Alan Greenspan, the former Federal Reserve chairman who shaped economic policy for nearly two decades, has died at the age of 100. His passing marks the end of an era for global finance, with British economists leading tributes to a figure whose influence transcended national borders.
Greenspan, who served as Fed chair from 1987 to 2006, was known for his opaque language and laissez-faire approach. He steered the US through the 1987 stock market crash, the dot-com bubble, and the aftermath of 9/11. His tenure is often credited with fostering economic stability but also criticised for policies that contributed to the 2008 financial crisis.
British economists have acknowledged his global impact. Lord Mervyn King, former Bank of England governor, hailed Greenspan as "a giant of central banking whose insights into the psychology of markets were unparalleled." Diane Coyle, professor of public policy at Cambridge, said: "He embodied the confidence of an era when we believed technology and deregulation would deliver perpetual growth."
Greenspan's philosophy was rooted in the belief that markets self-correct, a view that became controversial as income inequality rose and financial systems grew fragile. Despite this, his role in expanding global trade and overseeing the rise of digital finance is undeniable.
His death invites reflection on the fragility of modern economics. As we grapple with AI-driven markets and climate risks, Greenspan's legacy serves as a cautionary tale. He was a visionary who understood data but perhaps underestimated human greed. The world he helped build is now evolving faster than ever, questioning whether the old models of central banking are obsolete.
Greenspan's life spanned the Great Depression, the birth of the internet, and the dawn of algorithmic trading. For better or worse, he was the quiet architect of the financial world we inhabit today. His silence now speaks volumes about the uncertainties ahead.
