His delivery was far from electrifying, but Alan Greenspan’s utterances – in what became known as ‘Green speak’ have been pored over by market watchers for the last 18 years, in an effort to determine the Fed chairman’s opinion on key economic matters.

Behind the dry demeanour, he was also known to posess a sense of humour, as demonstrated at the unveiling of a new design for the $20 bill. “My only chagrin is that when I asked for a free sample, I was rebuffed,” Greenspan.

Ben Bernanke, a respected economist, is set to take over from Greenspan. Greenspan’s first Washington job was on Richard Nixon’s presidential election campaign in 1968. However, he achieved international fame as chairman of the US central bank.

Challenging period for organisation
Larry Lindsey served as top economic adviser to George W Bush, the US president. “If you think about any major corporation in the world and the Fed happens to be on the list of the most profitable – whenever the CEO leaves, it is a challenging period for the organisation. And that is even more so, when the CEO has been in office for 18 years, and not only that, but when the CEO is widely having been viewed as having been successful.

“So, following in the footsteps of a CEO who’s been successful in any company is a tough thing to do. That is complicated this time by the fact that the product of the Fed, which is monetary policy is one in which the market conditions is shifting,” Lindsey said.

Greenspan’s economic policies were aimed at free enterprise and less government involvement in the economy. He had also kept a sharp eye on inflation, lowering key interest rates to historic lows to keep the US economy humming. His reputation rose with the growth he presided over, a point Charles Calorimiris of Columbia University agrees with.

I kind feel sorry for Ben Bernanke because this is going to be a tough time to be coming in as Fed Chairman. Not just because he has a hard act to follow, Alan Greenspan, but also because he’s coming in in a point in the business cycle which is going to be particularly challenging.