Product Description

The most remarkable thing that happened to the world economy after 9/11 was ... nothing. What would have once meant a crippling shock to the system was absorbed astonishingly quickly, partly due to the efforts of the then Chairman of the Federal Reserve Board, Alan Greenspan. The post 9/11 global economy is a new and turbulent system — vastly more flexible, resilient, open, self-directing, and fast-changing than it was even twenty years ago. The Age of Turbulence is an incomparable reckoning with the nature of this new world — how we got here, what we're living through, and what lies over the horizon, for good or ill, channelled through Greenspan's own experiences working in the command room of the global economy for longer and with greater effect than any other single living figure.

Product Details

• Amazon Sales Rank: #14309 in Books
• Published on: 2008-09-09
• Original language: English
• Binding: Paperback
• 608 pages

From the Publisher
Shortlisted for the Financial Times/Goldman Sachs Business Book of the Year Award 2007

About the Author
Alan Greenspan was born in 1926 and reared in the Washington Heights neighborhood of New York City. After studying the clarinet at Juilliard and working as a professional musician, he earned his B.A., M.A. and Ph.D. in Economics from New York University. In 1954, he co-founded the economic consulting firm Townsend-Greenspan & Co. From 1974 to 1977, he served as Chair of the Council of Economic Advisers under President Gerald Ford. In 1987, President Ronald Reagan appointed him Chairman of the Federal Reserve Board, a position he held until his retirement in 2006.

Customer Reviews

A central Banker reminisces, comments on present turbulence and reflects on the future
Alan Greenspan as chairman of the Federal Reserve for almost two decades was at 'the commanding heights' of policy making in the world's most powerful economy. During his tenure the American Economy enjoyed remarkably good health which contributed to the almost iconic status of the author.

Interestingly for a banker, the book is excellent in that it is both intelligently written and pleasantly read. On occasions it is lively and candid. In this regard the author criticises President Bush for not exercising restraint in public spending while asserting that the Iraq war was largely about oil.

The first half of the book comprise reminiscences of the author while in the balance he reflects on the main economic issues which will confront governments in the decades to come.

The author relates America's economic history since the 1950s through his experience in business and in government and at the Federal Reserve Board. He comments on America's Presidents from Nixon to Bush and British Prime Ministers from Margaret Thatcher to Tony Blair.

Compared to only twenty years ago, the new financial world is turbulent - hence the title of the book - more flexible, resilient, open and fast changing.

Reflecting on the future the author speculates on China's prospects, Russia's prospects, Latin America's prospects, demographics, corporate governance, inequality, energy and the like.

Mr Greenspan has been criticised for not acting pre-emptively by keeping interest rates low for too long and thus precipitating bubbles in the stockmarket and real estate. He acknowledges the criticism but maintains his stance.

This popular book should appeal to a wide readership interested in World Economics

Interesting memoir of former Fed Chairman beleaguered by current developments
In light of the credit crisis, many blame former US Federal reserve chairman Alan Greenspan for the current malaise in the world economy. However, the man himself chooses to describe it as a once in century type event. Caught in the debate is this memoir of his which went into print barely months after credit bubble burst.

Greenspan unquestionably played a key role in how the US economy as well as the world economy has panned out for over the last five decades. Bearing that in mind this book deserves respect and it does not disappoint. It is engaging and interesting. The author clearly acknowledges that he conveys his understanding of the world in context of his own experiences.

Essentially, the book dwells on Greenspan's illustrious career in the first half and his thoughts on the economy and monetary policy in the second. A trawl through Greenspan's career is highly readable containing bits about how he found his way into central banking and dealt with not just a succession of US presidents from Ford to Bush, but incoming and outgoing administrations as well. It is packed with anecdotes about anything in government circles from Greenspan meeting Margaret Thatcher to conversing with Rush Limbaugh about the Mexican crisis.

From there on to the latter stages of the book, one gradually gets an insight into the former Fed Chairman's thoughts, the influence of Adam Smith on him and his vivid description of the "failure of Keynesian economic models." For those claiming Greenspan had a preference for keeping rates artificially low, there's plenty on ammunition as he admits his liking for "cutting interest rates to make it easier for people to borrow and spend." However, in his defence, Greenspan explains how he kept the recession short via low interest rates following the dotcom bubble and kept them low until he saw an economic recovery.

His problem was that by the time the Fed raised the rates it was already too late and seeds of the current economic malaise had been sown. There is a bit of bravado in his writing which does unravel during current market conditions. For instance, he notes: "Many economists credit central bank monetary policy as the key factor in the last decade's reduction in inflation worldwide." With both economists and central bankers equally foxed and staring at deflation, such statements now seem to be a bit over the top.

Clinton and Greenspan both share some of the blame for the current crisis. This emerges in Chapter 7 of the book which is a fascinating read. Throughout the narrative Greenspan endorses repeal of the Glass-Steagall Act by Clinton in 1999 which ensured complete separation of between commercial banks and investment banks and so began the cycle of high risk taking for high returns.

Furthermore, Clinton's policy of beefing up the Community Reinvestment Act (1977) dwelling on relaxation of rules for mortgage lending fanned the subprime market, which hitherto accounted for less than 5% of all borrowing but rose to 30% by the time Greenspan penned the final thoughts for this book.

In summation, the author perhaps wanted this book to be the celebration of his career. Regrettably, it has rather become an insight into what and where monetary policymakers, bankers and those in financial circles tripped-up.

This should not discount Greenspan's work and his life in public service. He was player in what was to unfold and for the readers he provides a vivid account for them to draw their own inferences. I feel it is a decent book. However, it's prudent to mention that I did find myself frequently disagreeing with the great man's take on the World Economy.

An interesting and timely book!
Greenspan calls 'The Age of Turbulence' a 'psychoanalysis of himself.' It begins (first half) with his early life, describing the events that provided his learning experiences (including his desire to become a baseball player, then a jazz musician), and then goes to his life of implementing those lessons. Undoubtedly the most interesting material included Greenspan's evaluations of the Presidents he had worked with. His observations were not the platitudes one might have expected. 'Nixon was very smart, paranoid,' and was an equal-opportunity disparager of all ethnic groups. Ford was the most normal, and sometimes looked past politics to focus on the ethics of an issue. Reagan's ability to spout seemingless endless one-liners and stories was an 'odd form of intelligence,' according to Greenspan.

Greenspan felt his relationship with Bush I was a disaster, with the President eventually blaming Greenspan for his losing the election to Clinton. Clinton, however, was most like a soul-mate to Greenspan - very intelligent, and one constantly working to soak up knowledge and understanding. Greenspan also labeled Clinton's '93 economic plan that focused on reducing the deficit as an 'act of political courage.' Finally, Greenspan's assessment of Bush II was that he was incurious about the effects of his own economic policy, and that Greenspan's biggest frustration with Bush II was his failure to veto any spending bills. Greenspan was told that Bush thought he could better control Speaker Hastert and Whip Delay by signing the spending bills they, however, were never reticent to spend more money to help assure more Republican congressmen.

Greenspan also added that he disagreed with Bush II's supply-side economic thinking, and that his endorsement of 'A' tax cut during 2001 was just that - not an endorsement of Bush's plan. Another problem was that the plan had no adjustment mechanism in the event assumptions did not pan out and the deficit began to rear up again. On the other hand, Greenspan does not tell the whole story. According to Paul Krugman (New York Times, 9/17/07), he could have clarified himself a few weeks later when he appeared before a Senate committee on the same topic and evaded questions on whether the proposed tax cuts were too large. Two years later when more cuts were proposed, Greenspan did not object, and in 2004 he expressed support for making the Bush cuts permanent - accompanied by cuts in Social Security beneifts that he assured Congress in 2001 would not be threatened by the cuts.

The most incendiary comment in the book was clearly Greenspan's conclusion that the Iraq War II was all about oil. However, Greenspan is now 'clarifying' his statement to Greenspan having told the White House that removing Saddam was 'essential' to secure world oil supplies, and now stating (Washington Post interview, 9/17/07) that securing global oil supplies was 'not the administration's motive.' Greenspan was initially elated when Bush II won, and brought in his old friends Cheney and Rumsfeld. However, he noted that 'they changed,' and that he did not agree with Cheney's 'deficit's don't matter.' There also seemed to be little value placed on rigorous economic policy debate or weighing long-term policy consequences - policy-making was firmly in the hands of White House staff (Rove, et al).

A result was that Bush II's first two Treasury Secretaries (O-Neill, Snow) were essentially powerless. Summarizing, Greenspan saw the Republicans in '04 as having swapped principle for power, ending up with neither, and deserving to lose in '06. The 'good news' was that they did not try to interfere with monetary policy. Greenspan has come under increasing criticism himself for the current housing collapse and preceding bubble. His defense, in 'The Age of Turbulence,' was that the risk of broadening home ownership was worth the risk, that he didn't realize shady practices had grown so prevalent, and had tried raising mortgage rates in '04 and '05 by hiking rates on ten-year Federal notes (no impact). Finally, looking to the future, Greenspan sees a need to raise taxes on energy to encourage conservation, and a risk of increased inflation - already prices are rising in China. As for ethanol, even if all U.S. corn was converted to ethanol, it would only provide less than 20% of our current oil usage!!! I would also recommend, if you missed reading Tino Georgiou's masterpiece--The Fates--go and read it.