GORDON BROWN began assembling yesterday what may become his prime ministerial back-up team by appointing Alan Greenspan, the man he has called the greatest economist of his generation, as an adviser.
Dr Greenspan, who retired as chairman of the US Federal Reserve on Tuesday, agreed to become an honorary adviser to the Treasury. He will offer Mr Brown advice on global economic change.
Although much of their discussion will be on the telephone they will continue, as now, to meet each other regularly on their trips to each other’s capitals.
It was also being suggested by friends of the Chancellor, however, that Dr Greenspan, 79, would almost certainly be asked to continue advising Mr Brown should be take over from Tony Blair as Prime Minister.
Only days ago, Mr Brown described Dr Greenspan as “not only one of the world’s most outstanding economic policymakers, but the greatest economist of his generation”.
Dr Greenspan, who will not be paid by the Government, has also set up a new consulting firm, Greenspan Associates. Mr Brown described the appointment as “good news for us”.
Dr Greenspan was awarded an honorary knighthood in 2002. He has previously described Mr Brown as being “without peer amongst the world’s economic policymakers”.
On Tuesday Mr Greenspan presided over his last meeting of the US Federal Reserve, which raised interest rates for the fourteenth time in a row.
Ben Bernanke, Dr Greenspan’s successor, was sworn in yesterday as the Fed’s fourteenth chairman. Many economists are betting that he will increase rates one more time at his first meeting on March 28.
During his time at the helm Mr Greenspan guided the US responses to the stock market crash of 1987, the emerging market crisis of the 1990s, the dot.com bubble of 2000 and the 9/11 attacks. He will be the only honorary adviser at the Treasury.
Mr Brown said that he was delighted with Dr Greenspan’s decision and added that his help would be much appreciated. “Dr Greenspan has declined any direct remuneration,” the Treasury said.
Last week, the Treasury announced a series of global economic forums with world business leaders, on which Dr Greenspan is expected to advise Mr Brown.
The pair have enjoyed a strong professional relationship over a number of years, and in December Dr Greenspan said that his British counterpart had achieved an exemplary record.
