Books like Economy of Words — picked by fans

We often think of national identity as fixed: one is either Canadian or American, British or Chinese, Australian or Indian. 

The Olympic games come along and people pick up a flag to which they apparently belong. In contrast, Ong shows how economic globalization—the integration of production systems, financial activities, and labour markets across national borders—has created a situation in which national belonging is far from fixed and is instead flexible.

She documents, on the one hand, how individuals strategically obtain citizenship from more than one country and use citizenship for goals both personal and economic. On the other hand, she also documents how nation-states are using flexible definitions of citizenship to foster their own ambitions for economic growth.  

Money is often thought of as a valuable thing, like gold or silver. 

This leads us to presume that it must be finite in quality due to its scarcity. Drawing on anthropological studies of objects such as Yap stones, massive stone disks found on a far-flung island in the Pacific Ocean.

Martin shows instead that money is not so much a thing but an abstract system for tracking who has what and who is entitled to what, similar to what the anthropologist Keith Hart has called a “memory bank.” By rethinking money along these lines, we might be able to rethink how we decide who gets what and who doesn’t get what in our communities.

We often think that unemployed people are lazy or lack ambition. 

Ferguson shows how in certain parts of the world the problem is not indolence but the fact that there are simply not enough jobs for all those who need employment or would like to work. With the acceleration of automation, offshoring, and artificial intelligence this situation could become far worse and ultimately create a great deal of social and political instability. 

Ferguson documents how a number of states around the world have adopted universal basic income programs, in which poor people are provided funds by the government with no work requirements or other strings attached. The book shows how changing our thinking about the morality attached to work might actually create more stable societies.

China is often represented as very different from North Atlantic countries, such as the US or the UK. 

Some have argued that China’s phenomenal economic growth over the past three decades has often been attributed to its distinctive economic and labour practices. Kimberly Chong shows how instead Chinese corporations have made extensive use of techniques introduced by Western management consultants, firms like KPMG, Booz, Allen & Hamilton, Inc., or McKinsey & Company. 

In so doing, she shows how local workplace norms and China’s national project of modernization have been reformed by management consulting firms. She also reveals some of the critical but unrecognized techniques that have enabled the remaking of society, such as the iPhone revolution. 

Empire, Incorporated makes it clear that corporations mattered in shaping the British Empire. But how did they actually operate?

Virtuous Bankers offers a window into an ordinary workday at the Bank of England, one of the most important institutions in eighteenth-century England. In the process, the book provides new insights into the nature of public credit and the growth of the British state, as well as an engrossing introduction to everyday life in Georgian London. 

This book tells the story of the global expansion of the dollar system after the collapse of Bretton Woods from the perspective of the BIS, the global central bank.

Created in 1930, as a last-ditch effort to backstop the sterling system (among other reasons), the story of the BIS runs parallel to the story I tell in my book. This morning in class I asked my students, most of them international relations majors, if any of their other courses had mentioned the BIS, and not a single hand went up. Hence this recommendation!

Kindleberger worked at the BIS 1939-1940 and might well have made it his permanent home had not World War II intervened, and sent him back home to the Fed.  

This book not only offers an authoritative account of what the Federal Reserve has been up to since its founding in 1913 but also the rationale for why they did what they did. 

One particularly telling observation is made with respect to Arthur Burns, who was the Federal Reserve Chair during 1970-1978: “Burns always attributed [inflation] to nonmonetary sources.” Paul Volcker’s actions during 1979-1987 demonstrated how the restoration of monetary stability was a sine quo non for ending the 1970s inflationary spiral. No matter how necessary the Federal Reserve’s later massive 2020 monetary expansion may have been, it was imperative that this bulge in money also be unwound. 

A worrying element, however, is that, in the midst of all this, none of today’s Federal Reserve policymakers “ever mentions money.”

I deeply appreciate this book because it offers a firsthand account of the 2008 financial crisis from someone who was at the heart of it. Understanding the actions of central banks is fundamental for Forex trading, and Bernanke’s insights provide a clear view of how monetary policy decisions shape currency movements.

What makes this book invaluable is how Bernanke explains the rationale behind key interventions, including interest rate cuts and quantitative easing, and their impact on the global economy. His perspective helped me refine my approach to analyzing central bank policies and their influence on Forex markets.

I like this book especially due to its ability to illustrate money illusion in a very unconventional context.

Normally, money illusion means that people take nominal variables as proxy for real variables, which leads to suboptimal choice having real effects on the economy and affecting business cycle.

However, to my great surprise this book claims that even economic experts might suffer from some kind of money illusion, because they tend to misinterpret what is happening in the monetary system. This offers a very interesting explanation of recession and suggests that economists have not targeted adequate variables.

Unconventional suggestion to practice nominal GDP (gross domestic product) targeting instead of targeting the money supply is “outcome” of unique author´s vision called market monetarism. Inattention of policymakers to development of nominal GDP is blamed to be the direct cause of recession. 

This choice is obvious and tough.

The book is notoriously difficult. However, it ranks with Darwin’s Origins of the Species, and Einstein’s General Theory of Relativity as among the most important and revolutionary books ever.

It’s no exaggeration to say that Keynes changed everything in the same way that Darwin and Einstein had. It will change the way you see the world if you make the substantial effort. Keynes argues that it is the organization of our economy around money that causes unemployment—not high wages or lazy workers.

Here’s my one sentence summary: firms only hire the number of workers they need to produce the output they expect to sell at a profit. If they cannot make money from hiring you, you are unemployed.