The invisible hand of Alan Greenspan: The development of financial regulation in the United States during 1987-2006

This thesis researches the development of financial regulation in the United States during the period Alan Greenspan was chairman of the Federal Reserve (1987-2006). Furthermore, it assesses the role of Greenspan in this process, because Greenspan was a strong supporter of the free market and may have exerted his influence to direct the development of financial regulation. This thesis researches seven important pieces of financial regulation of that period and finds that, although during the first years the market became more regulated, the overall trend was that the financial sector was becoming more deregulated. By comparing the implications of these regulations with the views of Greenspan, as stated in his autobiography The Age of Turbulence: Adventures in a New World, it becomes clear that Greenspan’s views were very similar to the trend of financial regulation during the period he was chairman of the Federal Reserve. This result indicates a more influential role for Greenspan in the decision-making process of financial regulation and implies a contribution of agency in the creation of financial regulation in general.