During the 1950s and 1960s Greenspan was a proponent of Objectivism, writing articles for Objectivist newsletters and contributing several essays for Rand's 1966 book
Capitalism: the Unknown Ideal including an essay supporting the
gold standard.
[46][47] Rand stood beside him at his 1974 swearing-in as Chair of the
Council of Economic Advisers. Greenspan and Rand remained friends until her death in 1982.
[38] Although Greenspan was once recognized as a proponent of
laissez-faire capitalism, some Objectivists find his support for a gold standard somewhat incongruous or dubious,
[citation needed] given the Federal Reserve's role in America's
fiat money system and endogenous
inflation. He has come under criticism from
Harry Binswanger,
[48] who believes his actions while at work for the Federal Reserve and his publicly expressed opinions on other issues show abandonment of Objectivist and
free market principles. However, when questioned in relation to this, he has said that in a democratic society individuals have to make compromises with each other over conflicting ideas of how money should be handled. He said he himself had to make such compromises, because he believes that "we did extremely well" without a central bank and with a gold standard.
[49]