Making of Modern Economics

Review From User :

I very much enjoyed this book. I was never an economics fan in college or graduate school and found it to be quite dull, boring and unmemorable. However, after reading Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America, I wanted to know more about the subject. I started reading Wealth of Nations, and then I discovered this book with a good history of economics and economics theories.

I cannot comment on whether the author is right, wrong, or indifferent on 99.9% of the book. Its really my first deep dive into the subject and I appreciated the ability to get a concise overview of the topic.

I can comment on page 465 that the financial crisis of 2008 explanation is limited. The author fails to look at a simple fact that for thousands of years, banker made loans with the understanding that the borrower had to pad the loan back. The risk to the bank was the borrower would not. However, we created an environment where the bank did not care if the borrower could pay it back because they packaged it up and sold it transferring all risk and allowing all fees and profit. This lack of "skin in the game" and desire to apply prudent risk management to loans would have effected the economy no matter what.

Media Size : 6.7 MB