Greenspan's Real Legacyby
Before entering the Bernanke era, I want to say a word about Alan Greenspan. In my opinion, Greenspan's greatest achievement is that he showed us that central bankers didn't have to be afraid of booms and busts. He let the economy run hot in the 1990s, supercharging the innovation and tech boom. Then he acted aggressively to cut rates and cushion the bust. The jury is still out on the aftermath of the housing boom, but I believe it won't turn out bad for the economy either.
In the end, I believe that Greenspan's willingness to ride the booms and busts will turn out to be the best policy for innovation. Young startups thrive in the hothouse atmosphere of a boom, and then the busts weed out the losers.
For a longer discussion, see here