Paul Volcker on Alan Greenspan

Paul Volcker's position regarding Alan Greenspan was notably positive when Greenspan was nominated to succeed him as Chairman of the Federal Reserve Board in 1987. Volcker had announced his decision not to seek a third term, and the sitting President accepted the decision with reluctance. In the announcement, the President explicitly stated that Mr. Volcker had indicated his strong support for Dr. Greenspan as his successor. Volcker and Greenspan also shared a commitment to price stability, with Greenspan affirming the same commitment to holding down inflation that Volcker pursued. Volcker’s tenure was characterized by aggressively fighting high inflation, a goal he believed Greenspan shared and would continue to prioritize.

This support is further evidenced by the continuity in their expressed views on monetary policy goals, as documented in later analysis of the period. Both chairmen viewed price stability as a core objective, with Greenspan later articulating that it is a precondition for attaining maximum sustainable growth in the economy. While Volcker's legacy was defined by the painful disinflation he achieved, Greenspan’s tenure built upon that foundation, presiding over a long period of macroeconomic stability and low inflation following Volcker’s initial actions. The transition represented a peaceful, endorsed handover of the Federal Reserve's leadership during a critical time for monetary policy.