A Letter From the Publisher

By Robert L. Miller

President Reagan's choice of Alan Greenspan to replace Paul Volcker as chairman of the Federal Reserve Board inspired immediate interest among TIME's journalists. "It took only a short time to decide that Greenspan should be on the cover," says Economy & Business Senior Editor Charles Alexander. "He is one of the most analytical and perceptive economists around, a creative thinker brimming over with ideas. Once we'd chosen him, we immediately sent messages to both our domestic and foreign news bureaus asking that they start analyzing the move."

Greenspan's good fortune, however, created a small problem. With his new job, the Fed chairman will step down from TIME's Board of Economists, where he has served for 14 years. The task of searching for new members of the board, which is carefully chosen to represent diverse economic and political viewpoints, has become something of a regular activity during the past decade. Since the board was founded in 1969 to swap views on economic trends with TIME's editors, four members -- Greenspan, Murray Weidenbaum, Martin Feldstein and Beryl Sprinkel -- have left to serve as chairman of the Council of Economic Advisers. Jokes Alexander: "We're running out of economists to give to our country." Three other board members -- Walter Heller, Arthur Okun and Charles Schultze -- served as chairman before joining the TIME group.

Greenspan, who was President Gerald Ford's chief economic adviser from 1974 to 1977, is the first member of the TIME board to be named Federal Reserve , Board chairman. He will be remembered for his dry wit -- and one curious habit. Because of a sometimes bad back, he was occasionally prompted to stand while addressing fellow members, then to stretch out flat on his back on the meeting-room floor while others spoke. Most important, of course, Greenspan was esteemed for his sound economic judgment. "The views he shared with us were reflected in the stories we wrote about the board meetings," says Executive Editor Edward L. Jamieson. "But we also shared in many behind-the- scenes exchanges that revealed his shrewdness and energy. We'll be watching carefully for signs of both in his new job."