The Ascent of Money

“Worth a read?” is not your ordinary book review; it is a meta-review. In other words, it provides an overview of the opinions contained in a variety of book reviews published in the media at large. This week, we take a look at The Ascent of Money: A Financial History of the World, written by Niall Ferguson and published in June 2009.

What is it all about?

Even the ill-informed know that bonds, bank lending and financial mismanagement lie at the root of the current global recession. However, what is less evident is that money has been a determining factor in most events worldwide ever since the notion first surfaced of exchanging a token for a product or service.

As such, the history of the ascent of humankind is as much the story of the ascent of money – and hence the title of Niall Ferguson’s latest book.

The Ascent of Money traces the history of money from the Incas through to the current recession, showing how money is the foundation of all human progress and the lifeblood of history.

The Italian Renaissance was made possible by a huge cash injection, and the French Revolution was sparked by a stock market bubble. Imperial Spain faded into insignificance due to its unsophisticated banking system, while the Dutch republic bloomed as a result of introducing the world’s first modern bond market.

When Ferguson reaches the 21st century, he explains how the global financial architecture has become ever more complex, and how America’s debt to China has changed the way money flows in the world. Throughout, Ferguson points out that money is not impersonal; rather, financial markets are mirrors of humankind, reflecting our values, weaknesses and psychoses. As such, booms and busts are products of our emotional volatility.

Who is the author?

Niall Ferguson is a British historian who specialises in financial and economic history, and in the history of colonialism. He divides his time between a professorship at Harvard and a fellowship at Oxford.

He is a contributing editor for the Financial Times and a regular contributor to Newsweek.

In 2004 he was named one of the world’s 100 most influential people by TIME magazine.

What do others say?

Reviews of The Ascent of Money have been mixed. Although most critics praise his capacity to explain complex financial concepts to the layperson, Ferguson has received much negative publicity regarding the 'television script' format of his latest book.

Three of his previous books accompanied (or were accompanied by) a television series, and the result is that The Ascent of Money has an uneven and choppy structure at times.

Critics have further pointed out that the book is particularly positive when it comes to modern capitalism and international organs of financial, allowing little criticism in this regard.

However, at the very least, The Ascent of Money will leave you with the message that economic ups and downs are part of the natural order of things. Perhaps you will be able to take comfort in this the next time your bank account shows a zero sum.

Guardian.co.uk: "Instead of an inquiring history, what we are left with is a reverential panorama of neoliberal capitalism. Above all, there is little investigation of the losers in the zero-sum game of money’s ascent."

Bookmarks Magazine: "Though perhaps best suited to readers with a fundamental understanding of financial terms and theories, Ferguson’s latest work provides valuable insight into the inner workings of the global economy, past and present."

The Washington Post: "The pleasure of reading Ferguson’s treatment comes partly from the clarity of his explanations of financial concepts, but mostly from his pen portraits of the extravagantly gifted and flawed characters who have led money’s long rise."

How do I get hold of it?

The Ascent of Money: A Financial History of the World is published in South Africa by Penguin Books. It is available at Exclusive Books at a price of approximately R170.00.