Darwin, Charles, 262, 279 labor shifts and, 477, 479
Daschle, Tom, 7, 218, 223, 234 in 2000s, 228, 341, 379-84, 388
David, Paul, 474-75, 476n dividends, 238-39, 353, 398
debt: Doha round of trade negotiations, 315, 365,
highly liquid markets for, 151 398-99
Mexican crisis and, 156-61, 250, 380 Dole, Bob, 95, 158
ratio of income to, 232, 346^7, 359 dollar, U.S., 82, 102, 104, 110, 159, 161, 188-92,
servicing requirements for, 353 314, 353n
short-term consumer, 346—47 Argentine peso and, 342—43
see also loans; mortgages; national debt China's purchase of, 306n
debt leverage, 359-60 current account deficit and, 347, 353n
DeConcini, Dennis, 479 exchange rates of, 188, 259, 347, 349, 352-53,
Defense Department, U.S. (Pentagon), 34, 41^3 , 360-62
56 as reserve currency, 349
attacks on, 1, 2, 3 Russian purchase of, 329, 330
deflation, 228-29, 291,389 Domenici, Pete, 217, 220, 221, 236
de la Renta, Annette, 81 Dornbusch, Rudiger, 340
dela Renta, Oscar, 81 Dorrance, John, 78
DeLay, Tom, 243^4 dot-com boom, 162, 164, 224, 434
demand deposits, 85 dot-com crash, 5, 7, 228, 230, 485
democracy, 126, 130-31, 135, 252, 265, 310, 374, Douglas, Donald, 44
389,481,501 Douglas, Roger, 292
in corporate governance, 424, 425 Douglas, Stephen, 208
Dow Jones Industrial Average, 109, 110
education and, 406
globalization and, 376 drops in, 104, 154, 177-78, 179, 191, 207,
historical continuity in, 464-65 465-66
income inequality and, 365 peaks in, 164, 174,176,200
in India, 252, 318,322, 501 DRI, 98
populism and, 337, 344—45 Dubai Ports World, 274, 389n
in Russia, 325, 327-28, 332 Dukakis, Michael, 111, 112
Democrats, Democratic Party, 30, 96, 119, 152, Duma, 331
158, 208, 235-38, 245^8, 343, 504 Dutch disease, 257-59
budget surplus and, 184-85 Russia and, 329, 330, 332, 500
517
INDEX
Eastern Europe, 313, 318, 335, 365, 381-83, 409
emigration from, 382-83
reform in, 132-34, 137-38, 139,477
e-commerce, 190, 257
econometric models, 36-37, 124n, 174, 196
econometrics, 35-36
Economic Club of New York, 98
Economic Freedom Score, 276—77
economic growth, 13, 239-42, 311, 391, 436, 447
Clinton and, 114, 149, 155, 171, 182-83
natural resources and, 258, 268, 492
in 1970s, 68, 75, 76
in 1980s, 110, 111
property rights and, 250-51, 261, 311, 386, 388 89,
502
risk taking and, 273
three general characteristics of, 250—59
universals of, 249-66
economic nationalism, end of, 30
Economic Policy Board, 74, 91, 92
economics, 29-30, 98
of Adam Smith, 10, 15, 260-66
forecasting and, 46, 47^8 , 54-55, 60-61, 67, 79,
99, 165-66, 196, 207, 222, 223-24, 284,
467-69
increase in interest in, 43
Keynesian, 15, 30, 33, 55, 60, 72
textbook on, 57
women in, 74
Economics and the Public Welfare (Anderson), 364n
"Economics of Air Power, The" (Greenspan), 42
Economic Stabilization Program, 62
Economist, 14, 231, 257-58, 303, 368
Economist Intelligence Unit, 276
economy, U.S.:
dominance of, 34
fUture of, 492
9/11 s effects on, 2-10, 302, 491
politics and, 54-76, 86-94, 118-22, 142-50,
206-12,215-24,233-48
resiliency of, 6-7, 8, 10, 302, 491
World War II and, 29
Edison, Thomas, 475
education, 18, 278, 284, 308, 471, 500, 504
community colleges and, 402, 403
in East Asia, 313
elementary and secondary, 388, 403-7, 467, 468,
505
GI Bill and, 29, 34, 400
income inequality and, 398—408, 505
teachers and, 404-6
Edwards, Sebastian, 340
efficient-market theory, 465
Eichengreen, Barry, 376
Eichoff, Kathy, 74
Einstein, Albert, 24
Eisenhower, Dwight D., 54, 60n, 228
elections, 54, 57, 58, 247^8, 344
of 1968, 52, 57-59, 86, 216, 246
of 1976, 61n, 75-76, 81, 86, 145, 208, 211, 245
of 1980, 61n, 85-91,118, 216
of 1984, 89n, 97
of 1988,111-12
of 1992, 114, 121-22, 147
of 1994, 156, 211
of 1996, 144, 155
of 2000, 206, 208, 215, 233
of 2002, 236, 241
electricity, 320, 321, 449, 450, 453, 458, 461,
475-76
electronic payment systems, 2, 4, 373
electronics, 183,474
empiricism, 39, 41
employment, 30, 67, 110, 196, 273, 278
Clinton and, 143, 144, 145, 155
creation of, 169, 284, 319-20, 396
energy and, 448, 455
full, 103, 127, 167
future of, 470-71
income inequality and, 392—408
in India, 319
insecurity and, 169, 181, 268, 271, 306n, 314,
366,379,393,401,504
mobility and, 169-70
Employment Act (1946), 279
energy, 11, 207, 211, 241, 437-63, 469, 471n, 501
renewable, 453
see also coal; gas; natural gas; oil
Energy Department, U.S., 447, 457, 458, 459, 461
Energy Information Administration, U.S. (EIA), 459
Engel, Charles, 36In
Enlightenment, 11, 502, 505
British, 140n, 251, 260-61, 276
French, 260-61,273
Enron, 226, 374, 423-24, 429-30
environment, 278, 443, 450, 453
equity funds, 370, 425, 436, 489
Erhard, Ludwig, 132, 133, 281
ethanol, 458, 461
euro, 288, 329, 330, 350, 362n
Europe, 71, 109, 135, 183, 193, 195, 250, 258, 399,
469
elderly-to-worker ratio in, 410
executive salaries in, 426n
GDP in, 131, 283, 284, 315,499-500
postwar, 15, 280-81, 284-85, 291
safety nets in, 276-77, 280-81, 283, 285, 286,
291
steel of, 50-51
universal banks of, 199, 285
European Commission, 454
European Council, 500
European Union, 287, 288, 334n, 454
exchange rates, 15, 79, 258, 259, 292, 307
of Asian Tigers, 314
in China, 302-3, 306, 349
of dollar, 188, 259, 347, 349, 352-53, 360-62
fixed, 188, 315n
in Russia, 191,328-29, 330
exports, 258, 259, 313-16, 347, 366, 382-83, 386
Chinese, 296n, 303^ , 306n, 311, 315, 320, 384,
477-78
518
INDEX
debt service and, 360—61
oflndia,319,320
Russian, 329, 330
exuberance, 17, 369
irrational, 176-77, 201-2, 466
Fabian socialism, 264-65, 266, 283-84, 317, 480,
499, 501
Fannie Mae, 241, 242
farm bill, 234
fear, 17-18, 183, 191, 306, 347, 366, 369, 397, 440,
461,468,486,488
in Congress, 70
of creative destruction, 260, 376
stock-market crashes and, 465-66
terrorism and, 3, 469
Federal Bulldozer, The (Anderson), 57
Federal Deposit Insurance Corporation, 116
federal funds rate, 101-4, 103, 171, 178-79,
200-202
lowering of 118, 166, 167, 171, 192, 195,213,
228, 229
raising of, 85-86, 103-4, 111, 153-56, 174, 202,
377-78, 390
Federal Home Loan Bank system, 44
Federal Open Market Committee (FOMC), 85,
101-2, 108, 119, 150-56, 165-67, 171-74,
177-79,379,478-79,491
briefcase indicator and, 197-98
budget surplus and, 212-14
secrecy vs. transparency of, 150-53
see also federal funds rate
Federal Reserve, 31, 61, 83-86, 99, 100-130, 14267,169-
79, 191-251,489
AG's appointment to, 99, 100, 249, 372-73
AG's learning his job at, 100-101
AG's privileged access at, 11
Board of Governors meetings of 101, 103, 105
chairman's power at, 101
components of, 5
congressional problems of, 150-53
de Soto's visit to, 253-54
discount window of, 374n
electronic payment systems and, 2, 373
Riture policy of, 478-80, 482-83, 498
independence of, 93, 110-11, 142, 146, 478-79
Liu Mingkang's visit to, 308
LTCM intervention of, 193-95
magnitude of, 101
money supply and, 85, 92, 93
post-9/11 security at, 227
redundancies created by, 2-3
regulation and, 372-76
Treasury's turf war with, 198-99, 210
Y2K bug and, 203-4
Federal Reserve banks, 2-3, 5, 101, 103, 478
Federal Trade Commission, 33
Federer, Roger, 396
FedEx, 207
Fedwire, 374n
Feldstein, Martin, 77, 321
Fellner, William, 64
Ferguson, Roger, 3, 4
Fetterolf, C Fred, 428
fiber optics, 11, 168, 200, 366n, 492
Finance Ministry, Russian, 330
Financial Accounting Standards Board (FASB), 430,
435
financial panic of 1907, 28
Financial Services Modernization Act, 198-99
Financial Times, 240, 328, 409
Fleischer, Ari, 223
flexibility, economic, 255, 280, 283, 284, 307, 361,
362,376,430,469,491
"flippers," 231
flooding, 153,456,469
Foley, Tom, 417
food, 5, 136, 198, 253, 270, 321, 322, 339
manufacturing of, 49, 77-78
Foot, Michael, 283
Ford, Gerald "Jerry," 52, 59, 64-76, 113,151, 208 11,241,373
death of, 245, 247
deregulation and, 71-73, 82
economic recovery and, 67-73, 75-76, 83
in election of 1976, 61n, 75, 76, 81, 86, 245
Reagan's relationship with, 86, 90
Ford Motor, 5
foreign direct investment (FDI), 187-88, 311, 331,
386
in China, 12-13, 296, 304, 311, 322
in India, 280, 293, 322
Forest Hills, Queens, 39
Forrestal, Bob, 103
Fortune, 43, 44-45, 56, 346
Founding Fathers, 90, 140n, 251, 278, 345n, 408
Fountainhead, The (Rand], 40
401 (k)s, 166,198,422
Foy, Lewis, 78
Fraga Neto, Arminio, 341
France, 273, 287-88, 334n, 463, 499-500
economic freedom in, 277
Enlightenment in, 260—61, 273
fraud, 114-16, 208, 226, 241, 257, 371, 375, 431,
492
accounting, see Enron; WorldCom
Freddie Mac, 241,242
Friedman, Milton, 72, 85, 87, 91, 93, 265, 282, 405,
478
Friedman, Rose, 269-70, 405
Friedman, Steve, 240
Frist, Bill, 244
futures, 104, 107,368,441,451
G7 nations, 193, 195, 283, 312-13, 330, 334n, 369
G20 countries (Group of Twenty), 334, 342
Gaidar, Yegor, 127, 138
Gaines, Pam, 34
Gaines, Ruth, 34
Gaines, Tilford, 34
Galbraith, John Kenneth, 43
Gandhi, Mahatma, 317
5/9
INDEX
Garment, Leonard, 27, 57
gas, 6, 438, 460-62
lines for, 6, 82, 84, 457
price of, 207, 437, 460, 461, 462
tax on, 460, 461,462
Gates, Bill, 167,316,407
Gates, Thomas S., Jr., 60n
Gaz de France, 273
Gazprom, 324, 326, 326n
GDP (gross domestic product), 42, 121, 258-59,
366, 387, 469
of 1946 vs. 2006,492-93
in 1970s, 61
in 1990s, 153, 162, 166, 171, 174, 184
in 2000s, 225, 229, 243, 369
budget deficits and, 239
in China, 300, 306-8
conceptual proportion o￡ 435
current account imbalances as percentage of, 347,
351,354,361
energy and, 446, 447, 458-59
in Europe, 131, 283, 284, 315, 499-500
fUture, 413n, 469-70,473,476, 490,493, 495,
498, 501
globalization and, 396, 445
in India, 316-17, 321,322
investment as percentage of, 386, 387n
in Latin America, 335
nominal, 14, 319, 328, 356-59, 361, 386, 485
real, 232, 269, 300, 306, 316, 328, 335, 368, 386,
396, 416, 445, 458-59,469-70, 476, 498
of Russia, 328,330
savings as percentage of, 369, 386
shift toward developing countries of, 13, 459
Soviet, 128
taxes as percentage of, 215
G. D. Searle, 209
General Foods, 77-78
generally accepted accounting principles (GAAP),
430
General Motors (GM), 168, 402
General Theory of Employment, Interest and Money,
The (Keynes), 30
Geological Survey, U.S., 452
George, W. H. Krome, 428
George Washington High School, 24, 25, 29
Gephardt, Dick, 7
Gerashchenko, Viktor, 130
Gergen, David, 96-97, 148
Germany, 49, 180, 183, 287, 289n, 334n, 378, 460,
499-500
Argentina compared with, 335
current account surplus of, 351
economic freedom in, 276-77
job tenure in, 271
skilled-worker shortages in, 409
Germany, East, 125-26, 131-32, 286
Germany, Nazi, 24
Germany, West, 131-32, 281, 284-87, 381, 503
Gerstner, Lou, 153,404
Getz, Stan, 26
GI Bill, 29, 34,400,401
Gillespie, Dizzy, 27
Gingrich, Newt, 156, 158-59, 212
Ginsburg, Ruth Bader, 179
Glacier National Park, 454
Glass-Steagall Act, 198, 375-76
glide-path proposal, 218, 221-22
Global Crossing, 200
globalization, 10-14, 16, 18, 161, 162, 192-93,
248, 249-50, 260, 267, 361-72
Brown's views on, 283, 284
democracy and, 376
disinflation and, 228, 378-81
economic future and, 467, 476-78, 479, 484, 502
income inequality and, 393, 395-97, 398-99,
400
slowdown of, 365
technological factors in, 11-12
U.S. current account deficit and, 347, 350
global warming, 364, 453-56, 460, 468-69, 482
GNP (gross national product), 35, 46, 68-69, 71,
121
gold, 354,391,480
Goldman, Eric, 56n
Goldman Sachs, 109
Goldsmith, Anna, 20
Goldsmith, Nathan, 20
Goldsmith, Rose, 20, 21, 39, 74
gold standard, 13, 480-81, 482, 491
golf, 74,81, 119,298
Gong Xiantian, 300
Gonzalez, Henry B., 150-53
Goodman, Benny, 23, 27
Google, 168
Gorbachev, Mikhail, 134-36, 325, 327, 328, 332
as reformer, 125, 126, 130, 138
Gore,Al, 149,208,215,312
Gore, Tipper, 142
Gosbank, 130
Gosplan, 128-30
Gould, Jay, 139
government, 52, 364n, 481
Adam Smith's views on, 261, 262
Chicago school view of, 72
competition suppressed by, 273-75
jobs in, 273
Keynesian view of, 15, 30, 72
property rights vs., 254-55
Reagan's views on, 87, 92
recession policies of, 66-68, 70-71
regulation by, 15, 256-57, 264-65, 273, 279,
280, 291, 292, 372-76, 489, 502
U.S. current account and, 353-57
government spending, 35, 67, 184, 213, 216, 218,
219,234,242,280
9/11 and, 7,8-9
grain, 136, 264, 320,322
Gramm, Phil, 218, 221, 236, 244
Gramm-Leach-Bliley Act, 376
Great Britain, 259, 281, 291, 369n, 396, 502
common law of 252, 253, 497n
520
INDEX
energy and, 446, 463 Hawke, Bob, 292
Enlightenment in, 140n, 251, 260-61, 276 hedge funds, 193-95, 370-72, 441, 489
Fabian socialism in, 265, 266, 283-84, 317, 480, Heinz, John, 119
499, 501 Heinz, Teresa, 119
