Changes in Alan Greenspan’s Language Use Across the Economic Cycle: A Text Analysis of His Testimonies and Speeches

This study examined changes in Alan Greenspan’s language use across the economic cycle by analyzing his testimonies and speeches using the Linguistic Inquiry and Word Count Program (LIWC), which is a widely used text analysis program. Consistent with expectations, Greenspan showed an increase in the composite measure of psychological distancing as well as a decline in the measure of cognitive complexity between the economic expansion and downturn periods. Interestingly, these patterns of changes became more pronounced during the purported economic recovery period. In contrast to the measures of psychological distancing and cognitive complexity, the measure of emotionality remained relatively stable across the economic cycle.