Dr. Greenspan's Amazing Invisible Thesis
Manoj Misra
http://online.barrons.com/article/SB120675340444773623.html?apl=y
SATURDAY, MARCH 29, 2008
Dr. Greenspan's Amazing Invisible Thesis
By JIM MCTAGUE
IN ALL LIKELIHOOD, ALAN GREENSPAN has more honorary Ph.D.s than any living
economist, which is no mean feat -- regardless of the chortling chorus of
critics who suggest he played midwife to the first great economic crisis of
the 21st century and thus is overly lionized as a financial genius. He has
honorary degrees enough to fill a fair-sized wall, including parchment from
Yale, Harvard, Notre Dame, Colgate, Wake Forest, Pennsylvania, Edinburgh
(Scotland). The Doctor-Doctor also received an honorary knighthood in 2002
at Balmoral from Queen Elizabeth II. Sorry to say, this accolade did not
come with a suit of armor.
Greenspan, who left the Fed in 2006 but is still consulted as a genius,
might find a metallic exoskeleton exceptionally comforting come May, when
the University of Texas Press publishes an unflattering book by Robert
Auerbach entitled Deception and Abuse at the Fed: Henry B. Gonzalez Battles
Alan Greenspan's Bank.
Auerbach, a veteran Fed basher, portrays Greenspan as a real-life Professor
Marvel -- who, through double-talk or "garblement," transformed himself into
a mighty economic wizard ą la Oz. Auerbach strongly implies that Greenspan's
1977 Ph.D. from New York University was obtained in a few months with little
more rigor than a matchbook-cover art degree and that Greenspan has kept his
Ph.D. thesis secret in order to protect his vaunted academic reputation.
Although Auerbach's evidence is circumstantial, it certainly is provocative.
For years, NYU told the public that, at Greenspan's request, the thesis was
locked away from public view in a vault at its Bobst Library. Auerbach
himself was told this in January 2004 when he tried to obtain a copy.
"Normally," writes Auerbach, "a Ph.D. dissertation in a field such as
economics must be in a form sophisticated enough to be usable in research,
must make a contribution to the existing body of knowledge, and must be
original, unpublished work. When approved, the Ph.D. candidate is normally
required to supply a bound copy of the dissertation, which remains in the
university's library and is available for future researchers to consult."
Auerbach, who has a Ph.D. in economics from the University of Chicago (Nobel
laureate Milton Friedman was his thesis adviser), kept requesting access to
the papers until NYU's provost, David McLaughlin, finally admitted in August
2005 that, "I can tell you that it was the practice of the business school,
during the 1970s, not to deposit dissertations with the library. Thus, a
copy of Greenspan's dissertation is not in the Bobst Library. We suggest
that you contact Greenspan directly in order to obtain a copy of his
dissertation."
Writes Auerbach: "Evidently, he wanted me to believe that NYU business
Ph.D.s just took their dissertations home and put them in a drawer."
Auerbach says in a footnote that he made no request to Greenspan for a copy
because "the publication of a scholarly addition to existing knowledge is
the obligation of the university and the Ph.D. candidate."
Barron's is not bound by such academic niceties and requested a copy from
Greenspan, as well as a response to Auerbach's assertions. The Maestro's
spokeswoman told us that his busy travel schedule precluded him from getting
back to us in time for our deadline. As for two inquires to the provost,
they went unanswered.
Greenspan, writes Auerbach, obtained his NYU doctorate in a few months, 27
years after earning a master's there. He had just completed a stint as
chairman of the Council of Economic Advisers for both presidents Nixon and
Ford, when inflation went wild. His performance hardly suggested that he'd
one day become a legendary Fed chairman.
Exactly how Greenspan wrapped up his NYU studies in such a short period is
unclear, but it appears that his thesis wasn't especially time-consuming.
Auerbach cites an earlier biography that says that Greenspan submitted --
instead of a normal Ph.D. dissertation -- some papers totaling 176 pages
that he entitled Papers on Economic Theory and Policy. Among them was at
least one he'd written earlier.
Greenspan and Auerbach, as you have gathered, hardly are boon companions.
Auerbach was an aide to Henry Gonzalez when the quixotic Texas Democratic
populist, who chaired the powerful House Banking Committee, decided to make
the Federal Reserve more accountable to the taxpayers. (Full disclosure:
Auerbach has been a source for this writer for years, and writes kindly of
me in the book.)
The Fed, which considers itself as sacrosanct as the Supreme Court, treated
Gonzalez at best as a mere nuisance and at worst as a garrulous fool.
In the end, the institution paid a steep price for its arrogance: Gonzalez,
who is dismissed in a few lines in Greenspan's recent memoirs, discovered
heaps of dirty laundry, including the then-Fed chief's infamous 1993 attempt
to mislead the Banking Committee about the existence of detailed transcripts
of 17 years' worth of Federal Open Market Committee meetings.
Auerbach contends in his book that Greenspan's invisible Ph.D. thesis is
symbolic of a career marked by prevarication, cover-ups and a general
aversion to making the Fed more publicly accountable. He calls on Congress
to "bring the Fed into the Democracy" because "unelected Fed decision makers
should not decide what the public should know about how they are running the
central bank."
Unlike Greenspan, Auerbach writes: "No one should be given the immense
powers bestowed on the Board of Governors and the FOMC without having his or
her credentials publicly examined."
If only Greenspan's thesis were available to examine.
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Lubow
Greenspan or the White House?
-- Lubow.
MM> SATURDAY, MARCH 29, 2008
MM> Dr. Greenspan's Amazing Invisible Thesis
MM> By JIM MCTAGUE
MM> IN ALL LIKELIHOOD, ALAN GREENSPAN has more honorary Ph.D.s than any
MM> living economist, which is no mean feat -- regardless of the chortling
MM> chorus of critics who suggest he played midwife to the first great
MM> economic crisis of the 21st century and thus is overly lionized as a
MM> financial genius. He has honorary degrees enough to fill a fair-sized
MM> wall, including parchment from Yale, Harvard, Notre Dame, Colgate, Wake
MM> Forest, Pennsylvania, Edinburgh (Scotland). The Doctor-Doctor also
MM> received an honorary knighthood in 2002 at Balmoral from Queen
MM> Elizabeth II. Sorry to say, this accolade did not come with a suit of
MM> armor.
MM> Greenspan, who left the Fed in 2006 but is still consulted as a genius,
MM> might find a metallic exoskeleton exceptionally comforting come May,
MM> when the University of Texas Press publishes an unflattering book by
MM> Robert Auerbach entitled Deception and Abuse at the Fed: Henry B. Gonzalez
MM> Battles Alan Greenspan's Bank.
MM> Auerbach, a veteran Fed basher, portrays Greenspan as a real-life
MM> Professor Marvel -- who, through double-talk or "garblement,"
MM> transformed himself into a mighty economic wizard à la Oz. Auerbach
MM> strongly implies that Greenspan's 1977 Ph.D. from New York University
MM> was obtained in a few months with little more rigor than a
MM> matchbook-cover art degree and that Greenspan has kept his Ph.D. thesis
MM> secret in order to protect his vaunted academic reputation.
MM> Although Auerbach's evidence is circumstantial, it certainly is
MM> provocative. For years, NYU told the public that, at Greenspan's
MM> request, the thesis was locked away from public view in a vault at its
MM> Bobst Library. Auerbach himself was told this in January 2004 when he
MM> tried to obtain a copy.
MM> "Normally," writes Auerbach, "a Ph.D. dissertation in a field such as
MM> economics must be in a form sophisticated enough to be usable in
MM> research, must make a contribution to the existing body of knowledge,
MM> and must be original, unpublished work. When approved, the Ph.D.
MM> candidate is normally required to supply a bound copy of the
MM> dissertation, which remains in the university's library and is
MM> available for future researchers to consult."
MM> Auerbach, who has a Ph.D. in economics from the University of Chicago
MM> (Nobel laureate Milton Friedman was his thesis adviser), kept
MM> requesting access to the papers until NYU's provost, David McLaughlin,
MM> finally admitted in August 2005 that, "I can tell you that it was the
MM> practice of the business school, during the 1970s, not to deposit
MM> dissertations with the library. Thus, a copy of Greenspan's
MM> dissertation is not in the Bobst Library. We suggest that you contact
MM> Greenspan directly in order to obtain a copy of his dissertation."
MM> Writes Auerbach: "Evidently, he wanted me to believe that NYU business
MM> Ph.D.s just took their dissertations home and put them in a drawer."
MM> Auerbach says in a footnote that he made no request to Greenspan for a
MM> copy because "the publication of a scholarly addition to existing
MM> knowledge is the obligation of the university and the Ph.D. candidate."
MM> Barron's is not bound by such academic niceties and requested a copy
MM> from Greenspan, as well as a response to Auerbach's assertions. The
MM> Maestro's spokeswoman told us that his busy travel schedule precluded
MM> him from getting back to us in time for our deadline. As for two
MM> inquires to the provost, they went unanswered.
MM> Greenspan, writes Auerbach, obtained his NYU doctorate in a few months,
MM> 27 years after earning a master's there. He had just completed a stint
MM> as chairman of the Council of Economic Advisers for both presidents
MM> Nixon and Ford, when inflation went wild. His performance hardly
MM> suggested that he'd one day become a legendary Fed chairman.
MM> Exactly how Greenspan wrapped up his NYU studies in such a short period
MM> is unclear, but it appears that his thesis wasn't especially
MM> time-consuming. Auerbach cites an earlier biography that says that
MM> Greenspan submitted -- instead of a normal Ph.D. dissertation -- some
MM> papers totaling 176 pages that he entitled Papers on Economic Theory
MM> and Policy. Among them was at least one he'd written earlier.
MM> Greenspan and Auerbach, as you have gathered, hardly are boon
MM> companions. Auerbach was an aide to Henry Gonzalez when the quixotic
MM> Texas Democratic populist, who chaired the powerful House Banking
MM> Committee, decided to make the Federal Reserve more accountable to the
MM> taxpayers. (Full disclosure: Auerbach has been a source for this writer for
MM> years, and writes kindly of me in the book.)
MM> The Fed, which considers itself as sacrosanct as the Supreme Court,
MM> treated Gonzalez at best as a mere nuisance and at worst as a garrulous
MM> fool.
MM> In the end, the institution paid a steep price for its arrogance: Gonzalez,
MM> who is dismissed in a few lines in Greenspan's recent memoirs,
MM> discovered heaps of dirty laundry, including the then-Fed chief's
MM> infamous 1993 attempt to mislead the Banking Committee about the
MM> existence of detailed transcripts of 17 years' worth of Federal Open
MM> Market Committee meetings.
MM> Auerbach contends in his book that Greenspan's invisible Ph.D. thesis
MM> is symbolic of a career marked by prevarication, cover-ups and a
MM> general aversion to making the Fed more publicly accountable. He calls
MM> on Congress to "bring the Fed into the Democracy" because "unelected
MM> Fed decision makers should not decide what the public should know about
MM> how they are running the central bank."
MM> Unlike Greenspan, Auerbach writes: "No one should be given the immense
MM> powers bestowed on the Board of Governors and the FOMC without having
MM> his or her credentials publicly examined."
MM> If only Greenspan's thesis were available to examine.