Alan Greenspan Economic Theory

Economic Theorist Many prominent economists have connected with society and made significant impacts to the economic scope of resourcing financial interest and embarking in independent productivity and innovation. Some major economic theorist includes Adam Smith, Karl Marx, and Milton Friedman. However, Alan Greenspan is one that in recent views made some impactful moves that changed the way the economy is seen and run. The changes made in earlier years, have affected higher education through today and the institutions need to review its financial framework in order to maintain its level of effective operation.

Theory in Detail

Alan Greenspan has been reported to be a laissez-faire economist. The point of view of being this type of

One strength is that loans became easier to get. With more accessible loans, more individuals can apply and be accepted because of the lower interested. Also, the theory assisted in avoiding shortages and inflation because the Asian crisis and a weak Europe diverted a lot of goods to

According to Yeager, Nelson, Potter, Weidman, & Zullo (2001), ‘Productivity and efficiency look at both costs, or expenditures, and at benefits, or outputs” (p. 6) towards institutional development through finances. Within the finance and higher education, productivity is what is needed to keep an institution moving forward, and economist is an influential part of helping schools be more competitive and productive.

The implications of productivity and institutional expenditures brings to mind economic patterns that question can we work better. Financial contracts and a misunderstood financial reserve should be avoided and “changes in the sources of funding for education were, in most cases, the result of the financial squeeze on public budgets” (Woodhall, 2007, p. 9). These issues suggest that institutions need to optimize financial status beyond government interventions and more towards a maintained and innovative funding source from private and public