Paul Volcker: The Making of a Financial Legend

259 Pages·2004·1.98 MB·English

by  Joseph B. Treaster

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PAUL
VOLCKER
THE MAKING OF A
FINANCIAL LEGEND
JOSEPH B. TREASTER
John Wiley & Sons, Inc.
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Additional Praise for Paul Volcker:
The Making of a Financial Legend
“As Joseph Treaster’s quite wonderful biography makes clear, Paul
Volcker is a rare gift to the nation. Read this book and be reminded
anew of the extraordinary integrity and intellectual firepower Volcker
has made synonymous with his service to the Republic. You may not
think you care about the role of the Federal Reserve, but after you
readPaul Volcker: The Making of a Financial Legend, you will.’’
—Hodding Carter III,
State Department Spokesman
in the Carter Administration
and currently President of the John S.
and James L. Knight Foundation
“I remember well when Paul Volcker became chairman of the Fed
and vowed to break inflation. Not many believed him, but he did it,
almost single-handedly. The story of this great financial strategist
will help you understand today’s economy and what lies ahead.”
—Jim Rogers, international investor
and author of the bestselling books,
Adventure Capitalist
andInvestment Biker
“Through five decades of competence and integrity in both the pub-
lic and private sectors, Paul Volcker has gained the respect of the
world’s financial leaders while never forgetting those in America
who needed a helping hand. He has been the voice of calm in times
of financial crisis and of innovation in times of opportunity. Above
all he has been candid in a world where candor often takes second
place to public relations and spin. Treaster’s compelling book about
an extraordinary American is long overdue.’’
—Former Senator Bill Bradley
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PAUL
VOLCKER
THE MAKING OF A
FINANCIAL LEGEND
JOSEPH B. TREASTER
John Wiley & Sons, Inc.
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Copyright © 2004 by Joseph B. Treaster. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Library of Congress Cataloging-in-Publication Data:
Treaster, Joseph B.
Paul Volcker : the making of a financial legend / Joseph B. Treaster.
p. cm.
Includes bibliographical references and index.
ISBN 0-471-42812-4 (cloth)
1. Volcker, Paul A. 2. Economists—United States—Biography. 3. Board of Governors
of the Federal Reserve System (U.S.)—Officials and employees—Biography. 4. United
States—Economic policy—1971–1981. 5. United States—Economic policy—1981–1993.
I. Title.
HB119.V6T74 2004
332.1'1'092—dc22
2004000250
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To Barbara and Chloe,
my true loves
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Contents
Foreword ix
CHAPTER 1 A Finance Legend 1
CHAPTER 2 Seventy-Six 11
CHAPTER 3 The Power of the Fed 29
CHAPTER 4 Chairman 47
CHAPTER 5 Youth 71
CHAPTER 6 School Days 95
CHAPTER 7 Hardship 113
CHAPTER 8 Difficult Choices 139
CHAPTER 9 The Fallout 165
CHAPTER 10 Fly-Fishing 185
Epilogue 201
Bibliography 207
Notes 211
Acknowledgments 237
Index 239
vii