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The Journal

[The Journal] Why Alan Greenspan Is Key to Understanding Today’s Fed

앨런 그린스펀이 오늘날의 연준을 이해하는 열쇠인 이유

The death of former Fed Chairman Alan Greenspan at 100 has renewed debate over his legacy of deregulation and economic stewardship — and how his philosophy is shaping the approach of incoming Fed Chair Kevin Warsh.

LEARNING TIP

영어 금융 저널리즘에서 중앙은행 총재나 정책 입안자를 묘사할 때 “towering figure(거물)” 또는 “architect of policy(정책 설계자)”와 같은 표현이 자주 등장합니다. 또한 “legacy(유산)”는 단순히 재산을 뜻하는 것이 아니라, 한 인물이 남긴 정책적·역사적 영향을 의미하는 핵심 단어입니다. 경제 기사를 읽을 때 이런 은유적 표현에 주목하세요.

TODAY’S STORY오늘의 이야기
The Greenspan Era: Growth, Optimism, and Deregulation그린스펀 시대: 성장, 낙관주의, 규제 완화

Alan Greenspan served as chairman of the Federal Reserve for nearly two decades, from 1987 to 2006, presiding over one of the longest economic expansions in American history. His tenure spanned the dot-com boom, the September 11 attacks, and the early 2000s recovery — periods during which he earned a near-mythical reputation for guiding markets with deft precision. Financial professionals and politicians alike treated his every word as a signal, and the phrase “Greenspan put” entered the financial lexicon to describe the widespread belief that the Fed would always step in to cushion markets from severe downturns.

Central to Greenspan’s worldview was a deep faith in deregulation,

VOCABderegulation: ~규제 완화The government’s deregulation of the banking sector allowed institutions to take on far greater risk. (정부의 은행 부문 규제 완화로 금융 기관들은 훨씬 더 큰 위험을 감수할 수 있게 되었다.)

the idea that markets, left largely to their own devices, would allocate capital more efficiently than government oversight ever could. He championed the removal of barriers separating commercial and investment banking, and he resisted calls to impose stricter controls on complex financial instruments such as derivatives. This philosophy produced years of robust growth but also quietly accumulated the vulnerabilities that would later prove catastrophic.

Greenspan also embraced the concept of irrational exuberance,

PHRASEirrational exuberance: ~비이성적 과열 (시장의 근거 없는 낙관적 과열 상태)The central banker warned that irrational exuberance in equity markets could lead to a painful correction. (중앙은행 총재는 주식 시장의 비이성적 과열이 고통스러운 조정으로 이어질 수 있다고 경고했다.)

a term he himself coined in a 1996 speech to describe unsustainable asset price inflation. The irony is that even after identifying the danger, he did not move aggressively to cool the markets, a decision critics would revisit years later.

KO앨런 그린스펀은 약 20년간 연방준비제도 의장을 지내며 미국 역사상 가장 긴 경제 성장기를 이끌었습니다. 그는 시장 자율을 신뢰하는 규제 완화 철학을 바탕으로 금융 장벽 철폐를 지지했습니다. 그러나 이 철학은 장기적으로 심각한 금융 취약성을 누적시켰다는 비판을 받습니다.
The Great Recession and the Reassessment of Greenspan’s Legacy대침체와 그린스펀 유산의 재평가

When the US housing market collapsed in 2007 and 2008 and triggered a global financial crisis, many economists and lawmakers pointed directly at the deregulatory framework Greenspan had championed. The proliferation of subprime mortgages

VOCABsubprime mortgages: ~서브프라임 모기지 (신용 등급이 낮은 차입자에게 제공된 고위험 주택 담보 대출)Banks packaged millions of subprime mortgages into securities and sold them to investors worldwide. (은행들은 수백만 건의 서브프라임 모기지를 증권으로 묶어 전 세계 투자자들에게 판매했다.)

and the explosive growth of unregulated derivatives markets were seen as direct consequences of the hands-off regulatory posture he had long promoted. The damage to households, financial institutions, and entire economies was staggering.

In a memorable congressional testimony in 2008, Greenspan acknowledged that he had found a flaw in the model

IDIOMflaw in the model: ~모델의 결함 (자신이 신뢰하던 이론이나 체계에 근본적인 오류가 있음을 인정하는 표현)After the crisis, the economist admitted there was a fundamental flaw in the model he had used to guide policy for years. (위기 이후 그 경제학자는 수년간 정책을 이끄는 데 사용했던 모델에 근본적인 결함이 있었다고 인정했다.)

— a striking public admission from someone who had spent decades arguing that financial markets were essentially self-correcting. The statement reverberated across the economics profession and sparked lasting debate about the limits of free-market ideology in financial regulation.

Yet even amid sharp criticism, Greenspan’s defenders argued that his record of sustained growth, low inflation, and skilled crisis management — including his response to the 1987 stock market crash and the fallout from the Russian debt default in 1998 — represented a genuine and enduring contribution to American economic stability. His legacy, in the eyes of many, remained deeply and irreconcilably mixed.

KO2008년 금융 위기 이후 그린스펀은 자신이 신뢰했던 규제 완화 모델에 결함이 있었다고 공개적으로 인정했습니다. 서브프라임 모기지와 파생상품 시장의 급팽창이 위기의 주요 원인으로 지목되었으며, 이는 그의 정책 방향과 직결된 것이었습니다. 그럼에도 지지자들은 그의 장기적인 경제 안정 기여를 높이 평가합니다.
Greenspan’s Ghost: How His Ideas Are Shaping Kevin Warsh그린스펀의 그림자: 케빈 워시에게 미치는 영향

Greenspan’s death has taken on fresh significance because the Federal Reserve is once again at a pivotal moment. Kevin Warsh, nominated to lead the Fed under the current administration, is widely seen as a chair who draws intellectual inspiration from the Greenspan era. Like Greenspan, Warsh is skeptical of heavy-handed regulation and favors giving markets considerable latitude to function without bureaucratic interference. For observers tracking the Fed’s ideological direction, the parallels are striking.

WSJ reporter Nick Timiraos explains that Warsh shares Greenspan’s instinct to prioritize price stability

VOCABprice stability: ~물가 안정 (중앙은행의 핵심 목표 중 하나로, 인플레이션을 낮고 예측 가능한 수준으로 유지하는 것)The central bank’s mandate requires it to maintain price stability even when doing so slows economic growth. (중앙은행의 임무는 경제 성장이 둔화되더라도 물가 안정을 유지하는 것을 요구한다.)

while also being wary of what he views as an overly interventionist Fed. This positioning matters enormously given the current environment — one marked by persistent inflation concerns, geopolitical uncertainty, and a White House that has been openly critical of Federal Reserve independence. The stakes for the institution’s credibility are exceptionally high.

Whether Warsh can navigate these pressures while avoiding the regulatory blind spots that ultimately defined the darker chapters of the Greenspan legacy remains the central question. Greenspan’s story, then, is not merely a historical footnote but an active template — for better or worse — that the new leadership will be measured against for years to come.

KO그린스펀의 사망은 새 연준 의장 케빈 워시가 취임을 앞둔 시점에 특별한 의미를 갖습니다. 워시는 그린스펀과 유사하게 시장 자율과 물가 안정을 중시하는 철학을 갖고 있습니다. 그린스펀의 유산은 앞으로 워시 체제의 연준이 어떻게 평가받을지를 가늠하는 기준점이 될 것입니다.
GLOSSARY단어장

Today’s Key Words

오늘의 핵심 단어 및 표현

VOCAB
deregulation
규제 완화
The reduction or elimination of government rules controlling an industry, intended to increase competition and efficiency.
산업에 대한 정부 규제를 줄이거나 없애는 것으로, 경쟁과 효율성 향상을 목적으로 한다.
Deregulation of the financial sector in the 1990s allowed banks to expand into new business areas.
1990년대 금융 부문 규제 완화로 은행들은 새로운 사업 영역으로 확장할 수 있었다.
PHRASE
irrational exuberance
비이성적 과열
A phrase describing an unrealistically optimistic mood in financial markets that drives asset prices far above their fundamental value.
자산 가격을 내재 가치 이상으로 끌어올리는 금융 시장의 근거 없이 낙관적인 분위기를 묘사하는 표현.
Analysts warned that irrational exuberance was pushing technology stock valuations to unsustainable levels.
애널리스트들은 비이성적 과열이 기술주 밸류에이션을 지속 불가능한 수준으로 끌어올리고 있다고 경고했다.
VOCAB
subprime mortgages
서브프라임 모기지
Home loans extended to borrowers with poor credit histories, carrying higher interest rates and significantly greater default risk.
신용 등급이 낮은 차입자에게 제공되는 주택 담보 대출로, 금리가 높고 채무 불이행 위험이 상당히 크다.
The collapse of the subprime mortgage market in 2007 triggered a wider banking crisis.
2007년 서브프라임 모기지 시장의 붕괴는 더 광범위한 금융 위기를 촉발했다.
IDIOM
flaw in the model
모델의 결함
An admission that the theoretical or analytical framework one has relied upon contains a fundamental error or oversight.
자신이 의존해온 이론적·분석적 체계에 근본적인 오류나 간과가 있음을 인정하는 표현.
The regulator conceded there was a flaw in the model after stress tests failed to predict the bank’s insolvency.
규제 당국은 스트레스 테스트가 은행의 지급 불능을 예측하지 못한 후 모델에 결함이 있었음을 인정했다.
VOCAB
price stability
물가 안정
A monetary policy objective of keeping inflation low and predictable so that households and businesses can plan with confidence.
가계와 기업이 자신 있게 계획을 세울 수 있도록 인플레이션을 낮고 예측 가능한 수준으로 유지하려는 통화 정책 목표.
The Fed reiterated its commitment to price stability despite political pressure to cut interest rates quickly.
연준은 금리를 신속히 인하하라는 정치적 압력에도 불구하고 물가 안정에 대한 의지를 재확인했다.