but many people saw him as a very important figure, almost like a "rock star" in the world of finance. Some politicians didn't agree with his ideas about government spending and taxes.
Some people believe that the Federal Reserve's policies under Mr. Greenspan, which made it easier to borrow money, contributed to economic problems like the "dot-com bubble" and the "subprime mortgage crisis." These events caused big financial challenges. However, Mr. Greenspan believed that these problems were part of bigger global trends, not just his policies.
Contents
Early Life and Education
Alan Greenspan was born in New York City on March 6, 1926. His family had roots in Romania and Hungary. After his parents separated, he lived with his mother and grandparents.
He went to George Washington High School and graduated in 1943. He was a talented musician, playing the clarinet and saxophone. He even studied music at the famous Juilliard School. During World War II, he was not able to join the military due to a health issue.
Later, he studied economics at New York University and earned his bachelor's and master's degrees. He also studied at Columbia University but left to focus on his growing work. He earned his Ph.D. in economics from New York University in 1977. His doctoral paper, which discussed rising housing prices, was later made private at his request.
Career Highlights
Before Leading the Federal Reserve
While studying, Mr. Greenspan worked at a Wall Street investment bank. He also worked as an analyst for a business research group called the National Industrial Conference Board.
For many years, from 1955 to 1987, he led his own economics consulting company, Townsend-Greenspan & Co. During this time, he also served as the head of the Council of Economic Advisers for President Gerald Ford.
He advised Richard Nixon during his presidential campaign. Mr. Greenspan also served on the boards of many large companies. He was also part of important groups that advised on foreign policy and finance.
Chairman of the Federal Reserve
| What I've learned at the Federal Reserve is a new language which is called "Fed-speak". You soon learn to mumble with great incoherence. |
| — Alan Greenspan |
On August 11, 1987, the U.S. Senate confirmed Alan Greenspan as the new head of the Federal Reserve. President Ronald Reagan had chosen him for this very important role.
Soon after he started, a big stock market crash happened in 1987. Mr. Greenspan quickly announced that the Federal Reserve would help keep the financial system stable. He was reappointed by President Bill Clinton, who often sought his advice on economic issues.
Mr. Greenspan believed in certain economic ideas, like controlling the money supply. He also helped organize U.S. financial aid for Mexico during a money crisis in the mid-1990s.
In 2000, he increased interest rates, which led to some criticism when the stock market later went down. Some economists argued that he should have acted sooner to prevent the market from getting too excited.
In 2001, he supported President Bush's idea for tax cuts, saying the country had enough extra money to do so and still reduce its debt.
After the September 11 attacks and some business problems in 2001, the Federal Reserve lowered interest rates to help the economy. Mr. Greenspan suggested that financial markets needed more rules. Some critics believed his policies caused prices of things like gold to rise too quickly.
Mr. Greenspan advised President George W. Bush's team on global issues. He believed that keeping oil flowing smoothly around the world was very important for the economy. He worried that disruptions to oil supplies could cause major problems for countries everywhere.
In 2004, President George W. Bush nominated him for a fifth term as chairman, which was a very rare honor. In a speech in 2005, Mr. Greenspan talked about complex financial tools called "derivatives." He noted that while these tools helped banks manage risks, he also had concerns about their potential dangers.
He did not support placing extra taxes (tariffs) on goods from China. Instead, he suggested helping American workers who might lose jobs due to trade with China through training and support programs.
In 2005, Mr. Greenspan announced he would retire on January 31, 2006. President Bush then chose Ben Bernanke to take his place. During his time as chairman, he rarely gave interviews on TV or radio.
After Leaving the Federal Reserve
After leaving the Federal Reserve, Mr. Greenspan started his own economic consulting company. He also took on an honorary role with the British government's treasury department.
In 2007, he predicted that the U.S. might face an economic slowdown (recession) soon. The next day, the stock market saw a significant drop.
He became a special advisor for a large investment company, PIMCO, sharing his knowledge about interest rates. Later in 2007, Deutsche Bank, another big financial company, also hired him as a senior advisor.
In 2008, a company called Paulson & Co., which manages large investments, also hired him as an advisor. Some people later connected the housing market problems to policies from his time at the Federal Reserve.
In 2009, Mr. Greenspan spoke to a U.S. Senate group. He supported a program that allows skilled workers from other countries to work in the U.S. He believed this was important as older workers retired.
Memoir: The Age of Turbulence
Mr. Greenspan wrote a book about his life and ideas called The Age of Turbulence, published in 2007. In the book, he shared his experiences in government and economics. He also discussed capitalism and global economic challenges.
In his book, Mr. Greenspan criticized President George W. Bush and other Republican leaders. He felt they spent too much money and created large government debts. He believed they put politics ahead of good economic choices.
He praised President Bill Clinton for focusing on long-term economic growth. He respected Richard Nixon's intelligence but found him to be a bit suspicious of others. He described Gerald Ford as a very normal president. For the future, Mr. Greenspan suggested improving education in the U.S. He thought this would help reduce the gap between high-income earners and other workers.
Objectivism Philosophy
In the 1950s, Mr. Greenspan became friends with the writer and philosopher Ayn Rand. He was introduced to her by his first wife. Rand gave him the nickname "the undertaker" because he often wore dark clothes and was quiet.
He became a follower of Rand's philosophy called Objectivism. He wrote articles for Objectivist newsletters and contributed essays to Rand's 1966 book, Capitalism: The Unknown Ideal. In one essay, he supported the idea of a gold standard for money.
During the 1960s, Mr. Greenspan taught a course on economics based on these ideas. Ayn Rand was present when he was sworn in as chairman of the Council of Economic Advisers in 1974. They remained friends until her death in 1982.
Some critics believed his actions at the Federal Reserve did not always match his Objectivist beliefs. However, Mr. Greenspan explained that in a democracy, leaders often have to make compromises. He believed that the U.S. did well without a central bank and with a gold standard in the past.
In 2008, he admitted that his belief in less regulation for free markets had some flaws. But he still believed that laissez faire capitalism was the best system. He said that mistakes came from how competitive markets were applied, not from the idea itself.
Personal Life
Mr. Greenspan was married to artist Joan Mitchell in 1952, but their marriage was ended after 10 months. He also dated journalist Barbara Walters in the late 1970s.
In 1984, he began dating journalist Andrea Mitchell. They were married in April 1997 by Supreme Court Justice Ruth Bader Ginsburg.
Alan Greenspan passed away on June 22, 2026, at the age of 100. He had been dealing with complications from Parkinson's disease.
Honors and Awards
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Presidential Medal of Freedom: This is the highest award a civilian can receive in the United States. President George W. Bush gave it to him in November 2005.
Department of Defense Medal for Distinguished Public Service: Awarded on January 23, 2006.
Commander of the Legion of Honour (France): Received in 2000.
Knight Commander of the Order of the British Empire (United Kingdom): Queen Elizabeth II gave him this honor on September 22, 2002.
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In 1976, Mr. Greenspan received the U.S. Senator John Heinz Award for Greatest Public Service. This award recognizes elected or appointed officials.
He was chosen as a fellow of the American Statistical Association in 1989. In 2000, he was elected to the American Philosophical Society.
Mr. Greenspan received the Dwight D. Eisenhower Medal for Leadership and Service in 2004. In 2005, he was the first person to receive the Harry S. Truman Medal for Economic Policy. In 2007, he received the Thomas Jefferson Foundation Medal in Citizen Leadership.
In 2012, he received the Eugene J. Keogh Award for Distinguished Public Service from NYU.
University Degrees and Speeches
| Location | Date | School | Degree | Gave Commencement Address |
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 Indiana |
May 21, 1995 | University of Notre Dame | Doctor of Laws (LL.D) | |
 Pennsylvania |
1998 | University of Pennsylvania | Doctor of Laws (LL.D) | |
 Massachusetts |
June 10, 1999 | Harvard University | Doctor of Laws (LL.D) | Yes |
 Connecticut |
1999 | Yale University | Doctor of Humane Letters (DHL) | |
 Scotland |
2005 | University of Edinburgh | Doctorate | |
 New York |
December 14, 2005 | New York University | Doctor of Commercial Science |
Books by Alan Greenspan
- 1993 Monetary Policy Objectives: midyear review of the Federal Reserve Board (1993)
- William Taylor Memorial Lectures 3: Global Risk Management (1996)
- The Quotations of Chairman Greenspan: Words from the Man Who Can Shake the World (2000)
- The Age of Turbulence: Adventures in a New World (2007)
- Finance and Economics Discussion Series: Sources and Uses of Equity Extracted from Homes (2013)
- Finance and Economics Discussion Series: Estimates of Home Mortgage Originations, Repayments, and Debt on One-to-Four-Family Residences (2013)
- The Map and the Territory: Risk, Human Nature, and the Future of Forecasting (2013)
- The Map and the Territory 2.0: Risk, Human Nature, and the Future of Forecasting (2014)
- Finance and Economics Discussion Series: Motor Vehicle Stocks, Scrappage, and Sales (2015)
- Capitalism in America: A History (2018)
See also
In Spanish: Alan Greenspan para niños
- List of United States political appointments across party lines
- Fedspeak
- Irrational exuberance
- Greenspan Commission
