1.Alan Greenspan- Alan Greenspan is important to this book because the book was written by, and is about, Alan Greenspan. Alan Greenspan did a very good job in writing this book. He wrote it for anyone who has a very basic understanding of how the economy works. He also is a very good writer and writes very well.
2. The Federal Reserve- The Federal Reserve is important to this book because this job that made Alan Greenspan famous. Alan Greenspan’s job as the chairmen of the Federal Reserve was to monitor the economy and us a monetary policy to help right the economy. When Alan was the Chairmen of the Federal Reserve the United States economy was the best that it has ever been.
3. The Crash of 1989- The crash of 1989 is important to this book because it occurred right after Alan became the chairmen of the Federal Reserve. This stock crash was the biggest crash since the crash of 1929. This was Alan’s "baptism with fire" and, I believe, made him a better chairmen.
4. Bill Clinton- With Bill Clinton as president and Alan Greenspan as chairmen of the Federal Reserve the United States saw the most economically prosperous years in our history. Bill is important because with his policy towards the economy the Dow rose to over 5,000 points and the national dept turned into a projected surplus.
5. Capitalism- Without capitalism there wouldn’t be the federal reserve without capitalism our economy would be in ruins and we would all be impoverished. Capitalism is the roots of this book and the roots of our country. It signifies the core beliefs of our country freedom. Freedom to make goods, freedom to sell goods, freedom to purchase goods. Capitalism is what this book is all about.
6. Russia- After world war 2 Russia became a dominate power in the world and communism’s brightest star. Russia is important because it shows how flawed communism is. When Russia collapsed Alan was the chairmen of the Federal Reserve. The opening of the iron curtain showed the world the poverty that it contained and proved that capitalism is better than communism.
7. China- China is another example of how failed communism is. China used to be totally communist. But, when the country was communist it was very poor. During the recent decades China has been opening its economy up and is moving towards a more market economy. China also proves that capitalism is the best type of economy.
8. Smooth landing- This term was when Alan for the first time in history smoothly landed the economy during a recession. Recessions have always been sharp drops and not very smooth. But, Alan acted on the first signs of a recession so that once it hit the economy wouldn’t drop. Smooth landings were one of the things that made Alan famous.
9. Fiscal vs. Monetary- A fiscal policy deals with taxing and a monetary policy deals with the money supply. Over the years there has been much debate whether or not monetary policy should be used. There are congressmen that believe that the Federal Reserve shouldn’t exist. Considering that Alan worked in the Federal Reserve this was a issue in the book.
10. Townsend-Greenspan- Townsend- Greenspan was Alan Greenspan’s first real job as en economist. At this job he analyzed the economy and gave corporations useful hints about what the economy would do. For instance if a company was wondering whether or not to expand they might contact Townsend- Greenspan and ask for an economic review of the situation.