Alan Greenspan Passes Away at 100

Economist Alan Greenspan has died at the age of 100, as announced by his wife.

Greenspan held the position of chairman of the Federal Reserve for four terms, starting in 1987 during Ronald Reagan’s presidency and concluding his tenure in 2006 under George W. Bush.

He is often credited with fostering economic prosperity during the 1980s and 1990s, though some critics hold him responsible for the financial crisis that occurred in 2008.

In 1997, he married renowned NBC journalist Andrea Mitchell. She shared that he passed away on Monday due to complications related to Parkinson’s disease.

When appointing Greenspan as Fed chairman, former President Ronald Reagan remarked that he was “an economist’s economist” and one of the most respected figures in the field.

Following the financial crisis, which Greenspan described as a “once-in-a-century credit tsunami,” he acknowledged that he had underestimated certain human behaviors regarding economic self-interest.

“Those of us who focused on the self-interest of financial institutions are now in crisis,” he stated during a Congressional hearing in 2008. “I’m in an unbelievable state of shock,” he admitted.

He further reflected that it was a mistake to think organizations, especially banks, were capable of best protecting their shareholders and their companies.

His insights prompted a reevaluation of free market capitalism, contributing to ongoing debates in economic theory.

Greenspan also coined the phrase “irrational exuberance,” highlighting how certain investor behaviors can lead to market bubbles. In a 2005 speech, he remarked on the growing reliance on market forces by governments and reflected on the principles of Adam Smith regarding economic flexibility and self-correction.