[Congressional Record (Bound Edition), Volume 152 (2006), Part 1]
[Senate]
[Page 373]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       TRIBUTE TO ALAN GREENSPAN

  Mr. FRIST. Mr. President, today marks the end of one of the most 
outstanding public service careers in this country's history.
  Today, Dr. Alan Greenspan steps down as Chairman of the Board of 
Governors of the Federal Reserve System.
  These last 18 years many accolades have been showered on Chairman 
Greenspan's leadership in steering monetary policy--a period that 
included some very difficult waters.
  But I think the true strength of his leadership can be measured by 
the numbers. The Chairman, I understand, devours statistics in helping 
to make sound decisions. And the measurable results have been 
impressive.
  Since being appointed to the chairmanship--first by President Reagan 
in August 1987, and then, later, by Presidents George Bush, Bill 
Clinton, and George W. Bush--U.S. economic growth has averaged 3 
percent per year.
  The annual rate of increase in consumer prices has similarly averaged 
a low 3 percent annually.
  If price stability is the key responsibility of our independent 
Federal Reserve System, one can only conclude that Chairman Greenspan's 
leadership has been extraordinarily successful.
  Meanwhile, the number of payroll jobs in America has grown from 102 
million when he took on the chairmanship to nearly 135 million today. 
The unemployment rate has averaged slightly more than a low 5\1/2\ 
percent.
  But Chairman Greenspan has been more than an outstanding captain of 
the economic seas. He has been a shrewd analyst and forecaster, shaping 
the economic future.
  One key statistic that the Chairman brought to the public's 
attention--and particularly to those of us involved in the policy 
process--is the issue of productivity.
  He was the first to recognize that the rise of productivity allowed 
unemployment to fall lower than many economists thought possible 
without stoking the fires of inflation, therefore, allowing the Federal 
Reserve to keep interest rates low.
  Over his tenure, productivity growth averaged 2.2 percent per year, 
nearly double the rate of growth in the seventies and eighties.
  There were major challenges along the way:
  Only 2 weeks after taking his position at the Federal Reserve, the 
stock market dropped nearly 23 percent--marking the worse 1-day decline 
in the market's history.
  There was an Asian and Russian financial crisis in 1998.
  And, of course, the tragedy of September 11 that hit directly at the 
heart of our financial system.
  In each instance, quick action by the Chairman to provide liquidity 
into the market through interest rate decisions allowed for the 
economy, indeed the global economy, to right itself, stabilize, and 
continue to grow.
  One measure of the Chairman's counsel has been his highly anticipated 
testimonies before the Committees of Congress. Those hearings have 
always been sold out, headliner events. We have always listened very 
closely.
  On a more personal level, it has been my distinct pleasure to have 
gotten to know Alan Greenspan and discuss informally with him the 
challenges that confront this country--in particular, our health care 
system and the increasing costs of health care, pensions and public 
entitlements.
  I will miss those discussions with Mr. Greenspan. But I am confident 
that he will continue to offer his wise counsel to those who request 
it. For he will always remain, at heart, a public servant seeking to 
better the lives of citizens throughout this country and the world.
  A counselor to Presidents and Congresses, a thoughtful thinker, 
flexible and non doctrinaire, Chairman Greenspan possesses the rare 
ability to communicate complicated ideas clearly and to make difficult 
decisions under complex, dynamic and uncertain conditions. For 18 
years, he has done so consistently. For 18 years, he has done so 
masterfully.
  Alan Greenspan leaves the Federal stage a giant in his field.
  And if my high praise suggests a dash of ``irrational exuberance,'' 
so be it. Chairman Greenspan is deserving of our highest regard.
  On the passing of John Maynard Keynes, the British economist Alfred 
Marshall wrote that: ``a great economist must possess a rare 
combination of gifts: mathematician, historian, statesman, 
philosopher.'' Alan Greenspan possesses each in large measure.
  Thank you, Mr. Chairman, for your outstanding service to your country 
and to your fellow Americans.
  On behalf of the U.S. Senate, best wishes to you in all of your 
future endeavors.

                          ____________________