Kahn, Mejia

National Economic Markets

ECNM 477.41 Summer 2012

Federal Reserve Chairmans Impact on the United States Economy

September 6, 2012

Kahn, Mejia National Economic Markets, ECNM 477.41Summer 2012 July 8, 2012

Abstract Macroeconomics research paper analyzing the Federal Reserve Chairmans impact on the United States economy; covering the terms of the following Federal Reserve Chairmans: William McChesney Martin, Jr., Arthur F. Burns, Paul A. Volcker, Alan Greenspan, and Ben Bernanke. This research paper will cover the Federal Reserve structure, history, and overall purpose. Analyze how each Federal Reserve Chairman has influenced the United States economy, and discuss the most influential policy makers.

Kahn, Mejia The Federal Reserve System

On December 23, 1913, President Woodrow Wilson signed the Owen-Glass Act, creating the Federal Reserve System, an independent agency of the U.S. Government. Before the Federal Reserve began its operations in November 1914, United States banks did not have standardized banking practices. Under the terms of the first major banking reform to follow the Civil War, the Federal Reserve System was designed to keep the economy healthy through the formulation of U.S. monetary policy. As the nations money manager and central banking authority, the Federal Reserve has regulatory and supervisory responsibilities and ensures that sufficient amounts of currency and coin circulate to meet the publics demand. The Federal Reserve also establishes interest rates and monitors the availability of money and credit. The Federal Reserve consists of a board of governors, nominated by the president and confirmed by the Senate to serve fourteen-year terms of office, twelve regional Federal Reserve Districts, and branches of Federal Reserve banks in twenty-five other cities. The Federal Open Market Committee (FOMC) sets the Federal Reserves monetary policy carried out through the trading desk of the Federal Reserve Bank of New York. The Federal Advisory Council, the

Kahn, Mejia Consumer Advisory Council, and the Thrift Institutions Advisory Council advise the Federal Reserve Board directly on its various responsibilities. 1 Congress established the Federal Reserve in 1913 to counteract a series of banking crises that began in the 19th century. The Federal Reserves purpose is to ensure a secure banking system for both consumers and the government, impact the economy and attempt to keep inflation under control. The Federal Reserve operates free from political influence. The Federal Reserve is a decentralized central bank that balances the interests of both the government and the banking industry. Its structure has both private and public elements. Congress oversees the Federal Reserve and its officials must testify before Congress each quarter. The Senate must confirm the presidents appointee for chair. The Federal Reserves decisions do not need the approval of any branch of the government; the Federal Reserve banks operate autonomously which is similar to the structure of private-sector banking corporations. None of the Federal Reserve System is funded by tax dollars or government money. Instead, it supports itself through interest it earns on investments in government securities, bank loans, and from charges for the services it provides to financial institutions, like check processing and clearing. Any net income the Federal Reserve System makes goes to the U.S. Treasury. The Federal Reserve is the watchdog of the U.S. money flow. The Treasury Department produces currency, whereas the Federal Reserve issues our currency when levels get too low and distributes money to banks and financial institutions. The Federal Reserve banks analyze local economies for economic trends that may affect the national economy. The Federal Reserve banks supervise commercial banks, distribute cash to banks and financial institutions, and provide electronic clearing systems to process payments.
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Kahn, Mejia The Board of Governors, also known as the Federal Reserve Board, makes most of the Federal Reserves monetary policy decisions, oversees the Reserve banks and makes sure the economy is running smoothly. The seven members of the Federal Reserve Board are appointed by the president and confirmed by the Senate to serve 14-year terms. This process ensures that governorship spans presidential administrations and Congressional members to ensure that no member is aligned to a specific political patron. Each governor is also a member of the FOMC. The Federal Open Market Committee (FOMC) is comprised of seven governors and five of the 12 Reserve bank presidents. The FOMC is in charge of the buying and selling of government and federal agency securities. This encourages or maintains economic growth, steady employment, and stable prices. The FOMC sets the federal funds rate, which is the rate that commercial banks charge each other for overnight loans, which affects the interest rate that banks charge borrowers. The FOMC can raise or lower the rate, or keep it unchanged when this activity occurs Wall Street reacts by speculating about the interest rates. The Federal Reserve is probably the most influential institution on the United States economy. The FOMC uses interest rates to control what the Federal Reserve wants to accomplish. If the FOMC raises interest rates, its probably because it thinks inflation is or will be a problem. Rate increases have a negative effect on the prices of existing bonds. Stock prices have a tendency to struggle as higher interest rates impede consumer and business spending. The general population is less likely to take out loans, mortgages, and restrain from credit card purchases. Businesses have a hard time getting loans for capital expansion, and they may cut back expenses by laying off workers. The FOMC lowers interest rates when inflation is in check and the economy is slow.

Kahn, Mejia When interest rates go up it is usually a positive sign that the economy is doing well. Interest rate increases are necessary to avoid inflation. When interest rates are declining, this is a sign that our economy is not doing so well and needs some help. Finding the ideal median with interest rates is nearly an impossible task, considering the dynamics of our economy. The Fed has a dual mandate, http://federalreserve.gov defined on its website as conducting the nations monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices. The central bank is also the governments most important financial regulatory agency. Through its power to change interest rates and purchase large amounts of financial assets, the Federal Reserve has exercised more influence over economic growth and the level of employment in recent decades than any other government entity. It has used all its traditional tools and many new ones to stimulate the financial system after the Wall Street meltdown of 2008 and gave the economy various forms of support during the recession and weak recovery that followed. Since 2007, the Fed has been engaged in an effort to stimulate growth. The central bank has held short-term interest rates near zero since December 2008. In an effort to further reduce long-term rates, it has accumulated more than $2 trillion in government debt and mortgagebacked securities. While the Feds quantitative easing helped prevent a second Great Depression, the recovery in the United States and other developed countries has been minimal. Internal divisions appeared to limit the Feds ability to pursue more aggressive measures, and Congress appeared to ignore appeals from the Fed chairman, Ben S. Bernanke, for fiscal action to support the economy.

Kahn, Mejia Instead, the Fed turned to a mix of smaller steps meant to shape investor expectations and to help head off the possibility of a financial crisis in Europe. In August 2011, it announced that it would hold short-term interest rates near zero through mid-2013 to support the economy. In September 2011, it announced plans to try to push long-term interest rates down through what was called Operation Twist,' purchasing $400 billion in long-term Treasury securities with proceeds from the sale of short-term government debt. In January 2012, the Fed board adopted a plan to publish a forecast of its own actions, inaugurating a policy that is intended to magnify the power of those actions by shaping market expectations. In its first forecast, the Fed said it is likely to raise interest rates at the end of 2014, but not until then. In April 2012, Mr. Bernanke said that he was concerned about the high level of unemployment but that the Feds ability to encourage job creation was constrained by its responsibility to keep inflation low and stable. In June 2012, faced with additional signs of slow economic growth and the threat of a European financial meltdown, the Fed announced that it would extend Operation Twist' for another six months, buying about $267 billion in longerterm Treasury securities over the next six months, with money raised by selling some of its current holdings of short-term Treasuries.2

http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_reserve_system/index.html

Kahn, Mejia William McChesney Martin, Jr. - Chairman, Federal Reserve Board (date of term April 2, 1951 January 31, 1970, 19 years)

Born: December 17, 1906, New York City Died: July 28, 1998, Washington, D.C. Education: Yale University Party: Democratic Party

William McChesney Martin, Jr. (Dec. 17, 1906 July 28, 1998) was the ninth and longest-serving chairman of the Federal Reserve, serving from April 2, 1951, to Jan. 31, 1970, under five presidents. A Yale graduate, served as head of the Export-Import Bank for three years before becoming the U.S. Treasury's assistant secretary for monetary affairs and soon after, its head negotiator. In 1951, William McChesney Martin, Jr. negotiated the Accord, an agreement between the U.S. Department of the Treasury and the Federal Reserve restoring independence to the Fed. President Harry S. Truman selected Martin to be the next Fed chairman, and the Senate approved his appointment on March 21, 1951. Over nearly two decades, William McChesney Martin, Jr. would achieve global recognition as a central banker. His most famous quote about his central banking philosophy was, "The job of the Federal Reserve is to take away the punch bowl just when the party starts
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Kahn, Mejia getting interesting," referring to the need to raise interest rates when the economy is at its most active. 3 His father, William McChesney Martin , was a St. Louis banker who was asked by President Woodrow Wilson to help draft legislation that eventually created the Federal Reserve System. William McChesney Martin served as the first Federal Agent for the Federal Reserve Bank of St. Louis in 1914. Martin served as the first Chairman of the Board of Directors and Federal Reserve Agent for the Bank, from 1914-1929. He began his term as Governor of the Federal Reserve Bank of St. Louis on January 16, 1929, staying until February 28, 1941. In 1935, as a result of the Banking Act of 1935, the position of Governor of the Federal Reserve Bank of St. Louis was changed to President. William McChesney Martin Jr. was born in St. Louis, Missouri, on 17 December 1906, and died on 27 July 1998 in Washington, D.C. He was educated in St. Louis Public Schools and graduated from Yale University in 1928. He worked in the bank examination department of the Federal Reserve Bank of St. Louis, and then joined a St. Louis stock brokerage firm, A.G. Edwards & Sons, as the youngest partner in the firm. In 1931, the brokerage firm sent him to the New York Stock Exchange (NYSE) representing the firm on Wall Street. He became a member of the NYSE and in 1938, at the age of thirty-one, became the first paid president of the exchange. In 1941, President of the NYSE William McChesney Martin Jr. was drafted into the United States Army as a private. He served in Washington, D.C., on assignments to the Munitions Board and the Joint Chiefs of Staff and was involved in the Lend-Lease program with the Soviet Union. In April 1942, as a lieutenant, William McChesney Martin Jr. married Cynthia
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Kahn, Mejia Davis, daughter of St. Louis' Dwight F. Davis, former Secretary of War, Governor-General of the Philippines, and American tennis champion. William McChesney Martin Jr. was discharged from the Army in 1945 as a colonel and served three years as president of the Board of Directors of the U.S. Export-Import Bank, where he made contributions to foreign trade and the Marshall Plan's post-war reconstruction. He served as assistant secretary of the Treasury, where he oversaw both domestic and international financial policy, and as the U.S. representative on the board of the World Bank. He was instrumental in forging the Treasury Accord with the Federal Reserve System in 1951. In April 1951, while at the Treasury, William McChesney Martin Jr. was nominated by President Harry Truman for the chairmanship of the Federal Reserve System. During his 19year term, under the administrations of presidents Truman, Eisenhower, Kennedy, Johnson, and Nixon, he achieved changes in economic management and international financial coordination in the United States that encouraged economic stability and prosperity. 4 He held the longest chairmanship in the Federal Reserve's history, and his impact on the Federal Reserve System was substantial. On Constitution Avenue, in the nation's capital, stands the William McChesney Martin Jr. building. It is the headquarters of the Federal Reserve System, and it is named for the former chairman who has been deemed this country's most influential central banker. During his 19-year tenure, he fought hard defending the integrity of the Federal Reserve System against encroachment from the White House. One scenario involved an effort by President Harry Truman to control monetary policy in 1951. For close to ten years, prices of U.S. government bonds had been set at or close to par, and low yields were pegged by the Federal Open Market Committee (FOMC). As a result, banks, life
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Kahn, Mejia insurance companies and other institutional investors controlled the creation of bank reserves and the availability of money and credit. This caused a growth in aggregate demand and contributed to rising inflationary pressures. To keep inflation in check, the Federal Reserve needed to implement a restrictive monetary policy. In order to implement this monetary policy would require terminating the existing policy supporting prices of U.S. government securities. This plan was opposed by John Snyder, Secretary of the Treasury, and eventually by President Harry Truman. The president called the FOMC to a meeting in the White House and demanded that the committee continue to support U.S. bond prices. During the meeting, committee members listened to the president but made no commitment. On the outcome of the meeting, the White House announced that the Federal Reserve agreed with President Truman and would continue market support. This caused a conflict between the power enforced by the White House on the independence of the Federal Reserve. Thomas McCabe, who was the chairman of the Federal Reserve, was unable to uphold the independence the Federal Reserve, and lost his ability to lead the Federal Reserve System; he resigned his position. After Thomas McCabe resignation, William McChesney Martin Jr. provided assistance in order to help resolve the situation. During this time period, William McChesney Martin Jr . was the Assistant Secretary of the Treasury with the responsibility for monetary affairs. He brought to this position extreme value, knowledge, and understanding of the Federal Reserve System (e.g. monetary policy, functioning of financial markets). William McChesney Martin Jr. devised a plan in which the low-yielding bonds that were unwanted by investors were replaced by higher-yielding nonmarketable securities designed to appeal to long-term investors. The U.S. Treasury also agreed to use the Social Security Trust Funds to buy up some of the bonds that were being liquidated. William McChesney Martin Jr. at the time determined key features of the

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Kahn, Mejia Treasury-Federal Reserve Accord that was signed in May 1951. The Treasury-Federal Reserve Accord eliminated the obligation of the Federal Reserve to monetize the debt of the Treasury at a fixed rate. This agreement became essential to the independence of central banking and laid the foundations for the monetary policy pursued by the Federal Reserve today. The Treasury agreed that the Federal Reserve would no longer be committed to supporting prices of U.S. government securities. This agreement restored harmony between the U.S. Treasury and the nation's central bank. It also led President Truman to appoint William McChesney Martin Jr. as the new chairman of the Federal Reserve System. A second scenario, William McChesney Martin Jr. was a defender of the Federal Reserve. In December 1968, President-elect Richard Nixon attempted to remove William McChesney Martin Jr. as chairman of the Federal Reserve System and replace him with Arthur F. Burns. While he was putting together his Cabinet, Mr. Nixon invited William McChesney Martin Jr. to meet with him in New York City. Upon returning from the meeting, William McChesney Martin Jr. reported to the board, Mr. Nixon invited him to accept the position of secretary of the Treasury in his new government. He said he had great confidence in William McChesney Martin Jr. ability to serve as the chief fiscal officer of the United States. He also said that he wanted to appoint Arthur F. Burns to be head of the Federal Reserve System. William McChesney Martin Jr. said he thanked Mr. Nixon for the honor and expression of confidence in him, but he said he intended to serve out the balance of his Federal Reserve Board membership, which ran until the end of January 1970. William McChesney Martin Jr. said Mr. Nixon expressed disappointment at his decision not to accept the Treasury appointment. But William McChesney Martin Jr. said Mr. Nixon seemed even more disappointed that he would not be able to name Arthur Burns chairman of the Federal Reserve at the outset of his administration.

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Kahn, Mejia Instead, he said he would bring Arthur F. Burns into the White House as counselor and then appoint him to be chairman of the Federal Reserve when William McChesney Martin Jr. term ended. In October 1969, Mr. Nixon announced that Arthur F. Burns would become chairman of the Federal Reserve System in February 1970. Although William McChesney Martin Jr. did not mention it, he was convinced that Mr. Nixon's had a desire to make Arthur F. Burns chairman of the Federal Reserve System which can be traced back to his defeat in the 1960 presidential election. Mr. Nixon has written that, in March of that year, Arthur F. Burns came to Washington to brief him on the economic outlook. He told Mr. Nixon that the Federal Reserve's restrictive monetary policy along with tight fiscal policy would throw the economy into a recession by the fall. Since he assumed Mr. Nixon would be a candidate for the presidency at that time, the recession would cause him to lose the election. Arthur F. Burns advised Mr. Nixon to urge President Dwight D. Eisenhower to relax fiscal policy promptly and to press William McChesney Martin Jr. to ease the Federal Reserve's restrictive monetary policy in order to forestall a recession. Mr. Nixon said he urged President Eisenhower to follow Arthur F. Burns' advice, but the president refused. As a result, according to Mr. Nixon, the recession occurred, and he lost the election. Mr. Nixon favored Dr. Arthur F. Burns as Federal Reserve chairman versus William McChesney Martin Jr. as head of the nation's monetary authority. By deciding to serve out the balance of his Federal Reserve term, William McChesney Martin Jr. prevented the Federal Reserve System from being politicized by a president for whom that was a major goal.
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Kahn, Mejia Major Federal Reserve policies during William McChesney Martin Jr. term (1) Bills Only. The development of open market operations as the main instrument of monetary policy meant that the Fed had to be concerned with the performance of the government securities market. Standards had been set for securities dealers during World War II but the stability and liquidity of the market were unthreatened under the peg. One of William McChesney Martin Jr. first actions at the Fed was to chair an Ad Hoc Subcommittee to study and report on the operations and functioning of the Open Market Committee in relation to the Government securities market under the new free-market regime of fluctuating yields. The subcommittees objective was effective open market operations, which requires an efficiently functioning Government securities market characterized by depth, breadth, and resiliency. This was similar to the goals of the New York Stock Exchange, which regularly publishes indicators of market performance consisting of price continuity, market depth, and quotation spreads. William McChesney Martin Jr. objectives were to achieve flexibility in the determination of bank reserves without interfering with efficient transfers of saving to investment. When intervention by the Federal Open Market Committee is necessary to carry out the Systems monetary policies, the market is less likely to be disturbed if the intervention takes the form of purchases or sales of very short-term Government securities. The subcommittees report pointed out that bills only was in the best central banking traditions; it was received with hostility by economists for whom monetary policy meant the readiness to force sudden and substantial changes in interest rates, especially long-term rates. (2) Operation Twist. The bills only policy was terminated in 1961 under pressure from President Kennedys New Frontier program, which demanded no restrictions on policy instruments. The last nine years of William McChesney Martin Jr. term was a battle with

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Kahn, Mejia inflationary administrations. Kennedys advisers were inclined toward fiscal policy but came up with a challenging program for the Fed that aimed at the triple objectives of growth, balance of payments surplus, and price stability by twisting the yield curve. The Fed would stimulate longterm investment by buying long-term securities. At the same time, it would help the balance of payments by attracting short-term investments through the higher short-term yields that would result from sales of short-term securities. The program would not be inflationary because the added reserves from purchases of long-terms would be offset by the sales of short-terms. The administration persuaded William McChesney Martin Jr. to nudge short-term rates upward while keeping long-term rates low. Operation Nudge turned into Operation Twist, which would involve aggressive actions to reduce long rates. Several members of the FOMC were opposed to the end of bills only as a step back toward political interference in monetary policy and a pegged bond market. Kennedys advisers initially opposed the Fed Chairmans reappointment in 1963, but backed away from that position when they discovered the level of support for William McChesney Martin Jr. in the business community, at home, and abroad. Average annual inflation in William McChesney Martin Jr. first decade as the Federal Chairman was 2.2 percent compared with 7.1 percent and 2.5 percent in the 1970s and 1990s. The first period was the least volatile, with a 0.87 percent standard deviation of inflation compared with 1.60 percent and 0.93 percent in the later periods.

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Kahn, Mejia Arthur F. Burns - Chairman, Federal Reserve Board (date of term February 1, 1970 January 31, 1978)

Arthur Frank Burns April 27, 1904 Born in Stanislau, Austria 1914 Family immigrated to Bayonne, NJ 1925 Received A.B. and A.M. degrees in Economics, Columbia University 1926-1927 Lecturer in Economics at Columbia 1927-1944 Taught Economics at Rutgers University, became Full Professor in 1943 1930-1968 Research Associate, National Bureau of Economics. Served as Director of Research, 1945-1953; President, 1957-1967; and Chairman, 1967-1968. 1934 Received Ph.D., Economics, Rutgers 1941-1942 Visiting Professor, Columbia 1944-1969 Professor of Economics, Columbia. Named John Bates Clark Professor, 1959. 1953-1956 Eisenhower Administration Chairman of Council of Economic Advisors and Chairman, Advisory Board on Economic Growth and Stability 1956 Chairman, Cabinet Committee on Small Business 1957-1958 Member, U.S. Advisory Council on Social Security Financing 1961-1966 Member, President's Advisory Committee on Labor-Management Policy. 1969-1970 Counsellor to the President 1970-1978 Chairman, Federal Reserve Board 1978-1981 Scholar in Residence, American Enterprise Institute 1981-1985 Ambassador to Federal Republic of Germany June 26, 1987 Died

Arthur Frank Burns (19041987) was an American economist who served as chairman of the Federal Reserve from Feb. 1, 1970, to Jan. 31, 1978. He was born in the city of Stanislau, Austria and immigrated to the United States in 1914. Burns earned his PhD from Columbia University in 1934. His career alternated between academia and government. He taught at Columbia and studied business cycles while president of the National Bureau of Economic Research and served as chairman of the U.S. Council of Economic Advisors from 1953 to 1956 under Dwight D. Eisenhower's presidency. He served as chairman of the Federal Reserve from 1970 to 1978 and as ambassador to West Germany from 1981 to 1985.

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Kahn, Mejia As chairman of the Federal Reserve, Arthur F. Burns presided over the economy when the inflation rate was increasing. The consumer price index also rose over 72 percent; negative economic events such as multiple oil shocks and heavy government deficits arising from the Vietnam War and Great Society government programs. Born in Stanislau, Austria, Arthur Burns immigrated with his Austro-Hungarian Jewish parents to New Jersey. He grew up in Bayonne, where he showed an interest in debates and languages. He attended Columbia University on a scholarship, and worked as a painter, sailor, writer, and clerk. He also had the opportunity to publish articles in New York Herald Tribune. Arthur F. Burns studied under Wesley Clair Mitchell, one of the nation's leading economists who pioneered in the development of statistics. Wesley Clair Mitchell had organized the National Bureau of Economic Research at Columbia and, after receiving his Ph.D. in economics, Arthur F. Burns joined him there. His first publication, Production Trends in the United States Since 1870, was released by the National Bureau in 1934. During the 1930s economic debate in America centered on the concepts of John Maynard Keynes, who supported a strong governmental role was required in order to economy. During his term the United States was in a deep depression, this meant large-scale government spending programs sponsored by President Franklin D. Roosevelt's called the New Deal. While accepting some of Keynes' ideas, Arthur F. Burns believed the American Keynesians were far too simplistic in their approaches. Arthur F. Burns believed economic action must be preceded by gatherings facts and data rather than being based upon some abstract idea. Each industry has its own cycle and when several head downward at the same time the economy will have a recession or depression. What is needed at that time is some intervention on a highly selective basis.

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Kahn, Mejia In the late 1940s, Arthur F. Burns he determined that the maintenance of employment was a prime goal of government, but that inflation was another serious problem which had to be addressed. This would be accomplished by "leaning" against the economy whenever one or the other threatened. Gentle stimulus pressures would be applied when recession threatened, and restrictive ones when inflation seemed about to rise or accelerate. With this type of perspective on the economy aligned Arthur F. Burns with moderate Republicans who were supporting General Dwight D. Eisenhower for the presidency. When Eisenhower became president in 1953 he selected Arthur F. Burns to head the Council of Economic Advisors. A recession developed, and President Eisenhower was willing to take steps on a major economic recovery program. Arthur F. Burns urged President Eisenhower to restrain due to the fact that economic indicators seemed to point to a milder correction than most other economists expected. Arthur F. Burns observations were correct and without major intervention the economy turned upward in 1954. Arthur F. Burns resigned from the administration after the 1956 election and returned to the National Bureau of Economic Research and Columbia. He worked as an advisor to President Eisenhower and later took on temporary assignments from John F. Kennedy and Lyndon B. Johnson. At the time he also kept in close contact with Richard Nixon, formerly Eisenhower's vice president and then a New York attorney. Richard M. Nixon won the 1968 Presidential election and asked Arthur F. Burns to take on a position of counselor to the president; this position would carry cabinet rank and give him wide responsibilities in domestic affairs. At the time the nation was in the midst of a crisis of confidence due to anti-Vietnam War sentiment, high inflation, and the largest budget deficit of the post-World War II period. Arthur F. Burns recommended a slowdown in the growth of the

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Kahn, Mejia money supply through Federal Reserve Board policies and cutbacks in spending, which he hoped would curtail the inflation rate without causing a recession. President Nixon accepted the outlines of the program and it appeared to be working. Then the Federal Reserve money supply was constrained which caused interest rates to rise and leading to an economic downturn while inflation was still an issue. The term stagflation, inflation accompanied by stagnation in the rate of growth of output and an increase in unemployment in the economy; simultaneous increases in the inflation rate and the unemployment rate. With the coming of stagflation Arthur F. Burns position in the Nixon White House declined, and his views started to change. Now he supported wage and price guidelines as a means of controlling inflation. In 1969 President Nixon appointed Arthur F. Burns to become chairman of the Federal Reserve. Arthur F. Burns expanded the currency supply, which gave the economy a boost. When the Penn Central Railroad collapsed in 1970, Arthur F. Burns proclaimed that the Federal Reserve would provide sufficient funds to prevent a panic, and due to the way he dealt with the crisis, his demeanor increased his reputation and gathered supporters. Arthur F. Burns continued to support wage and price guidelines and was credited with having helped President Nixon impose them in 1971. During 1971 he expanded the money supply, so that by Election Day 1972, the economy was growing while prices were being contained, making the economy appear quite healthy and helping Nixon win a second term. Burns served as chairman of the Federal Reserve until the conclusion of his term in 1978, at which time he was not reappointed by Democratic President Jimmy Carter. This caused the dollar to fall and impacted the new administration. Arthur F. Burns left government to take a position at the American Enterprise Institute where he lectured and wrote, Reflections of an Economic Policy Maker (1978).

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Kahn, Mejia In 1981 President Ronald Reagan named Arthur F. Burns ambassador to the Federal Republic of Germany. He took the position during a time of strong anti-American sentiment in Europe, because of U.S. deployment of cruise and Pershing missiles. Arthur F. Burns was able to ease the tensions within NATO and was able to arrive at an agreement with the West German foreign minister. Arthur F. Burns served as Ambassador to Germany for four years, then returned to the American Economic Institute to pursue writing and teaching. Arthur Burns died in Baltimore, Maryland on June 26, 1987. His economic policies influenced United States and global economies. He was considered a very inspirational man who mentored Milton Friedman (Milton Friedman was an American economist, statistician, and author who taught at the University of Chicago for more than three decades). Arthur F. Burns did not consider monetary policy to be the driving force behind inflation. He believed that inflation began from an inflationary psychology produced by a lack of discipline in government fiscal policy and from private monopoly power, especially of labor unions. It followed that if government would intervene directly in private markets to restrain price increases, the Federal Reserve could pursue a simulative monetary policy without increasing the severity of inflation. From the beginning of his tenure as Federal Chairman, Arthur F. Burns lobbied for government intervention in private wage and price setting. When such measures were enacted into wage and price controls on August 15, 1971, he became willing to continue the expansionary monetary policy that had begun early in 1971. The fundamental divide in monetary economics is whether the price level is a monetary or a nonmonetary phenomenon. If the price level is a monetary phenomenon, it varies to endow the nominal quantity of money with the real purchasing power desired by the public. The central bank is the cause of inflation. If the price level is a nonmonetary or real phenomenon, its behavior possesses

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Kahn, Mejia multiple, changing causes. Direct intervention by government in the price setting practices of the public can lower inflation. Such intervention permits a more expansionary monetary policy designed to lower unemployment and stimulate real growth. Arthur F. Burns conducted monetary policy on the assumption that the price level is a nonmonetary phenomenon. The Congress and the administration, public opinion, and most of the economics profession supported that policy. The result was inflation. That inflation eventually led to the present consensus that the control of inflation is the paramount responsibility of the central bank.

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Kahn, Mejia Paul A. Volcker - Chairman, Federal Reserve Board (date of term August 6, 1979 August 11, 1987)\

Paul A. Volcker was born to Alma Louise and Paul Adolph Volcker Sr. on September 5 th, 1927 in Cape May, NJ. Paul Volcker Jr. graduated Teaneck High School (Treaser), and earned his BA at Princeton University in 1949. Later in 1951, Volcker graduated with a M.A. in political economy and government from the Harvard University Graduate School of Public Administration. From 1951 to 1952 he attended the London School of Economics (ncafp.org). In addition, Volcker earned honorary degrees from multiple institutions such as: Hamilton College, University of Notre Dame, Princeton University, Dartmouth College, New York University, University of Delaware, Farleigh Dickson University, Bryant College, Adelphi University, Lamar University, Bates College, Fairfield University, Northwestern University, Syracuse University, Queens University at Kingston in Canada, and Amherst College (enotes.com). While still in school, Volcker worked at the Federal Reserve Bank of New York which in 1952 led to a full time staff position as an economist. In 1957, Volcker left the Federal Reserve Bank of New York and went to Chase Manhattan Bank to become a financial economist. Later in 1962, Volcker became a director of financial analysis for the U.S. Treasury Department. In 1963, he became a deputy under secretary for monetary affairs. In 1965 Volcker left the U.S. Treasury Department and went back to Chase Manhattan Bank to become a vice-president and director of
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Kahn, Mejia planning. From 1969-1974 he was appointed under the U.S. Treasury for monetary affairs. In 1975 Volcker became a senior fellow at Princeton University. In that same year, Volcker became president of the Federal Reserve Bank of New York one of the most important banks in the Federal Reserve System (encyclopedia.com). Known as Tall Paul, the 6-foot-7, Mr. Volcker was named chairman of the Board of Governors of the Federal Reserve System by President Carters and was sworn in on August 6th, 1979 and served until August 11, 1987 (ny.frb.org).

When Volcker took over as chairman of the Federal Reserve Board, the U.S. economy was less than perfect. Inflation was running over 13 percent a year and the value of the dollar was falling. Volcker was the answer to calming many fears, not only for President Carter but also in financial markets where concern had risen over renewed inflation. In a Time magazine interview, Volcker recalled: "The [Carter] Administration had got deeply concerned. They said to me they were scared of this exploding inflation and were willing to stand still for stronger measures than would ordinarily be the case. And that is a great advantage. If you can walk into a situation that is felt to be so severely out of kilter, you have greater freedom of action."

Paul Volcker is credited for ending a period of high and rising inflation rates as well as restoring substantial growth rates. In 1979, With Volckers leadership in partnership with the Federal Open Market Committee, they sought out to oppose past high money supply growth rate policies to regain control over the double digit inflation by implementing more strict monetary supply growth rates. The result of the attempt to gain control over inflation was disappointing as the prime rate in December of 1980, peaked at 21.5 percent. With interest rates so high, the economy fell in to the worse recession in 40 years. By 1982, unemployment reached 10.7 percent. Consequently, this failed attempt resulted in criticism towards Volcker. This also put

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Kahn, Mejia many small businesses out of operation. In 1982 the crisis led FOMC to drop the strict monetary policy. The crisis also brought concern to Congress and questioned whether the independence of the Fed should be rescinded. the attempt to gain control over inflation was disappointing as the prime rate in December of 1980, peaked at 21.5 percent. With interest rates so high, the economy fell in to the worse recession in 40 years. By 1982, unemployment reached 10.7 percent. (encyclopedia.com). In the 1980s, due to deregulation, the financial industry forewent an era where the control over the money supply was significantly obscured. The results were large-scale shifts in deposits between different accounts and consequently ended in unpredictable growth rates of money. Volcker in turn avoided taking strict and ideological positions in regard to monetary policy. Additionally, Volcker inexorably preserved the Feds oversight powers in banking regulation where the proposals of streamline regulatory processes were a threat. Volckers ideology was that if the banks used the Fed as the lender of last resort, those financially troubled banks needed to be monitored and regulated daily along with the U.S. comptroller of the currency.

According to Encylopedia.com, Lawrence Malkin from Time (January 23, 1989) noted, "For eight years, as chairman of the Federal Reserve Board, Paul Volcker was perhaps the second most powerful man in WashingtonThere were no doubt times, as he squeezed the money supply and cost people jobs in his battle against double-digit inflation, when he was also one of the most unpopular." It was notable that Volckers moves had much impact on the nations economy to a point where Volckers moves were watched worldwide.

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Kahn, Mejia In terms of personal life post the Fed, according to encyclopedia.com, Lawrence Makin from Time (January 23, 1989), noted, He had profound impact on a $4.3 trillion economy but lived in a tiny $500-a-month apartment furnished with castoffs. He ran his agency in a notably serene and straightforward style, and still his mystique grew so potent that his every move sent global financial markets into spasmodic guessing games about what he was thinking." After he had tamed the inflation rate and turned the economy around in the mid-1980s, he became a sort of folk hero.

Volcker took a job after leaving government in 1987 as unpaid chairman of the National Commission on the Public Service, a private group working on behalf of the nation's civil servants. He soon became chairman of the New York investment banking firm James D. Wolfensohn, earning a large salary for the first time in his life, and continued to be a respected commentator on the nation's financial affairs in the 1990s (encyclopedia.com).

In 2009, under President Obama, Volcker led a new White House committeethe Economic Recovery Advisory Board. Volcker met periodically with President Obama whom he had a luke warm relationship with. It was no secret that Volckers at times was frustrated being an outside advisor to the President. In 2011, Volcker was replaced by Jeffrey R. Immelt, the CEO of General Electric, the corporate giant (nytimes.com).

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Kahn, Mejia Alan Greenspan - Chairman, Federal Reserve Board (date of term August 11, 1987 January 31, 2006)

Alan Greenspan was born on March 6th, 1926 in the Washington Heights area of New York City, New York. Alan Greenspan was the only child of Herbert Greenspan and Rose Goldsmith who soon divorced (Leonhardt). Astoundingly, at the early age of five, Greenspan demonstrated his talent in numbers by reciting baseball batting averages and performed mathematical calculations in his head (Britannica.com). Greenspan graduated from George Washington High school in Washington Heights in 1943. At the age of 18, Greenspan was rejected by a draft board to serve in the military due to a spot in his lung which looked like tuberculosis. Without a plan for his future, Greenspan turned to music and later attended Julliard School of music. Greenspan was good with the saxophone and clarinet and played in a band called Henry Jerome. Greenspan was not known as a musical star. Rather, he was known more of a sideline musician (Leonhardt). With minor success in music, Greenspan attended New York University in 1948 where he earned his Bachelor of Arts and then his Masters of Arts in economics. Greenspan worked on his doctoral degree at Columbia University under the future Federal Reserve Board chairman Arthur F. Burns. From 1948 to 1953, Greenspan worked at the National Industrial Conference Board as an economic analyst. Also, by 1953, Greenspan dropped out of Columbia University to

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Kahn, Mejia form the Townsend-Greenspan & Co., Inc. The firm was an economic consulting firm in New York. William Townsend, Greenspans partner, died in 1958, making Greenspan the president and owner of Townsend-Greenspan, Inc. Between 1974 and 1977 Greenspan was Chairman of the Council of Economic Advisers under President Gerald Ford. As chairman of the Council of Economic Advisers, Greenspan promoted policies that caused the rate of inflation to drop from 11 to 6.5 percent. In 1977 Greenspan returned to his firm in New York and became an adjunct professor at New York University, where he was awarded a Ph.D. in economics (Britannica.com). Alan Greenspan was appointed by President Ronald Reagan as chairman of the Federal Reserve on August 11, 1987 to fill Paul Volckers term. During Greenspans term, he was known for steering the economy between the hazards of inflation and recession utilizing monetary policy. On October 19th, 1987, shortly after taking command of the Federal Reserve, the Dow Jones Industrial Average fell to a record of 508 points. Greenspan acted quickly to ensure market liquidity. Also in 1997 when Asian countries underwent financial crisis and economic downturns, Greenspan lowered U.S. interest rates to help soften the economy. In June of 1999 as the Asian economies made progress, Greenspan initiated a series of interest rate hikes. He also drew the publics attention to what he called unsustainable rates of growth in the U.S. economy and overextended stock prices toward the end of the 20th century. Greenspan has been granted credit for the longest official economic expansion in U.S. history within March of 1991 and February 2000 (Britannica.com). Greenspans avid economic decision making abilities became admired internationally. His influence on global finance was considered so extensive that in September 1999 The Sunday Times of London named him one of the three most powerful people in the British Isles.

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Kahn, Mejia International recognition of Greenspans achievements continued: in 2000 the French government awarded him the Legion of Honour, and in 2002 Queen Elizabeth II of the United Kingdom named him an honorary Knight of the British Empire (Britannica.com). On July 1991 Greenspan was nominated by President George Bush Sr. to serve a second term and in 1996 by President Bill Clinton to serve a third term and later in 2000 Greenspan was re-nominated by Clinton for a fourth term. In 2004 President George Bush Jr. nominated Greenspan to serve a fifth term. On October 2005 Bush nominated Ben Bernanke to succeed Greenspan who stepped down as chairman of the Federal Reserve on January 2006 (noblesoul.com) Once called Oracle and Maestro of economic policy, Greenspan was also equivalently criticized for the economic downturn of 2008, after failure to ward off the credit and housing bubble that caused a deep recession. A bipartisan panel (Financial Crisis Inquiry Commission) appointed by Congress, called to investigate the financial crisis, called Greenspan to testimony. On April 7th, 2010, in testimony before the Financial Crisis Inquiry Commission, Greenspan took on a torrent volume of questions about the failure to control subprime mortgages and unethical lending practices during his term as chairman of the Fed (Winer). Time Magazine has identified Greenspan as one the 25 people to blame for the financial crisis (time.com) Greenspan disputed that in 1999 and in 2001, he had forewarned abusive lending and low-down-payment mortgages. He further argued that Congress would have clamped down on the Fed if there were any measures to slow down the housing market. Despite his attempt to justify the Feds involvement in the crisis, Greenspan acknowledged the Feds shortcoming in regulation. He also admitted to trusting the private markets too much. However, he pleaded not guilty and argued three reasons: 1) International markets were performing well and the overall

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Kahn, Mejia world economy allowed greater consumption since borrowers could afford to buy pay more, 2) the Fed influences short-term interest rates and home prices are affected by long-term interest rates. Between 2001 and 2003 the Fed cut the overnight federal funds rate from 6.5 to 1 percent. The intent for a lower rate was to prevent a recession following the tech bubble. The issue, according to Greenspan, arose when in 2004 the rate was increased and flexible mortgages did not follow the rate increase; 3) Greenspan argued that regulators are limited in what can be forecast (Samuelson). Regardless of his attempt to defend himself, much criticism still lurks in the media.

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Kahn, Mejia Ben Bernanke - Chairman, Federal Reserve Board (date of term February 1, 2006 - )

Ben Shalom Bernanke, of Jewish decent, was born December 13, 1953 in Augusta, Georgia, borne to Phillip, a pharmacist, and Edna Bernanke, an elementary school teacher (Ben White). Bernanke was raised in Dillon, South Carolina and has a younger brother and sister. At an early age Ben Bernanke learned Hebrew from his grandfather Harold Friedman, a service leader by trade. The Bernankes had a very strong Jewish culture growing up. Being one of the few Jewish families, the Bernankes attended the local Synagogue, Ohay Shalom. Bernanke attended East Elementary and graduated class valedictorian from Dillon High School where he also played the saxophone in the marching band. During High School, Bernanke taught himself Calculus and achieved an SAT score of 1590 out of 1600 (Ben White). In 1975, Bernanke graduated, summa cum laude, with a Bachelor of Arts in economy from Harvard University. Later in 1979, he received a philosophy degree in economics from the Massachusetts Institute of Technology. In 1983 to 1985, Bernanke was an associate Professor of Economics at Stanford University and before that he was an assistant professor. From 1979 to 1985, Bernanke taught at New York University and later was tenured at Princeton University in the Department of Economics. In 1996 he chaired the department until 2002. Before becoming Chairman, Bernanke
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Kahn, Mejia was Chairman of the Presidents Council of Economic Advisors from mid 2005 and early 2006. From 1987 thru 1979 Bernanke was a visiting scholar at the Federal Reserve Banks of Philadelphia, Boston, and New York. He was also in the Academic Advisory Panel at the Federal Reserve Bank of New York from 1990 to 2002 (Ben White). Dr. Bernanke has published many articles on a wide variety of economic issues, including monetary policy and macroeconomics, and he is the author of several scholarly books and two textbooks. He has held a Guggenheim Fellowship and a Sloan Fellowship, and he is a Fellow of the Econometric Society and of the American Academy of Arts and Sciences. Dr. Bernanke served as the Director of the Monetary Economics Program of the National Bureau of Economic Research (NBER) and as a member of the NBER's Business Cycle Dating Committee. In July 2001, he was appointed Editor of the American Economic Review. Dr. Bernanke's work with civic and professional groups includes having served two terms as a member of the Montgomery Township (N.J.) Board of Education.

In February of 2004, while being a member of the Board of Governors of the Federal Reserve System, Bernanke delivered a speech where he hypothesized about a new era which he called the Great Moderation. He described the era as having nonvolatile business cycles due to the impact of macroeconomic policy.

The following year, in June of 2005, Bernanke was appointed by George W. Bush as Chairman of the Presidents Council of Economic Advisers. Bernankes appointment to Chairman was widely thought out to be a test to determine if Bernanke was able to succeed Greenspan as chairman of the Federal Reserve. On February of 2006, President Bush appointed Ben Bernanke as the 14th Chairman of the Federal Reserve (federalreserve.gov) .

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Kahn, Mejia Due to the Greenspans ability to generalize policies when presenting to the media, Bernanke had trouble communicating more clear statements regarding Fed policies and consequently had to take a step back since his statements tended to affect the stock market. CNBCs Maria Bartiromo disclosed comments from a private conversation between her and Bernanke and reported that he said investors misrepresented his comments saw him as dovish on inflation (Lowenstein).

Ben Bernanke was nominated for a second term on August 25, 2009 by President Obama who supported Bernanke due to his background, temperament, courage and creativity that helped prevent another depression in 2008. Bernanke was confirmed by the senate on January 28 th, 2010 by a 70/30 vote, historically the lowest ratio in history (Robb).

It is probably not easy to take over a hemorrhaging economy and impress the media with decisions based on desperate measures. Bernanke was sharply criticized for the financial crisis of the late 2000s, for the government bail outs and most recently due to Operation Twists extension to further stimulate the slow economic recovery. Critics such as Greg Robb of MarketWatch confronted Bernanke in an interview as he commented, You havent had a very good time in all the Republican presidential [2012] debatesreferring to the results of critics in the media. Bernanke smilingly replied, Im not going to get involved in political rhetoric; I have a job to do. Regardless of what the media decides to publicize, the Fed had reported earlier in the year that inflation would remain between 1.4 and 1.8 percent and 2 percent through 2014. Such low inflation results prove that Bernankes allegations are invalid (Milbank).

Despite the already aggressive media criticism, other politicians have attacked Bernankes attempts to stimulate the economysome to earn personal advantage over voters
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Kahn, Mejia such as Texas Governor Rick Perry. Perry may have been the worse of critics calling Bernankes behavior almost treasonous (Milbank). Perry argued that Bernanke had injected excessive monetary stimulus to the economy and if he continued to do so, that Bernanke would not be welcome to the State of Texas. Perry appealed to emotion when he stated its a travesty that young people in America are seeing their dollar devaluated due to Bernankes economic stimulus. The criticism didnt stop at Rick Perrys complaints. Newt Gingrich said that Bernanke is, the most inflationary, dangerous and power-centered chairman of the Fed in the history of the Fed. Ron Paul joined in accusing Bernanke of inflating twice as fast as Greenspan (Milbank). Although there hasnt been much rebuttal from Bernanke to his critics, he responded earlier this year in 2012. The low level of inflation is validationThere are some who were very concerned that our balance-sheet policies and the like would lead to high inflation. Theres certainly no sign of that yet (Milbank). Since Bernanke was appointed, the economy has seen positive changes in consumption, job growth, and industrial production. Forecasts from early 2012 included a growing rate of 2.8 to 3.2 percent for 2013 and unemployment dropping to between 6.7 and 7.6 percent by 2014 (Milbank).

Most recently in June of 2012 Bernanke testified before U.S. Congress where he outlined the latest economic results. Bernanke started by reporting that the real domestic product (GDP) rose at an annual rate of 2 percent in the first quarter, 3 percent in the fourth quarter of 2011. Further he noted the increases in labor and decrease in unemployment. Bernanke said that Economic growth appears poised to continue at a moderate pace over the coming quarters. Further he added that the housing market has influenced a drag in the economy despite the

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Kahn, Mejia lowest interest rates and affordability levels history due to tight lending standards causing less borrowers and more unoccupied homes. Consequently, this has also limited jobs and consumption of goods and services related to housing (federalreserve.gov).

Furthermore, Bernanke spoke about the improvement in Banking and financial conditions since the crisis. Bernanke explained, notably, recent stress tests conducted by the Federal Reserve of the balance sheets of the 19 largest U.S. bank holding companies showed that those firms have added about $300 billion to their capital since 2009 (federalreserve.gov) .

There is no doubt that regardless of the criticism, Bernanke has influenced a positive change since he was appointed Chairman of the Federal Reserve. Bernanke was known for his focus on Depressions and may have been the best suited chairman for the job. Whether or not the economy could be better or worse is a question that would probably be best left unanswered as the opportunity cost of the ideal chairman of the Federal Reserve may be costly to the entire nation.

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Kahn, Mejia Bibliography About William McChesney Martin Jr. (1906-1998), retrieved May 29, 2012 http://fraser.stlouisfed.org/martin/aboutmartin.php Remembering William McChesney Martin Jr. Andrew F. Brimmer - President, Brimmer & Co. Inc., Washington, D.C Published September 1, 1998 | September 1998 issue , retrieved May 29, 2012 http://www.mpls.frb.org/publications_papers/pub_display.cfm?id=3600 William McChesney Martin, Jr.: A Reevaluation By John H. Wood, Retrieved June 1, 2012 http://www.richmondfed.org/publications/research/region_focus/2006/winter/pdf/federal_reserve .pdf?WT.si_n=Search&WT.si_x=3 Ackley, Gardner. Administered Prices and the Inflationary Process. American Economic Review, May 1959, vol. 49, no. 2, pp. 419-430. Bremner, Robert. Chairman of the Fed: William McChesney Martin,Jr., and the Creation of the Modern American Financial System. New Haven: Yale University Press, 2004. Friedman, Milton, and Anna J. Schwartz. A Monetary History of the United States, 1867-1960. Princeton: Princeton University Press, 1963. Hargrove, Erwin C., and Samuel A. Morley. The President and the Council of Economic Advisers: Interviews with CEA Chairmen. Boulder: Westview Press, 1984. Hetzel, Robert L., and Ralph F. Leach. The Treasury-Fed Accord: A New Narrative Account. Federal Reserve Bank of Richmond Economic Quarterly, Winter 2001, vol. 87, no. 1, pp. 33-55. After the Accord: Reminiscences of the Birth of the Modern Fed. Federal Reserve Bank of Richmond Economic Quarterly, Winter 2001, vol. 87, no. 1, pp. 57-64. Kettl, Donald F. Leadership at the Fed. New Haven: Yale University Press, 1986. Maisel, Sherman J. Managing the Dollar. New York: Norton, 1973. Romer, Christina D., and David H. Romer. The Evolution of Economic Understanding and Postwar Stabilization Policy. National Bureau of Economic Research Working Paper no. 9274, October 2002. Remembering William McChesney Martin Jr. Andrew F. Brimmer - President, Brimmer & Co. Inc., Washington, D.C Published September 1, 1998 | September 1998 issue , retrieved June 7, 2012 http://www.mpls.frb.org/publications_papers/pub_display.cfm?id=3600

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Kahn, Mejia William McChesney Martin Jr. Collection FRASER, Federal Reserve Archive, retrieved June 7, 2012 http://fraser.stlouisfed.org/martin/ Arthur Frank Burns and Inflation, by Robert L. Hetzel, retrieved July 4, 2012 Federal Reserve Bank of Richmond Economic Quarterly Volume 84/1 Winter 1998, retrieved June 8, 2012 http://www.richmondfed.org/publications/research/economic_quarterly/1998/winter/pdf/hetzel.p df Robert Sobel, The Worldly Economists (1980), Publisher Free Pr; 1 st Edition, September 1980 William Breit and Roger Ransom, The Academic Scribblers (1971) Edward Flash, Jr., Economic Advice and Presidential Leadership (1965) Columbia University Press, New York, 1965 Herbert Stein, The Fiscal Revolution in America (1969). Aei Press (October 22, 1990) Sherman Adams, Firsthand Report: The Story of the Eisenhower Administration (1961) Greenwood Pub Group; 1st Ed. edition (June 1961) William Safire, Before the Fall, Transaction Publishers (April 26, 2005) Reflections on an Economic Policy Maker: Speeches and Congressional Statements. 1969-1978, by Arthur F. Burns. Washington, D.C.: Amerian Enterprise Institute, 1978. Wyatt C. Wells, Economist in an Uncertain World: Arthur F. Burns and the Federal Reserve, 1970-78, Columbia University Press, 1994. encyclopedia.com. http://www.encyclopedia.com/topic/Paul_Adolph_Volcker.aspx. 2004. enotes.com. Paul Volcker. 8 July 2004. <http://www.enotes.com/topic/Paul_Volcker#Early_life>. ncafp.org. http://www.ncafp.org/articles/CVs%20and%20Bios/Biography%20of%20Paul%20A%20Volcke r.pdf 31 August 2009. ny.frb.org. Paul A. Volcker Bio. <http://www.ny.frb.org/aboutthefed/PVolckerbio.html>. nytimes.com. Paul A. Volcker. 21 January 2011. <http://topics.nytimes.com/top/reference/timestopics/people/v/paul_a_volcker/index.html>. Treaser, Joseph B. "The Making of a Financial Legend." Treaser, Joseph B. Paul Volcker. 2004. 97.
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Kahn, Mejia Britannica.com. Alan Greenspan. 06 July 2012. <http://www.britannica.com/EBchecked/topic/676686/Alan-Greenspan>. Laurence, Richard. The Alan Greenspan Timeline. 2009-2011. <http://www.noblesoul.com/orc/bio/greenspan-time.html>. Leonhardt, David. Economist's Life, Scored With Jazz Theme. 18th September 2007. <http://www.nytimes.com/2007/09/18/books/18leonhardt.html?_r=1>. Samuelson, Robert J. Alan Greenspan's flawed analysis of the financial crisis. 22 March 2010. 2010 <http://www.washingtonpost.com/wpdyn/content/article/2010/03/21/AR2010032101707.html>. time.com. 25 People to Blame for the Financial Crisis. <http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877331,00.ht ml>. Winer, Joann M. Alan Greenspan: The Financial Crisis Was Not My Fault. 2010. <http://www.politicsdaily.com/2010/04/09/alan-greenspan-the-financial-crisis-was-not-myfault/>. Ben White. Bernanke Unwrapped. 15 November 2005. < http://www.washingtonpost.com/wpdyn/content/article/2005/11/14/AR2005111401544.html>. federalreserve.gov. Board Members. Ben S. Benanke. 7 June 2012. <http://www.federalreserve.gov/newsevents/testimony/bernanke20120607a.htm>. Lowenstein, Roger. The Education of Ben Beranke. 20 January 2008. <http://www.nytimes.com/2008/01/20/magazine/20Ben-Bernanke-t.html>. Milbank, Dana. Ben Bernanke smiles in the face of critics. 25 January 2012. <http://www.washingtonpost.com/opinions/ben-bernanke-smiles-in-the-face-ofcritics/2012/01/25/gIQAizaWRQ_story.html>. Robb, Greg. Bernanke Reappointed for Second Term. <http://articles.marketwatch.com/2009-0825/economy/30687921_1_bernanke-and-paulson-financial-crisis-second-term>.

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