Reviews (4)

Negative Review Missed the Very Point of the Book
I read the reviews and found them helpful, but the unnamed reviewer that attributed the Great Depression to causes totally other than this book cites, and bashed Friedman as "not having a leg to stand on" concerned me because it seems the reviewer missed the very point of the book. Nobel prize winning economist Milton Friedman and his co-author undertook the monumental work of tracing money supply for each year for nearly a century. In doing so, they did the staggering amount of work required to show all of us something very powerful. To say they don't have a leg to stand on is disconcerting because it seems to indicate a review without a reading, or at least understanding. Obviously the Great Depression was the result of of complex interactions within the economy. What Friedman tries to do is show us the EMPIRICAL evidence for interaction between a contracting money supply and a worsening economic situation, and a steady money supply and a bettering economic situation. The Great Depression may have come about because of arrogant decisions and cascading failures, and those who decided to contract the money supply evidently were a very important trigger. I can say "evidently" because Friedman's research gives us the chance to observe the evidence for ourselves. To have advanced our knowledge of economics in a practical way, to have given useful facts for fending off depressions, is a gift. That's why this book will remain a watershed work in the history of economics.

An Excellent Partial History
Monetary History of the US served a vital purpose when it first came out, and still has much use value. For a brief period, economists ignored the importance of variations in the nominal quantity of money to business cycles. This book provided important evidence that helped correct that error. Economists used to focus on spending rather than the money supply. This book, along with subsequent work, showed that money matters.

The most important part of this book is the section on the Great Contraction. Federal Reserve policy did contract the money supply by 1/3 during the early years of the depression. The Federal Reserve did revive the depression by increasing reserve requirements in 1937. The collapse of the banking system collapsed the real economy. The recovery of the banking system was important to the recovery of industry. Money matters.

The style of this book is excellent. Considering the sophistication of its subject matter, it is highly readable. It gets into both statistics and relevant written history. It also has a helpful appendix on the determinants of the money supply.

There are some problems with this book. Money is not all that matters. Government policies that prevented wage deflation contributed greatly to the Great Depression. Of course, this book was meant to focus on monetary history alone, as the title implies. But, readers must keep the limitations of such a narrow focus in mind when considering the explanatory power of this book. Its' authors also have too little appreciation for private banking systems (Friedman latter embraced free banking). Despite its' limitations, this book is important as a empirical source for understanding how money matters to economic conditions.

The Definative work in Economics
This monumental work swept away all the now archaic notions about especially the great depression. The old rationalisms that the causes of the depression were 1) the Smoot Hawley terrif 2)over speculation in the stock market or 3)that lower interrest rates are the same as increased liquidity have been swept in to the dust bin of history repeated now only by the technically challenged.

A monetarist without a leg to stand on...
Professor Friedman argues that the Great Depression was caused by the Fed's reluctance and ultimate failure to provide sufficient liquidity to the fiancial system in order to save it from collapse. This is pure folly, as the Fed cut rates from 6.0% to 1.5% during 1929-31, during a time when the money supply did not decline until late 1930 and early 1931, while the stock market fell nearly 75%.

While some counter with the argument that Smoot-Hawley Tarrif Act of 1930 (which took effect in mid-1931) caused the Depression, nations such as Argentina, Australia, Canada, New Zealand, Portugal, the Dutch East Indies, and South Africa all began raising tariffs in 1928-29 against a backdrop of commodities price deflation and a collapse in currencies.

I am sorry, Professor Friedman, the Great Depression was caused by misinvestment, excessive credit expansion, and structural collapse in the international credit system. Sound familiar (October 1998)? ... Read more

Book Description

Featuring new credit engineering tools, Managing Bank Risk combines innovative analytic methods with traditional credit management processes. Professor Glantz provides print and electronic risk-measuring tools that ensure credits are made in accordance with bank policy and regulatory requirements, giving bankers with the data necessary for judging asset quality and value. The book's two sections, "New Approaches to Fundamental Analysis" and "Credit Administration," show readers ways to assimilate new tools, such as credit derivatives, cash flow computer modeling, distress prediction and workout, interactive risk rating models, and probabilistic default screening, with well-known controls. By following the guidelines of the Basel Committee on Banking Supervision, Managing Bank Risk offers useful models, programs, and documents essential for creating a sound credit risk environment, credit granting processes, and appropriate administrative and monitoring controls.

Key Features
* Book includes features such as:
* Chapter-concluding questions
* Case studies illustrating all major tools
* EDFT Credit Measure provided by KMV, the world's leading provide of market-based quantitative credit risk products
* Library of internet links directs readers to information on evolving credit disciplines, such as portfolio management, credit derivatives, risk rating, and financial analysis
* CD-ROM containing interactive models and a useful document collection
* Credit engineering tools covered include:
* Statistics and simulation driven forecasting
* Risk adjusted pricing
* Credit derivatives
* Ratios
* Cash flow computer modeling
* Distress prediction and workouts
* Capital allocation
* Credit exposure systems
* Computerized loan pricing
* Sustainable growth
* Interactive risk rating models
* Probabilistc default screening
* Accompanying CD includes:
* Interactive 10-point risk rating model
* Comprehensive cash flow model
* Trial version of CB Pro, a time-series forecasting program
* Stochastic net borrowed funds pricing model
* Asset based lending models, courtesy Federal Reserve Bank
* The Uniform Financial Institutions Rationg System (CAMELS)
* Two portfolio optimization software models
* a library of documents from the International Swap Dealers Association, the Basel Committee on Banking Supervision, and others ... Read more

Reviews (5)

Best book on the topic
This book trully deserves 5 stars. It is literally stuffed with very specific steps, processes and case studies. Moreover the book is easy to understand. It is very worth the money. I highly recommend this book to credit risk managers, financial analysts or to those readers who are involved in development of credit policies or procedures.

Extraordinary
Managing Bank Risk, An Introduction to Broad-Base Credit Engineering, takes on a Herculean task of capturing an extraordinarily extensive array of risk management subjects. Having spent several years in my prior career as a Corporate Banker to Fortune 500 Companies, I was familiar with some of the material within the book. However, I found that the most critical tools that I accumulated and have come to rely on have by and large been aggregated and explained clearly through both quantitative and qualitative approaches. Going beyond definitions and methodology, Managing Bank Risk lends focused perspective and context through the use of case studies. Having built various articulating sensitivity models over the course of my career, I appreciated the book's foundation of credit metrics, financial statement analysis with focus on cash flow analysis, proper asset-based lending approaches and detailed explanations of several forecasting techniques. From a pure banking perspective, Mr. Glantz commits significant time to portfolio management, hedging techniques, and understanding derivatives. Having seen only a small fraction of the statistical forecasting tools from business school that Mr. Glantz covers in the book, I found both the theory and practical software-based tools fascinating. Managing Bank Risk also evaluates and lucidly explains many corporate finance concepts and valuation tools such as Real Options and Pricing Models, which I have found important to have a controlling knowledge of in my career as an Investment Banker. Finally, but certainly not in summation, Managing Bank Risk reviews and identifies important Accounting and Corporate Structure insights and lessons that can be taken from recent corporate scandals. Given the sheer volume and quality of topics covered from the most fundamental to some of the most sophisticated, cutting-edge models available today, I would suggest this well-written and comprehensive book as a must-read for business school students or as a reference guide for finance professionals.

Incredible! Leading Resource to Understand Bank Risk
Glantz provides an astonishing and comprehensive overview of current banking practices. The book provides the necessary approaches for managing risk and uncovering discrepancies in today's environment of corporate shenanigans. The chapters on credit derivatives and pricing models are the most impressive of all writings on these subjects and are presented in a very clear and concise manner. Finally, the resources and risk rating system included on the CD is worth the price of the book alone.

BEST IN CLASS
This book is simply brilliant! Not only did I learn about new techniques for managing bank risk but found it similar to a novel that I never wanted to put down. I never take the time to write critiques but this book definitely warranted it.

Bank Risks
Managing Bank Risks is the definitive handbook on how bank risks should be managed. It presents new, leading edge techniques of risk management in a practical, user-friendly way. The accompanying CD provides underpinning for the risk manager to hone his skills. Morton Glantz has done a superb job, providing the reader with the latest risk management techniques under öne roof" ... Read more

Book Description

Praise for Collection Management Handbook

"I continue to marvel at how Collection Management Handbook: The Art of Getting Paid is still the single most valuable book in my library. Not only does this book answer every collections question possible, it is my constant source of inspiration. When I feel I need to be motivated, I only have to scan through this book. I highly recommend it, even to the most seasoned accounts receivables associates."
–Jackie Crews, MMNS A/R Manager
Medical Manager R&D
WebMD

"BRAVO! Mr. Coleman has touched upon all the important topics in an easy-to-read manual to effectively generate cash flow from dormant collection accounts. This book is an important read. I highly recommend this valuable asset to any aspiring bill collector and collection department personnel."
–Russell Sessler, President
Morgan & Curtis Associates, Inc.

"Throughout this book, Coleman offers creative solutions for today’s toughest collection problems. This is a must-read for anyone with past due receivables."
–Erica Nash, Credit & Collections Manager
Forbo Linoleum, Inc. ... Read more

Book Description

• Best techniques for extending business credit
• Proven techniques to reduce unauthorized deductions and unearned discounts
• Latest Internet, electronic, and high-tech applications
• Practical real-life strategies to improve collections

Full of valuable tips, techniques, illustrative real-world examples, exhibits, and best practices, this handy and concise paperback will help you stay up to date on the newest thinking, strategies, developments, and technologies in credit, collections, and accounts receivable.

"This book is filled with wisdom, common sense, and practical solutions. Mary Schaeffer is right on when she states that credit is part science, part art, and part gut feel. I recommend this book to anyone interested in understanding the essentials of credit, collections, and accounts receivable."
–Vaughn P. Benjamin, Vice President, Media Credit Association
Magazine Publishers of America

"Mary Schaeffer has written an excellent book for the credit and collection professional. Every credit professional should read this book and keep a copy handy in their personal library."
–Tim Paulsen, Principal of T. R. Paulsen & Associates, author of Paid in Full
International Specialist in Creative Receivables Management

"Mary Schaeffer has taken a sometimes complex subject and reduced it to an easy- to -understand guidebook. This book should be in the reference library of every credit professional."
–H. Bruce Watson, Manager, Credit Services Group, Air Products and Chemicals, Inc. ... Read more

Book Description

The book features an introduction to the structure and mechanics of repo, institutional practices and real-world examples. In addition the content includes necessary supplementary material such as bank asset and liability management, trading techniques, and a range of other applications of value in the global money markets.

Repo markets play a pivotal role in the world's economy. The Repo Handbook is the definitive, comprehensive guide to this most important element of the global debt capital markets. It describes the use, motivations and mechanics of the repo instrument, and features invaluable coverage of specific country markets and institutions. The reader is taken through classic repo, sell/buy backs and structured repo, as well as additional products such as the total return swap and securities lending. As important is the treatment of related areas, such as money markets, banking asset & liability management and the implied repo rate, vital to a full understanding of repo.

This book is the ultimate guide for bankers, repo traders and salespersons, money market participants, corporate treasurers, debt finance professionals and is organized into three parts:

Part I covers the repo instrument, and examines repo mechanics and use of repo. There is also a look at selected country repo markets around the world.

Part II of the book considers the institutional treatment of repo, with chapters on risk, netting, accounting, and legal issues. There is also a chapter on equity repo.

Part III looks at basis trading and the implied repo rate. This includes results of original research on the gilt bond basis, presented in accessible style.

* A complete guide to repo, including introductions to money markets and bonds
* Contains the author's personal anecdotes from trading
* Covers every aspect of repo for all participants including legal, tax, accounting and back office ... Read more

Reviews (15)

Very comprehensive coverage of Repo and money markets
This is a very good book on repo, money markets, and bank ALM. It is written in very accessible style and has very clear examples, descriptions, worked examples, and screen pictures. The author has also demonstrated how repo fits in with the other money markets. Highly recommended, a good guide to repo and stock lending.

Identity Crisis
It is interesting that most, if not all, of the 5-star reviews below appear to be written by the author's? aliases. For instance, the Oct. 7, Oct, 20, both Oct 22 reviews, and the Nov. 4 review all currently originate from X Moore from "John Rasheed", although in the past they've all shown London or Cape Town origin as "John Rasheed" sought to cover his tracks.

"Mr. Gagan Singh" writes several negative reviews of other books, but positive reviews of Mr. Choudhry's books. "Mr. Gagan Singh" wrote negative reviews of Ms. Stigum's "The Money Market" and alternately hails from NY, the USA, Capetown or from wherever next this chameleon chooses to hail as the reviews change.

"Matthew Bartlett" is another alias used on two book reviews of Fabozzi's "Collateralized Debt Obligations" book. One of the "Matthew Bartlett" reviews is signed "Moorad Choudhry" and praises the book with 5-stars, but the other review is unsigned and gives the book a one-star review. This is a serious identity crisis.

Great book - don't believe the negative hype
If you want to buy the best guide to repo and money markets, buy this book - forget what any US-based reviewers are saying casting ridiculous accusations about the author. The book is great - end of story. Buy it!

The ultimate guide to repo
comprehensive and well worth buying. covers all you need to know on repo and well illustrated with worked examples.

Surplus funds awaiting collection
My name is Adebayo Alotunde, I am second cousin of President of Nigeria. Please can everyone send me 10 copies of this book and I will send payment by return. ... Read more

Book Description

According to a recent issue of the Harvard Business Review, more than experience or training, it's a person's level of resilience in the face of stressful circumstances that will determine whether he succeeds or fails. Resilience at Work gives readers the courage and determination to face stressful problems instead of denying or avoiding them. Readers will learn proven techniques for:* Increasing positive attitudes like commitment, control, and challenge, while decreasing those of isolation, powerlessness, and threat* Developing patterns of support based on giving and getting assistance Luckily, resilience is not simply an ability one is born with, but a skill anyone can learn and improve. Resilience at Work gives readers the motivation and tools to work constructively and remain hardy through difficult situations, and turn stressful changes in the workplace into golden opportunities. ... Read more

Book Description

The opportunities for unmatched returns and investment protection in the brave new world of foreign currency investing are second to none. In Foreign Currency Trading, financial executives Russell Wasendorf, Sr., and Russell Wasendorf, Jr., describe foreign currency trading in plain terms, and help you understand the risks, benefits, and operational requirements that you will need to take advantage of this market’s tremendous potential. Look to Foreign Currency Trading for clear explanations on the mechanics of foreign currency trading, in-depth discussion of all pertinent foreign exchange rules and regulations, and a comprehensive glossary with literally hundreds of terms essential to forex trading. With formerly imposing currency trading restrictions having been struck down in recent court rulings, the world of foreign currency trading is an exciting and rapidly-expanding field. Let Wasendorf and Wasendorf’s Foreign Currency Trading be your comprehensive guidebook for effectively taking advantage of this exciting opportunity, not only as a source of unmatched income and profits, but also as a sophisticated hedging instrument in any investment portfolio. ... Read more

Reviews (12)

Rarely have encountered a book this useless.
As others have said clearly, this book is a waste of trees, ink and the time of its reader. The "authors" should be ashamed of such blatant hucksterism and poor description of even the most basic aspects of trading. Even if you are a neophyte, look somewhere else.

save your money ...
... I have no idea what objective these guys had in mind when they sat down to write this book.... This book is just a bunch of information thrown together (probably downloaded from the internet) and they obviously took no time to put any real effort into this book. I was terribly dissappointed with my purchase of this book.....look elsewhere if you are interested in getting started in forex trading.

Not fair
I have been trading futures and options for 11 years. I have written three books on the subject. This is the worst example of authoring that I have ever seen. There are no real insights into the subject of Foreign Currency Trading. Mr.Wasendorf fails dismally at being objective and goes overboard in promoting his company PFG. I was sorely disappointed. I was really looking forward to additional insight into Foreign Currency Trading.

A dishonest sales plug for PFG Inc., NOT a trading book
Do not waste your time and money. The "authors" (much a dignified word for the compilers of this mismatched and unfocused jumble of trivial materials) are the owners of PFG Inc., and the obvious purpose of this book is to get your business. Their main tactics are: a) The tedious description of all conceivable risks associated with broker selection, the implication being that they (PFG Inc.) are the no-risk choice. b)Four chapters grinding the theme of how risky is to do it on your own (chapter 2: "What you don't know may hurt you", chapter 4: "Buyer beware, be very aware", chapter 5: "Are you qualified to invest in Forex?" and chapter 9: "The sensitive question of risk, risk, risk ...") and one (chapter 7) where they tie it all leading you to the grand conclusion: use the services of Currency Investment Managers! (Your choice shoulod be them, of course.) Of the 241 pages, 114 pages are apendices with forms, primitive-looking graphs, and glosaries you can find in a couple minutes for free using a search engine. Voila', there you have it: nothing about trading, much about cover-selling you their services.

To be fair
I started reading this book, but after the first two chapters I returned it to the store so that I could buy a book dealing with what I wanted to know. But, to be fair, this author did write a good book on the basics of futures trading. ... Read more

Book Description

As a governor of the Federal Reserve Board from 1996 to 2002, Laurence H. Meyer helped make the economic policies that steered the United States through some of the wildest and most tumultuous times in its recent history. Now, in A Term at the Fed, Governor Meyer provides an insider's view of the Fed, the decisions that affected both the U.S. and world economies, and the challenges inherent in using monetary policy to guide the economy.

When Governor Meyer was appointed by President Clinton to serve on the Federal Reserve Board of Governors in 1996, the United States was entering one of the most prosperous periods in its history. It was the time of "irrational exuberance" and the fabled New Economy. Soon, however, the economy was tested by the Asian financial crisis, the Russian default and devaluation, the collapse of Long-Term Capital Management, the bursting of America's stock bubble, and the terrorist attacks of 9/11.

In what amounts to a definitive playbook of monetary policy, Meyer now relives the Fed's closed-door debates -- debates that questioned how monetary policy should adapt to the possibility of a New Economy, how the Fed should respond to soaring equity prices, and whether the Fed should broker the controversial private sector bailout of LTCM, among other issues. Meyer deftly weaves these issues with firsthand stories about the personalities involved, from Fed Chairman Alan Greenspan to the various staffers, governors, politicians, and reporters that populate the world of the Fed.

Since the end of his term, Meyer has continued to watch the Fed and the world economy. He believes that we are witnessing a repetition of some of the events of the remarkable 1990s -- including a further acceleration in productivity and perhaps another bull market. History does not repeat itself, yet Meyer shows us how the lessons learned yesterday may help the Fed shape policy today.

Reviews (5)

Excellent insider's account of the Fed
This is an excellent book that gives you a good insider's view on how monetary policy is crafted within the Fed. The author experienced one of the most interesting terms in the history of the Federal Reserve Bank. This is not only because of the frequent currency crisis, sovereign defaults, hedge fund bail out, stock market bubbles and crashes. These are the usual villains. But, it is the "New Economy" that became the paradigm shift in the Fed's monetary policy.

In essence, Alan Greenspan became convinced that the sustainable economic growth rate without causing undue inflation was substantially higher than it was in the past. As a result, Greenspan was comfortable lowering interest rates to record low levels, and keep them there for longer than any other Fed Chairman would have dared. Greenspan recognized that there were several factors that would keep inflation in check. These economic forces included a secular rise in U.S. labor productivity, and deflationary forces associated with globalization and the lower cost of production in China. It goes without saying that Greenspan was right one more time. Unless he undertakes a major screw up between now and then, Greenspan is likely to be remembered as the best Fed Chairman we had by the time he retires at 80 years old in 2006.

Alan Greenspan was sometimes intellectually dictatorial in his own thinking as depicted in the previous paragraph. This apparently frustrated the author somewhat who would have preferred a more collegiate, democratic, and open management style. These are good points, but they are unrealistic. The Fed Chairman has an extremely high profile. His persona is deemed to be responsible and accountable for the largest economy in the World. This economy is in turn the World's economic engine. The burden of responsibility on Greenspan is enormous and falls squarely on his shoulders alone. If he gets it wrong, he is toast. He can't in turn blame Laurence Meyer for a Fed's mistake. Alan Greenspan's successor will probably be as brilliant, and diplomatically dictatorial as Greenspan is. It is just the nature of the job.

Even though, you get that Meyer disagreed with Greenspan on their respective reading of economic indicators and policy implications, Meyer developed much intellectual and professional respect for Greenspan. The book is not at all the works of a disgruntled employee. Meyer fully recognizes he worked at the Fed during a historical transition. And, despite his occasional frustration with the job, including a lack of recognition, he most probably cherished the experience and opportunity.

Meyer comes across as having a high self-esteem, yet being egoless, with much humor. In other words, he must have been an ideal colleague to work with at the Fed. He certainly is a very good author, and has a gift for conveying complex technicalities of monetary policy in very readable and even entertaining prose.

If you enjoy books on economics and policy, I also strongly recommend "In an Uncertain World" by Robert E. Rubin, former Secretary of the Treasury under Clinton. Rubin is also probably the top candidate to replace Greenspan in 2006, if John Kerry wins the Presidential election.

Term at the Fed: Insightful & Informative
Given Meyer's background as an award-winning macroeconomic forecaster, well-credentialed academic and professor, and six-year member of the Board of Governors of the Fed, it is little surprise that this account of his term at the Fed is truly insightful in several dimensions.

Meyer does a skillful job of interpreting the flow of economic events from mid 1996 to early 2002 within the intellectual framework of mainstream economics, a "school" that includes Alan Greenspan and the influential Federal Reserve staff. That this was such an interesting period in U.S. economic history --- including the late 1990s productivity acceleration, the Asian and Russian Crises, the bursting of the equity bubble, and 9/11 --- means there are plenty of potentially confusing cross currents that must be made to fit into a single framework, and Meyer does this clearly and without resort to much jargon.

As a long-time professor of monetary economics, Meyer knew well the organization and mechanics of the Fed. What he learned from his time there and reveals in this book is the real functioning of the Fed under Greenspan, especially in its conduct of monetary policy. The chapter entitled "Come with Me to the FOMC" is an interesting and insightful blow-by-blow account of a meeting of the Federal Open Market Committee, the policy-setting body of the Fed. For the advanced student of monetary policy, the book develops the 'playbook for monetary policy' in the Greenspan era, putting in context the Fed's "risk management" approach and penchant for "gradualism."

After serving closely with Alan Greenspan for nearly six years Meyer has little but praise for Greenspan's abilities as Fed Chairman. While Meyer clearly would adopt a more open and engaged style than Greenspan if he were chairman, he came to respect the Chairman's go-it-alone, no-nonsense, style. If there is a cautionary note it is that any successor to Greenspan would need to quickly establish themselves in the eyes of the other FOMC members and adopt Greenspan's technique of "leading from the middle." It makes finding a Greenspan replacement sound like a rather daunting challenge.

Finally it is refreshing to hear the candor and humility with which the tale is told. As a former leading member of what is arguably one of the world's most powerful institutions, he could have been excused for exaggerating his own importance and tooting his own horn. Rather we get an honest description of how he and his colleagues struggled to understand the remarkable performance of the economy in the second half of the 1990s and how it responded to a series of shocks starting in early 2000. A key lesson of that period made clear by this book is that the conduct of monetary policy is far too difficult and far too important to be left to amateurs and that we need more people like Meyer to sit at the big oval table at 20th and C streets.

Insiders View of Fed
This concise book is a must read for both the casual investor and the seasoned fed watcher. Former Fed Governor Larry Meyer provides the first book length account of the "Secrets of the Temple" as experienced by an actual member of the Open Market Committee. In a jargon-free style, Meyer chronicles the intellectual ferment at the Fed as Alan Greenspan and company struggled to come to terms with the implications of the "New Economy", debated the existence of a stock market bubble and dealt with the calamity of September 11th. Neither a tell-all memoir nor a self-congratulatory tome, Meyer is scrupulously honest in admitting his own mistakes while unstinting in his praise for the wisdom of Chairman Greenspan. Nevertheless, the picture he paints, of a nearly all-powerful Chairman and staff will likely be a cause of concern for those concerned about the performance of a post-Greenspan fed. An excellent book for anyone interested in the economy or the conduct of monetary policy, "A Term at the Fed" should be required reading in all introductory macroeconomics classes.

Educational and witty account of a spectacular Fed term
Years ago, I was intrigued with the idea of "The New Economy" and wanted to educate myself on the topic. I began with Woodward's Maestro, then picked up some textbooks on Macroeconomics, all the while keeping up with the business news. Dr. Laurence Meyer, known as a "hawk," popped up in the news frequently, and caused many Wall Street types to tremble ...which I found very amusing. I also enjoyed his sense of humor, transparency and trustworthy (if not always welcome) insights which turned up in the news as well. This set me up to grab his book when it came out.

When "The New Economy" fell apart, I, like everyone else, wondered what happened and where we would go from the wreckage. I've been waiting for this book.

Humorous asides that allow one to vicariously enjoy Meyer's trip into "DC land" while studying an account of the economic history taking place during his term, make the book hard to put down. The likable Meyer reveals an endearing humility and strength of character in drawing himself not only as person who is proud of his accomplishments, but one secure enough to share his foibles and fears for the amusement of the reader. Most importantly, Meyer's experience as a professor shines as he magically makes complex economics concepts easier to understand for non experts such as myself.

If you want another tome about Greenspan, this one is not going to tell you anything earthshaking or new. But if you are interested in a educational report written by an extremely knowledgeable, intelligent, forthright, and witty man, on the workings of the Fed during an intriguing time in US economics , Meyer's book is for you.

An informative, not juicy look inside the Federal Reserve
There is no question that the Federal Reserve Board (the Fed) is the world's most powerful institution, even stronger than the United States military. The members of the board understand this power, and follow an effective code of secrecy concerning their plans. However, representatives of the board are regularly required to speak in public, even testify before Congress. Therefore, Alan Greenspan, the chairman of the Fed, has raised the art of obfuscation to a level never seen before. I have watched tapes of him testifying before Congress and have never been exactly sure what he is saying. Apparently, this trait is so ingrained in him that when he proposed marriage, his wife wasn't exactly sure what he was talking about.
Laurence H. Meyer served a term at the Fed from 1996 until the end of January, 2002. Therefore, he was there during the incredible boom of the late nineties and the economic downturn of the early years of the twenty-first century. This enormous contrast in economic performance means that the debate within the Fed, as related by Meyer, covers the entire range of positions.
In the early years, the debate was always about whether to raise rates, in order to stave off the possibility of inflation. During most of that time, Meyer and Greenspan were on opposite sides of the discussion. Greenspan took the position that the incorporation of new technology was causing a dramatic increase in productivity that was not reflected in the economic data. Meyer did not believe this until the data forced the conclusion.
The core of the argument was the value of NAIRU (Non-accelerating Inflation Rate of Unemployment), an economic statistic that is not universally accepted to say nothing of having ever been accurately measured. It is the level of unemployment considered the bound, where if the rate drops below the NAIRU, then employers are forced to increase wages in order to attract and retain workers. The end result will then be a strong inflationary pressure. It was very illuminating to read Meyer's account of the discussions inside the Fed regarding whether this "mythical" value had indeed been reached. Those discussions reveal a great deal of what actually goes on inside the Fed and how so much of their work is on the order of reading the tea leaves. While the consequences of their actions are very practical and dynamic, it also shows that the governors are sometimes forced to rely on unproven economic theories to make their decisions.
The last years of Meyer's term were spent in cutting interest rates, as the economy began to enter a deep slide. In this case, the discussions were completely different, with the theory now being based on deflationary models. Deflation is what occurred in the depression of the thirties and in Japan in the nineties. Prices begin dropping, leading to purchasing being delayed, hoping for a better price. If a feedback loop begins, it can be disastrous, considered even worse than inflation. The governors of the Fed became concerned about that possibility, and the arguments were now over how much to cut interest rates and how fast to do it.
Those who are hoping for a juicy expose of dramatic arguments or revelations about personalities will be disappointed with this book. There is very little about Alan Greenspan that was not already known and the arguments between the Fed governors are described as being quite tame. In some ways the descriptions seem too tame. Human nature and the major consequences of their actions dictate that the discussions would be carried out more passionately than Meyer describes.
I commend Meyer for his approach in writing this book. So many of the books written by former government officials are "explanations" of why they were right and so many others were wrong. They are filled with as much dirty linen as possible, without really explaining how decisions were arrived at. Meyer describes how things were done at the Fed, how it is run under Greenspan and how decisions were made. While he does criticize Greenspan, it has none of that spiteful tone that so many others use. Therefore, if you really want to know how the Fed makes the decisions that drive the world economy up or down, then this is the book to read. ... Read more

Book Description

Robert Rubin was sworn in as the seventieth U.S. Secretary of the Treasury in January 1995 in a brisk ceremony attended only by his wife and a few colleagues. As soon as the ceremony was over, he began an emergency meeting with President Bill Clinton on the financial crisis in Mexico. This was not only a harbinger of things to come during what would prove to be a rocky period in the global economy; it also captured the essence of Rubin himself--short on formality, quick to get into the nitty-gritty.

From his early years in the storied arbitrage department at Goldman Sachs to his current position as chairman of the executive committee of Citigroup, Robert Rubin has been a major figure at the center of the American financial system. He was a key player in the longest economic expansion in U.S. history. With In an Uncertain World, Rubin offers a shrewd, keen analysis of some of the most important events in recent American history and presents a clear, consistent approach to thinking about markets and dealing with the new risks of the global economy.

Rubin's fundamental philosophy is that nothing is provably certain. Probabilistic thinking has guided his career in both business and government. We see that discipline at work in meetings with President Clinton and Hillary Clinton, Chinese premier Zhu Rongji, Alan Greenspan, Lawrence Summers, Newt Gingrich, Sanford Weill, and the late Daniel Patrick Moynihan. We see Rubin apply it time and again while facing financial crises in Asia, Russia, and Brazil; the federal government shutdown; the rise and fall of the stock market; the challenges of the post-September 11 world; the ongoing struggle over fiscal policy; and many other momentous economic and political events.

With a compelling and candid voice and a sharp eye for detail, Rubin portrays the daily life of the White House-confronting matters both mighty and mundane--as astutely as he examines the challenges that lie ahead for the nation. Part political memoir, part prescriptive economic analysis, and part personal look at business problems, In an Uncertain World is a deep examination of Washington and Wall Street by a figure who for three decades has been at the center of both worlds.


From the Hardcover edition. ... Read more

Reviews (29)

Superior Washington Memoirs
This book is a thoughtful retelling of Robert Rubin's life on Wall Street and in government. The centerpiece is the account of Rubin's career in the Clinton Administration when, as director of the National Economic Council and then Secretary of the Treasury, he grappled with huge federal deficits and financial crises in Mexico and Asia. Early chapters describe his youth, Ivy League education, and career at Goldman Sachs; other chapters offer musings on subjects such as corporate governance, the financial excesses of the 1990s, global poverty, and the difficulty of educating the public on economics.

Throughout Rubin reflects on his analysis-driven, "probabilistic" approach to decision-making, which carefully weighs the upside as well as the downside of decisions taken under conditions of uncertainty. The tone of the book is low-key and balanced, and the economic discussions are clear and non-technical. Rubin's writing may not sparkle but he does have a gift for anecdotes and for wry, self-deprecating humor. He deflates faddish "new economy" gurus on Wall Street and tax-cutting theologians in the GOP without resorting to ad hominem remarks. In a strange way, his book is almost inspirational: it reminds readers that not too long ago the United States had a government that weighed evidence and considered options before taking fateful decisions.

I gave "In An Uncertain World" four stars (instead of five) because, in the last analysis, Rubin really is discreet to a fault: readers (and historians) would have benefited from a much fuller discussion of his relationship with Bill Clinton and from more details on policy differences and debates within the Clinton Administration. Maybe Rubin held his tongue because he hopes to re-enter public life in a future Democratic Administration. Or maybe he's just a classy guy.

Nice Guy Finishes First (but Doesn't Write a Great Book)
Rubin begins in media res-on the evening after he was sworn in as Treasury Secretary-with a gripping story of how the Clinton administration handled the Mexican currency crisis. His memoir has three phases: his twenty six years spent at Goldman Sachs that culminated in a co-Chairman role, his six years serving under the Clinton administration, and his return to private life as a sort of consigliere at Citigroup. Most of the book, of course, recalls the Clinton years (i.e., 1992-99, where he went from head of the National Economic Council to Treasury Secretary) and they consist largely as a series of budgetary battles, public relations trials, and averted currency crises.

Rubin likes to "tell" almost as much as he likes to "show," so the themes aren't all that hard to find. First, clearly this is a treatise on, and justification of, the importance of probabilistic decision-making in an increasingly complex, interdependent world. And with nary a number, he repeatedly demonstrates a key weakness of traditional market models: they are not able to incorporate the potentially devastating impacts of certain events which are extremely unlikely to occur, but nevertheless are possible (e.g., what if the U.S. government defaulted on its debt?).

Second, politics is yucky business. Here is where I was most fascinated. Rubin manages to paint his political life as much more difficult and challenging than any of his private sector roles. This is virtually a unanimous verdict, as I read it, stretching from the expected (e.g., government strains to serve multiple, conflicting objectives while business ultimately gets to serve only the profit master) to the counter-intuitive (e.g., he apparently had a better work-life balance at Goldman). On important questions-in this book and in his speaking-he likes to divide the issue into a "substantive" piece and a "political" piece, tackling them separately.

Third, this is a modern day Aesop's fable, specifically the one where "nice guys finish first." By finishing first I mean to say that he amassed $100+ million along the way (not in the book, but elsewhere documented) and ended up at Citigroup without direct line responsibility! But seriously, you can see why even Rubin's critics respected him. He is possessed of humility ("anyone who has done well will acknowledge the enormous role played by chance"), candor ("I had no interest in becoming polished at television appearances, nor I suspect the capability to do that"), wisdom, and unbelievably good manners. For example, he was clearly wounded by ad hominem attacks during the 1995 budget fight (in particular, Newt Gingrich has a reoccurring nemesis role, calling Rubin "untrustworthy" on television), but when it comes to personal retorts, Rubin can only manage to praise Gingrich for his understanding of the dimensions of the Mexican crisis.

Finally, experience has led Rubin to believe that it is almost impossible to help ordinary voters understand the complexities of fiscal and foreign policy. He illustrates this expertly when he reviews his role in the debate around Bush's tax cuts in 2001 and 2003, where he dishearteningly cannot find a succinct way to warn of the long-term consequences of a structural deficit in the face of politically resonant messages that attach to tax cuts and spending increasing. He does find a terrific analogy in global warming: no one person experiences current suffering, but there is a small chance that inaction will hurt everybody gravely at some future time.

I wanted to give five stars, having really looked forward to this book. But as a literary work, the book does not reach the greatness of the man. It is ironic that Rubin, who excels at self-deprecating candor, reveals so little that is particularly new or insightful considering that he ran one of the most mysterious, successful organizations (Goldman) ever created; held a catbird seat in the Clinton administration; and is uniquely qualified to opine on the lessons of the raging bull market of the 1990s. The virtue of humility, alas, often makes his achievements appear all too easily-won. His favorite management technique appears to be taking interview notes on a legal pad (it is really endearing the first couple or few times but eventually...).

Perhaps because they are especially memorable, he spends too much time introspecting on his transitions; e.g., virtually all of Chapter Eleven is about him stepping down from Treasury and figuring out where to go next. Oh the agony, but you can skip this chapter and I'll summarize: it's a lot like your last job change, but Sandy Weil is trying to sell you instead of some slimy headhunter. Also, I don't think you should buy the book for the "Rubin Doctrine." These principles are sort of like the Ten Commandments (Number 9: never let your rhetoric commit you to something you cannot deliver...translation: don't make promises you can't keep). You will recognize them, as they are important clichés. It's not so much you need to read them, as politicians need to follow them.

I was disappointed by the lengthy and expected discussion of the rise and precipitous fall of the stock market. Forget the Monica Lewinski admission, the real scandal in this book is that Rubin adds virtually nothing to the stock market discussion beyond the familiar refrain of pent up imbalances that inevitably had to unwind (to his credit, he pretty much confesses as such). He cites the usual culprits, including profitless dotcoms and myopic investors. If you are looking information which is helpful to investing, you won't find much here. But Rubin totally redeems himself in Chapter Thirteen, to my mind easily the best chapter in the book, where he expertly explains both the politics and substance of fiscal policy. This Chapter is worth the price of the book

Watch out for the Big Lie
Watch out for the Big Lie in this book -- namely, that the Bush administration tax cuts of 2001 and 2003 are responsible for the current budget deficit. The tax cut in 2001 was enacted under a perceived government surplus, while the tax cut in 2003 was driven by the faltering economy. Democrats faced with a budget surplus or a recession would have chosen to increase spending rather than cut taxes. Either way, with the internet bubble bursting and the 2001 WTC attack, the surplus would have disappeared and the deficit would have ballooned. Rubin's assertion that the tax cuts are responsible for the budget deficit is a Big Lie.

I am upset about this for two reasons. 1) Philosophically I believe in a flat tax rate -- I believe everyone (and every corporation) should pay an equal percentage share in taxes over a certain minimum income level. 2) I'm worried this misrepresentation will result in poor decisions on a macro level -- like a call for higher taxes irregardless of the economic impact. If we tighten fiscal and monetary policy prematurely during 2004-2005 (as Greenspan and Bush are now signaling), we risk a deflationary spiral. That danger is emphatically not over, despite rising oil prices, a resurgent stock market and a continuing real estate boom. Maybe I'm wrong, and we can all address the current budget deficit without regard for the possibility of over-tightening. However, I'd like to feel that irrational economic decisions driven by a Big Lie are not part of our problem.

I'm saying we all want to get the United States' fiscal house in order. In the process, lets not confuse party politics (progressive taxes vs. a flat tax) with sound economics.

90% of this autobiography is a well-written, measured story of an awesomely talented individual chalking up major accomplishments as a highly professional manager in a series of extraordinarily difficult and high-impact positions. Rubin is most likely a truly superb manager. I've never worked with or (more likely) for the guy.

Having read the book, however, I would be very upset seeing Robert Rubin follow Alan Greenspan as Governor of the Federal Reserve. He has clearly misrepresented the economic facts in this book to suit his political positions. He'd be great as a Secretary of State for a Democratic administration, or a Secretary of Treasury redux.

I give the book three stars, because Rubin is a legitimate American super star. Pity he's a Democrat.

Where finance meets politics: Rubinomics
As someone who's had the chance to walk through the storied trading floors of the arbitrage division of Goldman Sachs in Manhattan, I was excited to read this book about someone who began his amazing career there. Anyone interested in investing, domestic and international finance and economics, and politics should read this book. Why?

Mr. Rubin was vital in the formation of Clintonomics--a set of policies that stressed the importance of deficit reduction. Although politically vilified for "raising taxes," Mr. Rubin's platform of deficit reduction was associated with remarkable productivity and economic growth in the 1990's. Mr. Rubin's account is especially timely and thought provoking considering the recent deficits incurred by the U.S. government, the historically low interest rates that are nevertheless present in America, and the 12 billion dollar bet on foreigns currencies recently placed by Berkshire Hathaway.

As someone who has visited and invested (with very mixed results!) in developing countries, I was also interested in Mr. Rubin's accounts of how and why he, Clinton, and others at institutions like the IMF created multi-billion dollar rescue loans to these nations. The conflicts of interest between investors, the borrowers, and the loaners is fascinating to contemplate. It is also instructive to consider why some rescue packages (designed for Indonesia) failed while others (designed for Mexico) succeeded. While recounting these stories Mr. Rubin does an admirable job explaining why lowering tarrifs and expanding global trade with emerging markets is a win-win situation for all parties involved.

For an even better explanation of the underlying principles of international finance read "Economics in One Easy Lesson" by Hazlett. It sounds like a children's book, but the clarity of explanation of complex ideas in this book is amazing.

A Certain Success in an Uncertain World
I would recommend this book as probably the best politico-economic book I've read. Robert Rubin, as Secretary of the Treasury and head of the National Economic Council during the Clinton years, was at the center of some of the most exciting times of the last few generations: the first balanced budget in thirty years; a run-up in the stock market that made millionaires out of average people; and a thriving economy. But not everything was wonderful. The Republican Party started a revolution of their own in 1994 when they swept control of Congress for the first time in forty years and the Asian economic crisis of 1998 threatened a global economic meltdown. In the center of it all was Robert Rubin.

Educated at Harvard, Rubin became an arbitrageur at Goldman Sachs in the 1960s and rose to co-ceo of the company before leaving for Washington during the Clinton years. His theme for life was that that there are no certainties. He called his philosophy probabilistic thinking. He explained it this way: "Success came by evaluating all the information available to try to judge the odds of various outcomes and the possible gains or losses associated with each." It was a philosophy that enabled him to succeed in both public and private endeavors.

His book is highly interesting but may be a difficult read for someone without any knowledge of economics. For those familiar with economic terms and concepts the book will be both enlightening and educational. While we may live in an uncertain world this book is a certain success. ... Read more

Book Description

Controversial and exhaustively researched, gender expert Warren Farrell's latest book Why Men Earn More takes as its stunning argument the idea that bias-based unequal pay for women is largely a myth, and that women are most often paid less than men not because they are discriminated against, but because they have made lifestyle choices that affect their ability to earn.Why Men Earn More argues that while discrimination sometimes plays a part, both men and women unconsciously make trade-offs that affect how much they earn. Farrell clearly defines the 25 different workplace choices that affect women's and men's incomes -- including putting in more hours at work, taking riskier jobs or more hazardous assignments, being willing to change location, and training for technical jobs that involve less people contact -- and provides readers with specific, research-supported ways for women to earn higher pay. Why Men Earn More, with its brashness in the face of political correctness, is sure to ignite a storm of media controversy that will help to make this thoroughly pragmatic exposŽ Warren Farrell's next bestseller. ... Read more

Book Description

The decade of the 1980s left many central bankers disillusioned with monetarism, so that the question of the optimal nominal anchor remains an open one. In this second collection of his writings on financial markets (the first, On Exchange Rates, covered international finance), Jeffrey Frankel turns his attention to domestic markets, with special attention to how national monetary policy is handled. The fifteen papers are divided into three sections, each introduced by the author. They cover, respectively, optimal portfolio diversification, indicators of expected inflation, and the determination of monetary policy in the face of uncertainty.

In the first section, Frankel explores what information the theory of optimal portfolio diversification can give the macroeconomist. In the second section, he considers what economic variables central bankers might use to gauge whether monetary policy is too tight or too loose. And in the final section, he looks at the range of uncertainty over policy effects and how that complicates coordination of macroeconomic policymaking. The book concludes with a sympathetic analysis of nominal GDP targeting. ... Read more

Book Description

"This brief exposé of central banking and monetary policy. . . should be required reading for all those, specialists and nonspecialists alike, interested in those subjects." -- Manuel Guitián, Finance and Development

Alan S. Blinder offers the dual perspective of a leading academic macroeconomist who served a stint as Vice-Chairman of the Federal Reserve Board--one who practiced what he had long preached and then returned to academia to write about it. He tells central bankers how they might better incorporate academic knowledge and thinking into the conduct of monetary policy, and he tells scholars how they might reorient their research to be more attuned to reality and thus more useful to central bankers.

Based on the 1996 Lionel Robbins Lectures, this readable book deals succinctly, in a nontechnical manner, with a wide variety of issues in monetary policy. The book also includes the author's suggested solution to an age-old problem in monetary theory: what it means for monetary policy to be "neutral." ... Read more

Reviews (2)

Well Done
After having taken Macroeconomic Theory, Alan Blinder's book was extremely clear and understandable. His comments about Central Banking behavior make wonderful sense as he takes into account both academic and real world theaters. He was especially clairvoyant in his reasoning about why a Central Bank needs to establish credibility. A definite recommendation for those interested in the Federal Reserve and what they do.

Sensible
Nothing fancy, but a good testimony from a real central banker about how real central banking has been carried out in recent US history. It is much less glamorous than all the theories, models and arguments would have it. Logical, sensible and even-tempered, like a central banker. A small book easily read in an evening that brings a lot down to earth. Only four stars because nothing this reasonable deserves five. ... Read more

Book Description

Economic indicators and economic policy have an incredible impact on the volatile financial markets, yet it is often up to traders and investors to interpret the effects and take decisive action. Trading the Fundamentals explains the significance and market impact of all widely followed economic numbers, including the Consumer Price Index, Employment Report and other well-known indicators. Completely updated and revised to reflect today's highly computerized environment, Trading the Fundamentals provides readers with all the tools they need to analyze economic news and make appropriate investment decisions. New topics include: A new emphasis on data availability through the Internet; More detail on indicators such as layoffs and productivity; A completely overhauled discussion of Federal Reserve policy; A discussion of the phases of the business expansion part of the cycle. ... Read more

Reviews (2)

Why isn't this book in print?
I have several economic books, yet this book (written by economic investment professionals) is the most understandable, readable, and usable book on economics I know of. You can understand this material without knowing economics! Since it gives web site addresses for the actual data, you can view the economic results online or sign up to have the results e-mailed to you. It includes tables, so you have a comparison guide to help you figure out whether the data fits in the recession, recovery or expansion phases. As someone who came to economics through the back door (from observation of the markets), economic data does MOVE the markets......This book should be considered essential for traders or investors!

The most important book a trader will ever read
The new edition of "Trading The Fundamentals" is a book no trader should be without.

This book explains what is important about each release, how they are compiled, and how the market interprets them.

If I could choose only one book - THIS WOULD BE IT.

Kevin Cotter, The Cents Financial Journal ... Read more

Book Description

Friedman makes clear once and for all that no one is immune from monetary economics-that is, from the effects of its theory and its practices. He demonstrates through historical events the mischief that can result from misunderstanding the monetary system. Index. ... Read more

Reviews (7)

The Power of Monetary Thinking
In his best selling study, Robert L. Heilbroner calls Economists 'The worldly philosophers'. That description certainly captures what Milton Friedman does in this book - he takes the seemingly simple concept of money, the unit of exchange we use daily and rarely reflect upon, and demonstrates how complicated the issues regarding it are.

(As an interesting aside, Heilbroner's original title for his book was 'the money philosophers' - a definition that fits Friedman in this book even better then his chosen title, even if it is too narrow to account for all of economics).

More then half of this collection of essays is about the so-called 'Crime of 1873' - America's decision, following the issuance of fiat money (that is, money irredeemable in specie) during the Civil War, to peg the dollar not to both silver and gold, but to gold alone. This seemingly arcane and academic topic was a major political issue in the 1880s and 90s, climaxing with the nomination of the silver Democrat, William Jennings Bryan to the presidency of the United States in 1896.

As the Unites States, along with most other 19th century nations such as Germany and France, followed Great Britain in adopting the gold standard, the price of gold rose in terms of other resources, so prices went down. Therefore there was a severe deflation causing much unrest and discontent.

The cure to the deflation came not through political or monetary means, however, but because of an invention of a method to extract gold from low grade ore. This increased the supply of gold, lowered its prices. Hence stopping the deflation, and killing the presidential ambitions of William Jennings Bryan.

The rest of the book describes various issues, from FDR's decision to 'help silver' which helped Communism in China instead (by increasing the cost of silver, overvaluing the Chinese currency and thus hurting Chinese exports and undermining the Chinese economy), to the policy of pegging a currency to the dollar (not a good idea as it subjects the country to the whims of the world economy. The policy was a grave failure to Chile and a great success to Israel, due entirely to external changes in the value of the dollar).

The theme of the later parts of the book is undoubtedly inflation. Friedman demonstrates his claim that inflation is "always and everywhere a monetary phenomenon" (p.104). Inflation is caused by government increasing the money supply, although one time price increases may be caused by unfortunate outside events (like Arabs reduction of the exportation of oil in the early 1979s).

Although Friedman is well known as an economic right winger, there is nothing in this account that should be displeasing to anyone from the left - Friedman's case is against mismanagement, not for small or big governments. Nor is there any argument about whether government spending should go to the military, to welfare, or to any other cause. Although Friedman's book is filled with stories of the political economy, its moral is politically neutral. Indeed, Friedman clearly discusses how inflation is often used by governments because direct taxation is unpopular (p.205) - can you say "read my lips, no new taxes"?

Furthermore, the economic analysis of some reviewers in Amazon is shaky. Friedman writes "all these adjustments [the negative effects of inflation] are set in motion by changes in the rates of monetary growth and inflation. If monetary growth was high but steady... the economy would adjust to it. ... Such an inflation would do no great harm " (p.222).

Although Friedman does not like inflation, he actually makes a case for it, at least at a low single digit level. Since people are usually sellers of few things and purchasers of many, they are more aware of the increase in the price of the commodity they sell then they are of the increase of general prices, especially when those changes are low. People like to see their income go up, as they feel it is a just reward for their efforts (p. 70).

'Money Mischief' is an interesting, challenging book. Its chapters vary from the extremely technical and difficult, (notably chapter 4, a counter-factual exercise estimating the effect of continuing bimetallism after 1873), to 'pop economics' chapters which are no less enlightening and easier to read.

The book ends with a discussion of the new experiment started in the 1970s - currency which is entirely unredeemable by any kind of good. Earlier economists thought that this was impossible, and would necessarily lead to high inflation, but Friedman is optimistic - he believes that aware and well informed public and decision makers can pressure the government against unduly increasing the money supply. Thus, widespread understanding of economics is the real cure for inflation.

A great introdcution to the importance of monetary policy
I must confess of my unbounded admiration for Milton Friedman. He has contributed so much to our understanding of the effects of monetary policy and has been such a tireless advocate for freedom that I must admit I am not impartial in any way, so readers beware.

This book examines 10 different episodes in world history in which seemingly trivial policy choices towards money had profound, unexpected, and unforeseen consequences (usually very bad). They make enjoyable reading and are most educational.

The discussions are not all that technical and, to me, sparkle with wit and insight. This book can serve as a great introduction to how gold and silver money was abused, the effect that minting rights can have, how technology changes in mining precious metals caused a crisis of devaluation, what the heck bimetallism is and what the issues around it were (are), and most important, the risks of the kind of money we have (fiat money - because it is not tied explicitly to some kind of commodity and is therefore at the risk of somebody running the printing press too much). This is all great stuff. Enjoy!

There are several useful graphs and tables. Also, a reference list in the back can act as a bibliography for further reading.

Friedman¿s Case Against the Government Is Crystal Clear
Imagine a grand winning case that is laid before the Supreme Court to change the course of modern life around the world. Friedman starts at the very beginnings of money and traces its evolution in copious detail. As proceedings finally reach the summation which is the final chapter: "Monetary Policy in a Fiat World." I see the court in a unanimous wonderment over the masterful job that has been done by Friedman. Well, the court required is public opinion--- a bit more cumbersome.

In any nation at any point in modern history, inflation comes from only one source the national government, not by some physical event, war or deficit spending. He details how the cause of inflation is growing the money supply faster than the output of goods and services. In his fabulous review of money he chronicles the centuries of price stability that came to an end with the creation of paper money. This fiat money is not backed by a precious metal and it has spread becoming the only remaining currency in the world. He does not argue for the return to a precious metal standard as some have misrepresented.

He provides details in country after country of how governments hallucinate that the citizens will not blame the government. Inflation directly benefits the government at the expense of the citizens. In addition to the impact on your liquid assets, the government debt is paid back or refinanced with far less valuable inflated dollars. He shows how tax cuts only giving back the tax increases that come from bracket creep in an inflationary environment. Finally. People and the financial markets quickly learn that interest rates have to compensate for inflation plus a real above inflation.

In current times this means government ten year bond rates of six to eight percent or more. The last ten years was the most ideal time in a century to control inflation. However, inflation was still three to five percent per year. The only logical assumption is that in the next ten years inflation is more likely to be near five percent or more. The historical real return required on government bonds is viewed as about three percent hence the total yield of six to eight percent. Currently, it is slightly below the range. Home mortgages will tend to be a couple percent higher than the government bond. In the simplest terms, had the Federal Reserve controlled inflation to zero, mortgage rates would be half what they are today. Since Greenspan went into the job committed to zero inflation like no other Fed Chairman, there will be no realistic basis for trusting in any potential Federal Reserve policy to eliminate inflation. It would take many years of proof before bond markets would believe any such policy. Because of money mischief we are stuck with high interest rates for a very long time. Thanks to our Federal Government and no one else. The blame could not be more clear.

Many governments have fallen including democracies over the matter of inflation. As USA citizens learn about inflation, it follows that political views will change. One of Friedman's most valuable contributions is the mathematical proof and imperial evidence collection that a little inflation does not help reduce unemployment. It worsens employment. Specifically, while 3% inflation is a smaller crime against the people than 10% inflation, it is still a crime with no redeeming virtue. This is not a matter of theory or political philosophy. Thanks largely to Friedman, the proof is in and the public debate should draw to a close.

The crowning moment of the book is when he details the observations that fiat money as a global money system is only a few decades old and it remains to be seen if governments can be harnessed by citizens to stop inflation. Friedman causes us to appreciate that there is only one place to draw the line. That is at zero inflation. The wreckage of inflation is not just in the aggregate economy, the low income and the retired. The mismanagement of money in the case of the USA by the Federal Reserve eventually reeks havoc in the securities markets. While Friedman is the Federal Reserves most articulate and worthy critic, his goal is to strengthen the spine of the Federal Reserve by educating the public and the government. After reading this book you are likely to see the senators that rant that "only they care about the unemployed and the Federal Reserve must now and always pump up the money supply" as at best badly misinformed.

To label Friedman a conservative or a libertarian economist as some reviewers do is to suggest that you can dismiss the authors views as not mainstream and suspect. This convention has clearly crossed over from the liberal major market media of modern times. It is truly dastardly to degrade the standing of Milton Friedman. His great works should command everyone's study and one should allow your views to be challenged simply on the merits of Friedman's work. A Nobel Prize is not awarded as the result of some game. Friedman's contributions to the modern world are profound.

Interesting
As always , concise writing which make you able to understand the hardest part of monetory policy

Economic guru
Friedman, a personal hero of mine, makes it clear that not one of us is free from monetary economics, whether we know about its effects on us or not. He lays down monetary theory and its connection to inflation. He goes the extra mile and explains its effects on politics and world events. A great read. ... Read more

Book Description

The approach of this text for upper-level undergraduates is to teach monetary economics using the classical paradigm of rational agents in a market setting. By teaching from first principles, the authors aim to instruct students not only in the monetary policies and institutions that exist today in the United States but also in what policies and institutions may or should exist tomorrow and elsewhere.The text builds on a simple, clear monetary model and applies this framework consistently to a wide variety of monetary questions.The authors have added in this second edition new material on speculative attacks on currencies, social security, currency boards, central banking alternatives, the payments system, and the Lucas model of price surprises.Discussions of many topics have been extended, presentations of data greatly expanded, and new exercises added. ... Read more

Reviews (3)

Beautiful; economics as it should be written
Economists have a responsiblity to communicate as simply as possible. Too often complex mathematics are an