future of, 499-500 Heller, Walter, 54-55, 77
housing in, 231 Henderson, Fletcher, 23
Labour Party in, 265, 266, 281, 283, 499 Henreid, Paul, 20
Great Depression, 32, 70, 105, 280, 281, 284, 366, Hepburn, Katharine, 20
481 Heritage Foundation, 275-76
AG's youth in, 19, 20, 24-25 Hewlett-Packard, 167
Keynes and, 15, 30 Hillcrest Country Club, 81
Great Society, 55, 504 Hiss, Alger, 34
Greenspan, Alan: Hollings, Fritz, 221
briefcase indicator of, 197-98 Hollywood, 20, 27, 81
as CEA chairman, 63-76, 373 home bias, 350-52, 355, 361, 365
childhood hobbies of, 21-23 Homeland Security Act, 227n
as corporate director, 77-80,100, 101, 209, 371, homeland security program, 227, 234, 238
427-28 Hong Kong, 13, 188, 253, 258, 276, 304, 311
daily routine of, 74-75 education in, 399
education of, 24-25, 29-39, 45 Hoover, Herbert, 44, 70,109
family background of, 19-21, 23 household:
first economics jobs of, 31-34 equity risk of, 175
first marriage of, 39-40, 45 financial deficit, 354
as golfer, 74,81, 119 financial surplus, 355
health problems of, 25-26, 29, 62, 74 investment of, 356, 385
income of, 39, 43 savings of, 13, 270n, 348-49, 385-86
inquisitiveness of, 10, 28 spending of, 13, 14,225,349
irrational exuberance speech of, 176-77, 201-2 U.S. current account and, 346^17, 353-60
as libertarian Republican, 208, 238, 496 House of Representatives, U.S., 7, 9, 156, 158, 199,
math skills of, 21,24, 28-32 222, 223, 246
media coverage of, 9, 115-16, 177, 180, 192, Agriculture Committee of, 234
197-98, 201, 207-8, 220-22, 240 Appropriations Committee of, 65
as musician, 23-28, 30-31, 57, 97 Banking Committee o{ 113, 150,151-52,194,200
philosophical beliefs of, 39, 41, 52-53 Budget Committee of, 235-36
in political campaigns, 52, 57-59, 86-89, 216 Clinton budget and, 148, 149
reading of, 28, 38, 40 Republican control of, 211, 243
as regulator, 256, 372-76 Social Security and, 417
second marriage and honeymoon of, 179-81 Ways and Means Committee ofj 238
sideman psychology o￡ 28, 30 housing, 86, 153, 229-32, 292, 296,378, 439, 486
speeches of, 123, 124, 176-77, 192 see also mortgages
as tennis player, 73, 74 Howard, John, 293
writing of, 33,42, 43, 55-56, 57, 97 HSBC, 298
Greenspan, Herbert, 19-21, 23, 28 Hubbard, Al, 240
Greenspan Commission, 94-96 Hubbard, Glenn, 236
Grunwald, Henry, 81 Hu Jintao, 300, 302
Grunwald, Louise, 81 human nature, 16-17, 18, 87, 181, 199, 214, 249,
Gulf oil states, 258 271,490-91,505
Gulf War (1990-91), 113-14, 448 Hungary, 126
Gurria, Jose Angel, 341 Hurricane Katrina, 27, 437, 452
Hurricane Rita, 437
Hagel, Chuck, 244 Hussein, Saddam, 226-27, 463
Haig,Al,63 hybrid cars, 458,461-62
Halpert, Wesley, 20 hyperinflation, 133, 237, 305, 339, 380
Hamilton, Alexander, 176 in Latin America, 334, 340
Hamilton Project, 405
Hannibal, 264 IBM, 51, 153, 167,268
happiness, 269-71 Ibn Saud, King, 439
Harriman, W Averell, 31 Illarionov, Andrei, 323, 324, 325
Harvard Law Review, 497 immigration, 258, 382-83, 499-500
Harvard University, 269 to United States, 19, 24, 157, 279-80, 397, 400,
Hastert, Dennis, 7, 9, 234, 243-44 406-8, 410,418, 468, 470, 505
521
INDEX
imports, 296n, 303, 314, 315, 319, 366, 382,401
of United States, 306n, 347, 349, 477-78, 479
income, 183, 268-72, 292, 314, 455
concentration of, 232, 272, 306-7, 365, 392,
397^00,401 n, 406,407
distribution of, 17, 398, 400-401, 505
earned vs. not earned, 394
fUture, 255, 356
gas prices and, 462
global per capita, 259, 268
happiness and, 269-71
in Latin America, 260, 314, 336
ratio of debt to, 232, 346-47, 359
ratio of spending to, 269-70
in Russia, 330
savings and, 270, 386n
income inequality, 336, 392^08, 468-69, 499
education and, 398^08, 505
immigration and, 400, 407-8
incomes policies, 15-16, 61
Independent Bankers' Association, 44
India, 280, 293, 316-22, 334n, 389, 503
democracy in, 252, 318, 322, 501
Riture of, 501,502
license raj in, 317, 320, 322
market capitalism in, 316, 318, 322, 365, 503
outsourcing to, 315, 319, 477n
property rights in, 252, 319
socialism in, 265, 316-19, 382, 501
technology in, 388
individuals, individualism, 40, 51, 260-61, 262, 388
rights of, 252, 261, 297-98,407-8,468, 496-97,
505
Indonesia, 188, 275, 312, 334n
Industrial and Commercial Bank of China, 307
Industrial Revolution, 162, 261, 264, 356
infant mortality, 259, 300-301
inflation, 12, 13-14, 35, 82-86, 163, 176,196, 255,
380-84,389-90,476
in 1970s, 60-63, 65-66, 67, 71, 73, 75, 82-85,
94,102,366
in 1980s, 102,104, 111,113
in 1990s, 120, 122, 144, 150, 153, 155, 161, 167,
170-74, 178, 192,200,328,390
in 2000s, 207, 218, 228, 377, 381, 382,447,477,
481
double-digit, 62, 82, 101, 380, 482,483
expectations of, 154, 228, 377, 380-84, 387-88,
390, 479, 484
fUture of, 478-85, 491, 498
in Latin America, 334, 340^3
in Russia, 138,328-29,330
Social Security indexed to, 94, 125
in Soviet Union, 126, 136
information technology, 161, 164-73, 183, 192,
213,214,314,395,494-95
home bias and, 350
in India, 319-20, 322
Institutional Revolutionary Party (PRI), 275
insurance, 369, 398n, 418
deposit, 115,257,373-74
unemployment, 280, 305
insurance companies, 198-99
Intel, 433
intellectual property, 255, 468, 494-98
intelligence, human, 17, 505
interest rates, 112, 188, 236-37, 338, 362, 367,
476, 491
in China, 307
the "conundrum" and, 377-78, 380-81, 382,
383-85,387-88,390-91
double-digit, 93, 483
federal funds, see federal funds rate
lowering of, 5, 10, 12, 14, 61, 108, 120, 122, 167,
171, 187, 192, 195, 196, 200, 207, 212-13,
228, 478
mortgage, 231, 378
nominal, 13,384,484
raising of, 85-86, 103, 161, 173, 200-202, 478,
479,484,486,491
real, 13, 384-85, 387, 478, 484
short-term, 85, 108, 114, 119, 121, 143, 154-55,
179,228,242
stock-market effects of, 378
interest rates, long-term, 143^4, 377-78, 477
Clinton and, 149
decline of, 14, 147, 207, 225, 228, 378, 380,
386-87,390-91,479,486
raising of, 9, 84, 114,484
International Energy Agency (IEA), 438n, 458n,
459, 460
International Monetary Fund (IMF), 29-30, 84,
276, 286, 298, 382, 386
antiglobalization dissidents and, 267
bailouts and, 158-59, 188-91, 193
Soviet access to, 135, 137
Internet, 11, 58, 167, 171,471,474,493
China's use of, 299, 300
spreading use of, 171, 190, 397
stock and, 164, 168, 179, 196, 197, 200
inventories, 69-70, 169, 207, 385
just-in-time, 474, 490
natural gas, 450
oil, 440-42, 447n,458n
steel industry and, 46-47
investment, 198-99, 348-53, 356, 385, 386-87
capital, 165, 168, 172,361
globalization and, 367, 369, 499
home bias and, 350-52, 355, 361, 365
negative, 354n
savings vs., 348^9, 385, 386-87
see also foreign direct investment
investment banks, 108, 370-71, 489
invisible hand, 15, 89, 248, 262, 325, 488, 490
Iran, 13, 82
oil of, 84, 440, 444, 445, 463
Iranian Revolution (1979), 82, 84, 445
Iran-Iraq War (1980-90), 83
Iraq, 114,459,463,469
Iraq war (2003-), 227, 238, 239, 240, 243, 463
Ireland, 289n
irrational exuberance, 176-77, 201-2, 466
522
INDEX
Islamic fundamentalists, 82, 84
Israel, 446, 469
Italy, 273, 277, 287, 334n
Jackson, Philip, 116
Japan, 71, 109, 193, 258, 289, 334n
banks of, 189, 199, 289-90, 291, 431
current account surplus of, 351
deflation in, 228-29, 291, 389
elderly-to-worker ratio in, 410
energy in, 446, 460
executive salaries in, 426n
future of, 500
job tenure in, 271, 289
steel of, 49, 50-51,268
United States compared with, 102, 174, 175,
177,183-84
U.S. Treasury obligations purchased by, 349
Jerome, Henry, 26-27
orchestra of, 26-28, 57
Jews, 19, 24
Jiang Zemin, 295, 298, 302, 305
jobs, see employment; unemployment
Johnson, Karen, 250
Johnson, Lyndon B., 55-56, 60, 235, 246, 504
Johnson, Manley, 105, 107
Jones, Quincy, 202
JPMorgan, 77-80, 100, 257, 371
junk bonds, 115, 485
just-in-time production, 6, 46, 213, 474, 490
Kahn, Alfred, 71
Kaiser, 49
Kansas City Fed, 485
Kaplan, Bess, 74
Kavesh, Robert, 30
Keating, Charles, 115
Keating Five, 115
Keehn,Si, 103, 105
Kelley, Edward "Mike," 204
Kemeny, John, 24
Kemp, Jack, 92, 116, 237-38
Kennedy, Edward "Ted," 82, 85, 245
Kennedy, John F., 54, 73, 145, 431
Kennedy, Joseph P., 431
Keynes, John Maynard, 15, 30, 55, 306
Keynesians, 15, 30, 33, 55, 60, 72, 240, 284
Khmer Rouge, 65
Khodorkovsky, Mikhail, 324
Khrushchev, Nikita, 126, 134
Kim Dae Jung, 189
Kirkland, Lane, 95
Kissinger, Henry, 24, 59, 65, 81, 90-91
Kissinger, Nancy, 81
Klaus, Vaclav, 133-34
Kohl, Helmut, 180,286
Kohn, Don, 102,250
Korea, 34, 38, 41, 311-12, 320
see also North Korea; South Korea
Korean War, 41^2 , 46, 55, 243, 311
Kraft, Joseph, 76
Kudrin, Alexei, 330
Kurtz, Thomas, 24
Kuwait, 114, 43 8n
Kyoto Protocol, 454-55
labor, 34, 82
in China, 13,477
cost of, see wages
future of, 470-71, 480, 484
labor, division of, 12, 256, 262, 263, 300, 347, 502
globalization and, 364
U.S. current account deficit and, 353, 356, 359,
361
Labor Department, U.S., 8, 172, 270n, 394n
labor unions, 15, 72, 149, 282, 283, 284-85, 287,
318,381,400
Labour Party, British, 265, 266, 281, 283, 499
La Follette Progressive movement, 480
laissez-faire capitalism, 40, 52, 57, 61, 273, 278-79,
323, 368, 504
land, 253-54, 304, 309, 321, 337
Larson, Robert, 116
Latin America, 80, 189, 313
debt crisis in (1982), 157, 250
immigrants to United States from, 279-80
income in, 260, 314, 336
populism and, 255, 280, 334-35
Lebanon, 469
Leblang, David, 376
Lee Kuan Yew, 312
Lefevre, Edwin, 28
Leibniz, Gottfried Wilhelm von, 496
Lenin, 306, 504
Leonowens, Anna, 312-13
Leontief, Wassily, 128
Level 3, 200
Levey, Stan, 27
Levittown, 33-34
Lewinsky, Monica, 187
libertarianism, 40, 87, 208
life expectancy, 263, 268, 278, 301, 363, 454
retirement and, 409, 410-11, 419
Limbaugh, Rush, 158-59
Lincoln, Abraham, 208
Lincoln Savings, 115-16
Lindsey, Larry, 7, 9, 166, 241
Li Peng, 297, 435
Lisbon Agenda, 288-89, 500
Liu Guoguang, 299
Liu Mingkang, 308
Livermore, Jesse, 28
loans, 117, 137, 187, 191, 358, 360
in China, 307, 308, 309
see also mortgages
Locke, John, 140n, 251-52, 502
logical positivism, 39, 41, 52
London, 24, 130,369n, 499
Long, Huey, 344
Long, Russell, 344
Long-Term Capital Management (LTCM), 193-95,
371
523
INDEX
Lopez Obrador, Andres Manuel, 341
Los Angeles, Calif, 81, 406
Lott, Trent, 7
Lynn, Jim, 67, 73
MacArthur, Douglas, 38
McCain, John, 115,244
McCarthy, Joseph, 34
McDonald's, 402
McDonough, Bill, 193,194
McFarlane, Ian, 292
Mackey, Judith, 74
McTeer, Bob, 212
Maddison, Angus, 335
Maestro (Woodward), 224
Mahathir Mohamad, 312
Malan, Pedro, 334-35, 341
Malaysia, 188, 260, 312, 330
Mandel, Johnny, 27
Mandela, Nelson, 153
manufacturing, 314, 383, 486, 493
in China, 304-5
in India, 320, 322
in United States, 5-6, 46, 49-50, 62, 77-78, 103,
306n, 395-96, 470, 475-76, 495n
Mao Zedong, 299, 302, 504
market economies, market capitalism:
accurate accounting in, 432-33
central planning in, 62
central planning vs., 12, 123, 125, 127-28, 129,
131-34, 139, 141
conflicted attitudes toward, 261, 268-72
creative destruction and, see creative destruction
Fed's orientation toward, 373
French vs. American views of, 273
Riture of, 464-506
historical continuity in, 464-65
institutional foundations of, 139
Keynes's view of, 30
in Latin America, 337, 338
modes of, 267-93
property rights in, see property rights
rediscovery of, 14, 281
requirements of, 251-55
Smith and, 10, 260-66
market revolution (shock therapy), 132-34, 138-40
Marshall Plan, 281
Martin, William McChesney, Jr., 111
Marx, Karl, 140n, 252, 264, 299, 300, 339
Maslyukov, Yuri, 128
math education, 399, 404-6
Matlock, Jack, 123, 124
Mattingly, Virgil, 375
Mayaguez, 65
MCI, 200
Meany, George, 70-71
Medicaid, 418, 418n
medical insurance, 398n, 418
Medicare, 18, 95, 185, 211, 215, 237, 280, 41 In,
414-19,498,504
prescription drug benefit for, 233, 243, 414, 415
medicine, 257
Meese,Ed,90,91
Meet the Press (TV show), 119
Melzer,Tom, 103, 173
Menem, Carlos, 342
Menezes, Fradique de, 258
Mengers, Sue, 81
mercantilism, 261, 263-64, 354
mergers and acquisitions, 425, 432, 436
Merkel, Angela, 500
Merrill, Dina, 78
Merrill Lynch, 257, 316
Merton, Robert, 193
Mexico, 275, 330, 334n, 335
energy and, 438n, 446, 456, 459
inflation in, 341,380
NAFTA and, 149, 157
near default of, 156-61, 250, 341, 380
populism in, 336-37, 341
Meyer, Laurence, 162
Microsoft, 167,494
military spending, 41-43, 56, 143, 146, 234, 238,
243
millennium events, 202-5
Miller, Glenn, 23-24
Miller, Paul, 428
Miller, William "Bill," 83, 84, 125
Miller, Zell, 218
Minehan, Cathy, 214
Mitchell, Andrea, 2-5, 80, 177, 198
AG's dating of, 97, 102, 115-16, 119, 157-58
marriage and honeymoon of, 179-81
as NBC reporter, 2,4, 96-98, 115-16, 148, 197
Mitchell, Joan, 39-40, 45
