Synopses & Reviews
Winner of the 2010 Pulitzer Prize With penetrating insights for today, this vital history of the world economic collapse of the late 1920s offers unforgettable portraits of the four men whose personal and professional actions as heads of their respective central banks changed the course of the twentieth century
It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person?s or government?s control. In fact, as Liaquat Ahamed reveals, it was the decisions taken by a small number of central bankers that were the primary cause of the economic meltdown, the effects of which set the stage for World War II and reverberated for decades.
In Lords of Finance, we meet the neurotic and enigmatic Montagu Norman of the Bank of England, the xenophobic and suspicious Émile Moreau of the Banque de France, the arrogant yet brilliant Hjalmar Schacht of the Reichsbank, and Benjamin Strong of the Federal Reserve Bank of New York, whose façade of energy and drive masked a deeply wounded and overburdened man. After the First World War, these central bankers attempted to reconstruct the world of international finance. Despite their differences, they were united by a common fear?that the greatest threat to capitalism was inflation? and by a common vision that the solution was to turn back the clock and return the world to the gold standard.
For a brief period in the mid-1920s they appeared to have succeeded. The world?s currencies were stabilized and capital began flowing freely across the globe. But beneath the veneer of boom-town prosperity, cracks started to appear in the financial system. The gold standard that all had believed would provide an umbrella of stability proved to be a straitjacket, and the world economy began that terrible downward spiral known as the Great Depression.
As yet another period of economic turmoil makes headlines today, the Great Depression and the year 1929 remain the benchmark for true financial mayhem. Offering a new understanding of the global nature of financial crises, Lords of Finance is a potent reminder of the enormous impact that the decisions of central bankers can have, of their fallibility, and of the terrible human consequences that can result when they are wrong.
Review
Ahamed cannot have foreseen how timely his book would be. Unlike most works on the origins of the Great Depression,
Lords of Finance is highly readable enlivened by vivid biographical detail but soundly based on the literature. That it should appear now, as history threatens to repeat itself, compounds its appeal.
Niall Ferguson, Financial Times
Erudite, entertaining macroeconomic history of the lead-up to the Great Depression as seen through the careers of the Wests principal bankers
Spellbinding, insightful and, perhaps most important, timely.
Kirkus Reviews (starred)
Review
“In this fascinating book Liaquat Ahamed offers us the best of his talents as economist, historian, biographer and financier.
Lords of Finance is a brisk, original, incisive and entertaining account of a crucial time in the world's economic history that continues to affect us all today. Anyone who wants to understand the origins of the economic world we live in would do well to read this book.”—
Michael Beschloss, author of
Presidential Courage: Brave Leaders and How they Changed America “Here is one of those rare books—authoritative, readable and relevant—that puts the 'story' back into history. What a story it is. It stars four quirky, mysterious, and headstrong central bankers, masters of the universe in their era. Unlucky and unwise as they were powerful, they presided over a global economic debacle that led to a world war. And what a storyteller they have found in Liaquat Ahamed. He weaves a spell-binding, richly human, cinematic narrative about a pivotal episode in the last century that resonates with the headlines of today.”—Strobe Talbott, president, Brookings Institution and author of The Great Experiment: The Story of Ancient Empires, Modern States and the Quest for a Global Nation
Review
Synopsis
Winner of the 2010 Pulitzer Prize "A magisterial work...You can't help thinking about the economic crisis we're living through now." --The New York Times Book Review
It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person's or government's control. In fact, as Liaquat Ahamed reveals, it was the decisions made by a small number of central bankers that were the primary cause of that economic meltdown, the effects of which set the stage for World War II and reverberated for decades. As yet another period of economic turmoil makes headlines today, Lords of Finance is a potent reminder of the enormous impact that the decisions of central bankers can have, their fallibility, and the terrible human consequences that can result when they are wrong.
Synopsis
With penetrating insights for today, this vital history of the world economic collapse of the late 1920s offers unforgettable portraits of the four men whose personal and professional actions as heads of their respective central banks changed the course of the twentieth century It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person?s or government?s control. In fact, as Liaquat Ahamed reveals, it was the decisions taken by a small number of central bankers that were the primary cause of the economic meltdown, the effects of which set the stage for World War II and reverberated for decades.
In Lords of Finance, we meet the neurotic and enigmatic Montagu Norman of the Bank of England, the xenophobic and suspicious Émile Moreau of the Banque de France, the arrogant yet brilliant Hjalmar Schacht of the Reichsbank, and Benjamin Strong of the Federal Reserve Bank of New York, whose façade of energy and drive masked a deeply wounded and overburdened man. After the First World War, these central bankers attempted to reconstruct the world of international finance. Despite their differences, they were united by a common fear?that the greatest threat to capitalism was inflation? and by a common vision that the solution was to turn back the clock and return the world to the gold standard.
For a brief period in the mid-1920s they appeared to have succeeded. The world?s currencies were stabilized and capital began flowing freely across the globe. But beneath the veneer of boom-town prosperity, cracks started to appear in the financial system. The gold standard that all had believed would provide an umbrella of stability proved to be a straitjacket, and the world economy began that terrible downward spiral known as the Great Depression.
As yet another period of economic turmoil makes headlines today, the Great Depression and the year 1929 remain the benchmark for true financial mayhem. Offering a new understanding of the global nature of financial crises, Lords of Finance is a potent reminder of the enormous impact that the decisions of central bankers can have, of their fallibility, and of the terrible human consequences that can result when they are wrong.
Synopsis
Winner of the 2010 Pulitzer Prize andquot;A magisterial work...You can't help thinking about the economic crisis we're living through now.andquot; --The New York Times Book Review
It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person's or government's control. In fact, as Liaquat Ahamed reveals, it was the decisions made by a small number of central bankers that were the primary cause of that economic meltdown, the effects of which set the stage for World War II and reverberated for decades. As yet another period of economic turmoil makes headlines today, Lords of Finance is a potent reminder of the enormous impact that the decisions of central bankers can have, their fallibility, and the terrible human consequences that can result when they are wrong.
About the Author
Liaquat Ahamed has been a professional investment manager for 25 years. He has worked at the World Bank in Washington D.C. and the New York based partnership of Fischer Francis Trees and Watts, where he served as Chief Executive. He is currently an adviser to several hedge fund groups, including the Rock Creek Group and the Rohatyn Group, is a director of Aspen Insurance Co. and is on the board of Trustees of the Brookings Institution. He has degrees in economics from Harvard and Cambridge Universities.
Table of Contents
Lords of Finance Introduction
Part One: The Unexpected Storm
August 1914
1. Prologue
2. A Strange and Lonely Man
3. The Young Wizard
4. A Safe Pair of Hands
5. L'Inspecteur des Finances
6. Money Generals
Part Two: After The Deluge
1919-23
7. Demented Inspirations
8. Uncle Shylock
9. A Barbarous Relic
| Part Three: Sowing A New Wind
1923-28
10. A Bridge Between Chaos and Hope
11. The Dawes Opening
12. The Golden Chancellor
13. La Bataille
14. The First Squalls
15. Un Petit Coup de Whisky
Part Four: Reaping Another Whirlwind
1928-33
16. Into the Vortex
17. Purging the Rottenness
18. Magneto Trouble
19. A Loose Cannon on the Deck of the World
20. Gold Fetters
Part Five: Aftermath
1933-44
21. Gold Standard on the Booze
22. The Caravans Move on
23. Epilogue
Acknowledgments
Notes
Bibliography
Index