tbr_the_unconquered's review against another edition
3.0
The subject of economics is one which I have steered clear from in my readings. The reason behind this was that I could not find it to be one that called out to my curiosity . Reflecting on it slightly more made me understand that this could be an aftermath of my education too wherein unless you have a passion for them subjects like mathematics, economics and physics can become rather dry and soporific. Picking up this book was a conscious decision whereby I wanted to shed some of these notions and get to know the real world import of economics. The attempt was met with moderate success and my understanding of some aspects of global finance have increased but then not so much. The book is a good primer and written mostly in layman's language.
The premise of the book is the factors and circumstances that led up to the global financial recession of 2007-08, it's impact, crisis handling, aftermath and continuing echoes. Three men - Mervyn King, Ben Bernanke and Jean-Claude Trichet navigate the western financial markets through these throes by a method of trial and error and thereby mold history in the process. The first two parts of the book are about some of the factors of global import -creation of the Euro, Greece going bankrupt, the bursting of the mortgage bubble in the US , bankruptcy of the Lehman Brothers, etc and the later chapters are a series of decisions which changed the way how the global economy functions. As I mentioned at the onset, I did not understand all of the goings on here but then a 75% grasp of them was good enough for a novice like me.
Recommended !
The premise of the book is the factors and circumstances that led up to the global financial recession of 2007-08, it's impact, crisis handling, aftermath and continuing echoes. Three men - Mervyn King, Ben Bernanke and Jean-Claude Trichet navigate the western financial markets through these throes by a method of trial and error and thereby mold history in the process. The first two parts of the book are about some of the factors of global import -creation of the Euro, Greece going bankrupt, the bursting of the mortgage bubble in the US , bankruptcy of the Lehman Brothers, etc and the later chapters are a series of decisions which changed the way how the global economy functions. As I mentioned at the onset, I did not understand all of the goings on here but then a 75% grasp of them was good enough for a novice like me.
Recommended !
adithyavs's review against another edition
5.0
In this brilliant book on Central Banking, Neil Irwin makes the impact these relatively silent institutions have had on our lives. Virtually controlling the economy and money supply, a solid central bank has existed at the center of every empire that has ruled the modern world.
Though it is a book that deals with fundamentals of economics, the language makes it easily accessible to any layman. The author delves deeply into the history of Central Banking and reminds us of the impact that this has had in our lives. From the establishment of the first Central Bank in Sweden, to the crisis of Reichsbank, and through the contentious history of Central Banking in the United States, the history of Central Banking is far from a straight line.
Apart from history, the book deals with two primary crises that have shaken the modern financial system of late: The 2008 Global Recession and the Eurozone Crisis. The way the Federal Reserve and the ECB fought these crises make for an interesting read.
The book mainly focuses only on the major central banks of the world: the Fed, ECB and the Bank of England. There are sneak peaks available into the functioning of the People's Bank of China and the Japanese Central Bank as well.
Altogether the book gives a good introduction into the world of Central Banking. It might not be the ideal book for a complete layman or an academic, as both of them would find it a tone heavier and lighter respectively than desired.
Though it is a book that deals with fundamentals of economics, the language makes it easily accessible to any layman. The author delves deeply into the history of Central Banking and reminds us of the impact that this has had in our lives. From the establishment of the first Central Bank in Sweden, to the crisis of Reichsbank, and through the contentious history of Central Banking in the United States, the history of Central Banking is far from a straight line.
Apart from history, the book deals with two primary crises that have shaken the modern financial system of late: The 2008 Global Recession and the Eurozone Crisis. The way the Federal Reserve and the ECB fought these crises make for an interesting read.
The book mainly focuses only on the major central banks of the world: the Fed, ECB and the Bank of England. There are sneak peaks available into the functioning of the People's Bank of China and the Japanese Central Bank as well.
Altogether the book gives a good introduction into the world of Central Banking. It might not be the ideal book for a complete layman or an academic, as both of them would find it a tone heavier and lighter respectively than desired.
venkyloquist's review against another edition
4.0
“Uneasy is the head that wears the crown”, proclaimed the immortal Bard of Avon in his gripping play, King Henry the Fourth. What William Shalespeare left unsaid however, was that such unease is exacerbated manifold especially when one happens to ascend to the position of a Central Banker. Hurl into the already formidable conundrum a financial recession that has the potential not only to slam the brakes on world prosperity but also pull the very rugs of stability from underneath the globally interconnected economic edifice, the Crown of the Central Banker is but a coronation heralding an ensuing crucifixion!
Neil Irwin, in his spectacular work “The Alchemists” (the book) chronicles with delightful clarity the tumult and turmoil faced by three redoubtable Central Bankers when the whole world around them went rogue in a tailspin of sheer insanity. Ben Bernanke, former Chairman of the Federal Reserve in the United States, Jean Claude-Trichet, the then President of the European Central Bank (“ECB”) and the then Governor of the Bank of England Mervyn King were three reluctant firefighters who were involuntarily entrusted with the onerous responsibility of rescuing a world gone mad.
Before explaining the measures implemented by the three protagonists, Irwin dishes out an alluring hors d'oeuvres in the form of an introduction to the advent of Central Banking. From the exploits of Johan Palmstruch in Sweden to the prescience of Walter Bagehot in England, Irwin traces the evolution, endurance and etiology of the now commonly accepted and taken-for-granted lender of last resort. Coming to the core aspect of his subject, Irwin then provide a fascinating ringside view of the greatest recession since the Great Depression of 1929, that brought the world to its knees before being tackled employing means both novel and random. Irwin highlights in a staid albeit powerfully convincing manner, both the need for a strong Central banking system and its manning by a set of articulate and talented central bankers. To paraphrase Irwin, “Central bankers determine whether people can get jobs, whether their savings are secure, and, ultimately, whether their nation prospers or fails.” The individuals who were mercilessly pilloried and remorselessly vilified as forming part of the very problem which they were attempting to resolve during the panic of 2007 thus get more than just a reprieve and a pat on the back from Irwin.
The three different personalities of Bernanke, King and Trichet working in tandem as well as in individual capacities attempted to weather the financial storm by bringing their astuteness and at times even arrogance to bear. As Irwin points out, they also stumbled quite a bit in the process. While the obstinate troika of the ECB, the International Monetary Fund (“IMF”) and the European Commission (“EC”) urged on by the Bundesbank imposed ludicrous conditions of austerity on an ailing Greece in consideration of a bail-out, the Eurozone was under the threat of a potential dismantling. To a great extent the financial crisis was brought about by the lax and lackadaisical supervision of the Fed as mortgage originators went on the rampage in the United States and the greedy Wall Street Bankers cranked up their machinery that produced mind numbingly complex financial products whose worth or uselessness lent themselves to prediction of any reasonable sort.
Irwin’s marvelous book also boasts of some aesthetic touches. In recounting how a 2011 celebration, at the Alte Oper, Frankfurt’s historic opera house, to mark Trichet’s retirement, transformed into an argument among the assembled European leaders, Irwin writes, “As Trichet and Merkel and Sarkozy hammered at each other in their back room, no resolution to be found, the notes of Mendelssohn’s finale echoed through the building, the music as jolly as the outlook for Europe was looking dismal.”
Irwin also provides an insight into the extremely complex process by which the countries forming part of the Eurozone achieve unanimity in all decisions having an impact on the monetary and fiscal prospects of the Eurozone. Potential beneficiaries are rendered irrelevant as stringent demands and strident conditions are imposed upon them as considerations for a potential bail-out. The actions of Germany and France who while maintaining an uneasy relationship amongst them are also paradoxically ‘joined at the hip’ make for some rousing reading.
“The Alchemists” while not attempting to deify the central bankers as they go about their unenviable work, strives to place them on a pedestal that is exalted, edifying and certainly enervating.
Whether such a pedestal is indeed a deserving honour, is a choice that is left to the readers to decide.
Neil Irwin, in his spectacular work “The Alchemists” (the book) chronicles with delightful clarity the tumult and turmoil faced by three redoubtable Central Bankers when the whole world around them went rogue in a tailspin of sheer insanity. Ben Bernanke, former Chairman of the Federal Reserve in the United States, Jean Claude-Trichet, the then President of the European Central Bank (“ECB”) and the then Governor of the Bank of England Mervyn King were three reluctant firefighters who were involuntarily entrusted with the onerous responsibility of rescuing a world gone mad.
Before explaining the measures implemented by the three protagonists, Irwin dishes out an alluring hors d'oeuvres in the form of an introduction to the advent of Central Banking. From the exploits of Johan Palmstruch in Sweden to the prescience of Walter Bagehot in England, Irwin traces the evolution, endurance and etiology of the now commonly accepted and taken-for-granted lender of last resort. Coming to the core aspect of his subject, Irwin then provide a fascinating ringside view of the greatest recession since the Great Depression of 1929, that brought the world to its knees before being tackled employing means both novel and random. Irwin highlights in a staid albeit powerfully convincing manner, both the need for a strong Central banking system and its manning by a set of articulate and talented central bankers. To paraphrase Irwin, “Central bankers determine whether people can get jobs, whether their savings are secure, and, ultimately, whether their nation prospers or fails.” The individuals who were mercilessly pilloried and remorselessly vilified as forming part of the very problem which they were attempting to resolve during the panic of 2007 thus get more than just a reprieve and a pat on the back from Irwin.
The three different personalities of Bernanke, King and Trichet working in tandem as well as in individual capacities attempted to weather the financial storm by bringing their astuteness and at times even arrogance to bear. As Irwin points out, they also stumbled quite a bit in the process. While the obstinate troika of the ECB, the International Monetary Fund (“IMF”) and the European Commission (“EC”) urged on by the Bundesbank imposed ludicrous conditions of austerity on an ailing Greece in consideration of a bail-out, the Eurozone was under the threat of a potential dismantling. To a great extent the financial crisis was brought about by the lax and lackadaisical supervision of the Fed as mortgage originators went on the rampage in the United States and the greedy Wall Street Bankers cranked up their machinery that produced mind numbingly complex financial products whose worth or uselessness lent themselves to prediction of any reasonable sort.
Irwin’s marvelous book also boasts of some aesthetic touches. In recounting how a 2011 celebration, at the Alte Oper, Frankfurt’s historic opera house, to mark Trichet’s retirement, transformed into an argument among the assembled European leaders, Irwin writes, “As Trichet and Merkel and Sarkozy hammered at each other in their back room, no resolution to be found, the notes of Mendelssohn’s finale echoed through the building, the music as jolly as the outlook for Europe was looking dismal.”
Irwin also provides an insight into the extremely complex process by which the countries forming part of the Eurozone achieve unanimity in all decisions having an impact on the monetary and fiscal prospects of the Eurozone. Potential beneficiaries are rendered irrelevant as stringent demands and strident conditions are imposed upon them as considerations for a potential bail-out. The actions of Germany and France who while maintaining an uneasy relationship amongst them are also paradoxically ‘joined at the hip’ make for some rousing reading.
“The Alchemists” while not attempting to deify the central bankers as they go about their unenviable work, strives to place them on a pedestal that is exalted, edifying and certainly enervating.
Whether such a pedestal is indeed a deserving honour, is a choice that is left to the readers to decide.
spazk27's review against another edition
4.0
A great fact filled, objective overview of the recent financial crisis. It's not filled with opinions, but provides the tools for you to assess the US and global reactions to various facets of the events occurring from 2007-2012. I did not read the entire book word for word, as it is rather dry. I skipped around to the areas that I cared about most. I thought the author did a great job inter-relating all the various activities into one book.
katemilty's review against another edition
3.0
When I started reading this book, I knew nothing real about the Fed other than it had "bailed out Wall Street". Why did it do that? Did it really hurt the American people with it's interventions in 2008 and beyond? Why did the US crisis affect Europe? Why was everyone talking about a crisis in the Eurozone?
I can't say at the completion of listening to this audiobook that I can reasonably explain a coherent multi-sentence answer to any of the above questions. Maybe if I'd listened more closely, taken more notes.. That's not to say this book was overly academic or inaccessible. On the contrary, Irwin's writing often translated impossible central bank-speak into something comprehensible.
Whether or not it was a balanced account, I can't say. But it definitely felt like a thorough one. Would recommend for anyone trying to better understand "WTF happened in the financial crisis?"
On whether or not it is a balanced account, the NY Times suggests it is: https://www.nytimes.com/2013/05/05/business/alchemists-looks-at-central-bankers-handling-of-crisis.html
I can't say at the completion of listening to this audiobook that I can reasonably explain a coherent multi-sentence answer to any of the above questions. Maybe if I'd listened more closely, taken more notes.. That's not to say this book was overly academic or inaccessible. On the contrary, Irwin's writing often translated impossible central bank-speak into something comprehensible.
Whether or not it was a balanced account, I can't say. But it definitely felt like a thorough one. Would recommend for anyone trying to better understand "WTF happened in the financial crisis?"
On whether or not it is a balanced account, the NY Times suggests it is: https://www.nytimes.com/2013/05/05/business/alchemists-looks-at-central-bankers-handling-of-crisis.html
jgauthier's review against another edition
4.0
The amount of engineering that helped to drive us into the recent financial crisis (and subsequently pulled us out of it) is just staggering. This book reveals the role of central banking—far, far more central to the healthy functioning of a modern developed economy than you might expect—in the United States, the EU, the UK, and more.
It's fascinating to see the reflections of different national / continental theories and cultural attitudes toward finance in central banking policy, and examine how the central banks' unique perspectives of their role all clash repeatedly as these leaders of the major economies of the world are forced to cooperate in times of crisis.
It's fascinating to see the reflections of different national / continental theories and cultural attitudes toward finance in central banking policy, and examine how the central banks' unique perspectives of their role all clash repeatedly as these leaders of the major economies of the world are forced to cooperate in times of crisis.
lpleitera's review against another edition
3.0
Jumbled organization in parts 2-4, which made it difficult for me to stay engaged in the material. But worth the read for people like me who know nothing about central banking.
abhishekanirudhan's review
5.0
The book starts off with a recounting of the origins and development of central banking, and goes on to describe the financial crisis (starting in 2008) in riveting detail.
joaotjesus's review
3.0
This book offers us a journalistic tale of the 2008 financial crisis. it start with a little history of central banking, then proceeds to the creation of the financial institutions that we know today (the US Fedederal Reserve, European Central Bank, Bank of England, etc), and then starts addressing the 2008 financial crisis, mostly from the perspectives of the then leaders of said Banks.
The book is written in a journalistic style, the text is clear and light, and the author provides some well-needed explanations and metaphors for some complicated financial and economic concepts.
the author approaches most of the characters in a detached way, making no judgment calls, instead focusing on the settings of the meetings and parties that such characters attend, which helps in giving the impression that these are larger than life figures, or rather very privileged people.
The book is written in a journalistic style, the text is clear and light, and the author provides some well-needed explanations and metaphors for some complicated financial and economic concepts.
the author approaches most of the characters in a detached way, making no judgment calls, instead focusing on the settings of the meetings and parties that such characters attend, which helps in giving the impression that these are larger than life figures, or rather very privileged people.
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