“If the story of the past quarter century has a one-line plot summary, it is the rediscovery of the power of market capitalism.” Alan Greenspan’s blunt words capture the essence of his revealing book, The Age of Turbulence: Adventures in a New World. Drawing on his twenty-year tenure as chairman of the Federal Reserve and his decades of experience in finance, Greenspan has crafted a compelling work that easily outpaces the tired formula of the standard Washington memoir.

Greenspan first takes the reader through a recapitulation of his youth, early career, and time at the Federal Reserve. He then examines—always with insight, if sometimes excessive detail—the state of the world economy. But perhaps the most intriguing segment of this legendary prognosticator’s work is a set of fascinating predictions about how the United States economy may look in 2030. Greenspan’s narrative alternates in tone between frank autobiography and overt, perhaps excessive, didacticism, but as a synthetic view of the fabled Chairman’s life, policies, and predictions, it is unrivalled.

Greenspan’s Softer Side
Throughout the first half of the book, Greenspan opens up and reveals aspects of his upbringing that humanize his larger-than-life image. The reader learns of the young Greenspan: a typical boy growing up in Washington Heights with an interest in numbers and an intense love for music. Not many will know of this young Greenspan that before pursuing his interest in economics he cultivated his skill as a clarinet and saxophone player at the famed Juilliard School and later in a professional band.

The style of writing is remarkably personal. Perhaps foreshadowing his dramatic change in career, Greenspan recalls listening to a fellow band member and thinking: “I knew intuitively that I could never learn to do what he did.” The sense the reader gets of Greenspan’s youthful restlessness is well shown in the author’s description of collecting train schedules, hoping to build a new life outside of New York.

A Textbook Case
If the first half of the book leaves the reader contemplating the subtle human qualities that Greenspan developed in his younger years, the second half is entirely different, and very dry. Greenspan’s prose here would not seem out of place as the text of an Economics 101 lecture. Still, although people uninterested in economics might need to give this section a second read, Greenspan’s thoughts are always insightful.

One theme that Greenspan emphasizes throughout the book is the importance of free markets and democratic institutions—namely, property rights—to economic prosperity. He also stresses the importance of the Federal Reserve’s independence: For the U.S. economy to prosper, he argues, monetary policy must be secure from politicians’ natural desire for short-run solutions. Greenspan illustrates this by describing President George H.W. Bush's chagrin when the Federal Reserve lowered interest rates at a gradual rate during the recession of 1991.

The Forecaster Addresses the Future
In discussing a range of policy issues, Greenspan never deviates from the tone of a knowledgeable and friendly adviser; avoiding the invective or lavish praise typically associated with Washington memoirs.

Greenspan returns frequently to the effect of globalization on the U.S. economy. Ever the free-market avatar, he believes that Americans should not be worried about the loss of manufacturing jobs. He sees income inequality not as a result of government policy so much as it is a function of the return to a skills-based job market. Unless American education is improved, he warns, the income gap between skilled and unskilled workers will only grow.

Greenspan concludes with an optimistic prediction of steady growth in the economy through 2030. This conclusion, while logical, is perhaps overly optimistic in that it assumes there will be no major disruptive events (e.g., another terrorist attack) and that Congress will solve looming fiscal imbalances in Medicare and Social Security payments. Greenspan acknowledges the challenges faced by politicians, but he feels little sympathy: It is their duty to ignore “public cries for short-term solutions” and, when necessary, “convince constituencies that they are just plain wrong.” The admonishment may ring hollow from a man who never had to run for re-election. Still, throughout his life Greenspan has had a marked talent for being right, and we would do well to heed his warning.¨ ]]>