Title: Lords of Finance: The Bankers Who Broke the World
Author: Liaquat Ahamed
First published January 1, 2009
564 pages, Hardcover
ISBN: 9781594201820 (ISBN10: 159420182X)
Rating: 4.01
Overview
In “Lords of Finance: The Bankers Who Broke the World,” Liaquat Ahamed delivers a captivating account of the individuals whose actions ultimately led to the great economic collapse of the late 1920s. The four men, Montagu Norman, Émile Moreau, Hjalmar Schacht, and Benjamin Strong, were each the head of their respective central banks and their decisions had a profound impact on the course of the 20th century.
Ahamed reveals that the primary cause of the Great Depression was not a confluence of events but the choices made by a small group of central bankers. Despite their efforts to reconstruct international finance in the aftermath of World War I, their common fear of inflation and shared vision to return the world to the gold standard ultimately proved disastrous.
As we face another period of economic uncertainty, “Lords of Finance” is a timely reminder of the power of central bankers and the dire consequences of their mistakes.
About the Author
For a quarter of a century, Liaquat Ahamed has been an investment manager. Along the way, he has held positions at esteemed institutions, including the World Bank in Washington, D.C. and Fischer Francis Trees and Watts in New York, where he acted as Chief Executive.
Currently, Ahamed advises various hedge fund collectives, such as the Rock Creek Group and the Rohatyn Group, as well as serving as a director for Aspen Insurance Co. Additionally, he sits on the board of Trustees for the Brookings Institution, a non-profit public policy organization.
Ahamed’s educational background is impressive, boasting degrees in economics from both Harvard and Cambridge Universities.
Editoral Review
Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed is a compelling work of nonfiction that explores the economic turmoil of the early 20th century. Ahamed, a former investment banker and economist, brings his expertise to bear in this meticulously researched and engagingly written book.
The book begins with a description of the post-World War I world, which was marked by rampant inflation, high unemployment, and political instability. Ahamed then introduces us to the four central bankers who would play a key role in shaping the fate of the global economy: Benjamin Strong of the U.S., Montagu Norman of the U.K., Hjalmar Schacht of Germany, and Emile Moreau of France.
Ahamed skillfully highlights the differences in their personalities, backgrounds, and economic ideologies, which set the stage for the complex and sometimes adversarial relationships among them. Throughout the book, Ahamed expertly weaves together economic theory, political history, and personal narratives to create a vivid and accessible account of the events leading up to the Great Depression.
He also sheds light on the role of private banking institutions in shaping the global economy and reveals the detrimental effects of their actions. One of the book’s greatest strengths is its focus on character development, with each central banker presented as a fully realized human being, complete with flaws, quirks, and motivations.
Ahamed’s prose is clear and engaging, making it easy to follow the intricacies of economic theory and policy debates. The book’s pacing is also strong, with tension building steadily as the economies of the world begin to collapse, leading to the eventual stock market crash of 1929.
Ahamed skillfully uses historical detail to create a palpable sense of drama and urgency, and the book reads like a gripping novel rather than a dry history textbook. One potential weakness of the book is that it can be dense and technical at times, which may discourage casual readers or those without a strong background in economics.
Additionally, Ahamed’s focus on the central bankers may sometimes neglect the impact of larger economic and political forces, such as the rise of fascism in Europe leading up to World War II. Overall, Lords of Finance is an impressive work of historical nonfiction that is both informative and engaging.
It provides important context for understanding the economic challenges facing the world today and is recommended to anyone interested in the history of finance, economics, or politics. Rating: 4.5/5
Criteria for rating: Writing quality, character development, pacing, historical accuracy, relevance to current events.
