The Age of Turbulence

Have always liked reading since when I was a kid. Always wanted a study room with rows and rows of books and that is exactly what I have now! Only thing to go is a large bean-bag to sit and read comfortably.

Just finished The Age of Turbulence by Alan Greenspan and what a wonderful book! There is no shortage of economic prognostication from academics or research analysts but I have never come across one from a central banker. In the first half, he talks about his early careers and how to wind up in government service. The second half, at least to me, is more interesting. It starts with an explanation of past macroeconomic events, a diagnosis of current issues and some predictions for the future. His explanation of past events is fascinating especially on the current account and fiscal deficit of the US, the changing demographics and the lowering of inflation expectations over the last few years. If anyone just want the prediction, you can jump straight into chapter 25. While Greenspan talks about how the US has successfully weathered many crisis in the past, he does believe inflation will rise and that long term growth is likely around 3%. As aging demographics exacerbates the burden of social welfare programs, think social security and medicare in the US, governments will have no option but to print fiat money to finance their deficits and risks inflation.