Chancellor Gordon Brown has announced that Mr Alan Greenspan, who just retired yesterday as chairman of the US Federal Reserve Bank, will be serving the UK Treasury as an honorary adviser.
Mr Greenspan’s role with the UK Treasury will be on an advisory capacity, and he is expected to provide inputs and advice on global economic issues. While he will be attending regular meetings and be involved in regular exchanges of documents, the former Fed Chairman dies not expect a pay cheque from the British government.
Mr Greenspan, who was given an honorary knighthood in 2002, has recently launched his own economic consultancy firm, Greenspan Associates. He has served as Fed Chair for 18 years, and is best known by his influence in determining the US monetary authorities’ responses to pressing economic conditions, such as the stock market crash of 1987, the 1990s’ emerging market crisis, and the 2000 bursting of the dotcom bubble, among others.
He is the man known to have the most influence in how the world economy turns out, with the Fed’s monetary policy making resulting to increases or decreases in interest rats, which in turn influences inflation, and a host of other economic factors.
Company formation and business solutions experts view Mr Greenspan’s new role in the UK Treasury as a godsend to businesses in the country, particularly small and medium enterprises. Mr Greenspan was able to effectively keep the US economy stabilized during his stint as Fed Chair, and we expect his expertise to be very beneficial to the UK Treasury as well.