When Alan Greenspan, Chairman of the Federal Reserve System, speaks, the world’s markets move. As this book describes, after the 508 point stock market plunge on “Black Monday” in 1987, Greenspan restored investor confidence before the opening bell the next day by announcing that the Fed would pump funds into the banking system to prevent a collapse. Years later, immediately following a speech on December 5, 1996, in which Greenspan questioned the “irrational exuberance” of the soaring stock market, world markets plummeted by five percent.
In Words That Move the World’s Financial Markets-The Greenspan Effect, Greenspan’s speeches and writing are analyzed, along with worldwide reaction to them, to demonstrate how they have both lifted and sunk global financial markets. However, the book is more than just an historical account. The authors-David B. Sicilia, noted business historian, and Jeffrey L. Cruikshank, bestselling business writer-help investors decipher which of Greenspan’s words matter most. They examine his thinking on a variety of key economic issues with an eye toward anticipating how he will act tomorrow.
One might expect that a book devoted to the thought process of the world’s foremost practitioner of the “dismal science” (as John Maynard Keynes referred to economics) would make dull reading. However, Words That Move the World’s Financial Markets-The Greenspan Effect is a fascinating, lively, and in-depth look inside the head of the man who is one of the key shapers of the world economy.