First published 2009
Liaquat Ahamed examines how four central bankers triggered the Great Depression through their monetary decisions in the 1920s. The book focuses on Montagu Norman of the Bank of England, Émile Moreau of the Banque de France, Hjalmar Schacht of the Reichsbank, and Benjamin Strong of the Federal Reserve Bank of New York. After World War I, these men shared a fear of inflation and believed returning to the gold standard would stabilize the global economy. Their efforts initially succeeded in the mid-1920s, creating currency stability and free capital flow. However, the gold standard became a constraint rather than a solution, leading to the economic collapse that began in 1929. Ahamed argues against the common belief that the Depression resulted from uncontrollable forces, instead demonstrating how specific decisions by these central bankers caused the meltdown. The book reveals the global nature of financial crises and shows how central banker decisions can have enormous consequences for ordinary people.
Genres: history, 20th-century, economics, non-fiction, finance, academic
Vibes: analytical, informative, thought-provoking
Tropes: historical-non-fiction
Setting: Bank of England, Banque de France, Federal Reserve Bank of New York, Reichsbank
Period: 1920s, Great Depression
564 pages · Hardcover · Penguin Press