The Man Who Knew: The Life and Times of Alan Greenspan — Fifteen: “GREENSPAN’S IRRELEVANT”

1. 1. Greenspan's first FOMC meeting in August 1987 challenged the staff forecast, focusing on stock market risks and signaling his distinctive approach.
2. 2. Greenspan raised the discount rate by half a point in September 1987, his first major policy move, to signal inflation vigilance.
3. 3. Greenspan's empiricist approach led him to distrust static economic models, favoring detailed data analysis over staff forecasts.
4. 4. Greenspan's early tenure revealed a paradox: he was unexpectedly mild on regulation but sharply questioned economic staff forecasts.
5. 5. Greenspan's relationship with Andrea Mitchell was strained by his move to Washington and his continued socializing with other women.
6. 6. On This Week with David Brinkley in October 1987, George Will taunted that Greenspan was 'irrelevant' due to political pressures.
7. 7. Greenspan's data-driven approach anticipated the post-monetarist confusion in macroeconomics, where no single theory dominated.
8. 8. Greenspan's first FOMC meeting ended without a tightening, but he laid down a marker by challenging the staff and signaling his confidence.