FromancientcurrencytoAdamSmith,fromthegoldstandardtoshadowbankingandtheGreatRecession:asweepinghistoricalepicthattracesthedevelopmentandevolutionofoneofhumankind’sgreatestinventions.
Whatismoney,andhowdoesitwork?Inthistourdeforceofpolitical,culturalandeconomichistory,FelixMartinchallengesnothinglessthanourconventionalunderstandingofmoney.HedescribeshowtheWesternideaofmoneyemergedfrominteractionsbetweenMesopotamiaandancientGreeceandwasshapedoverthecenturiesbytensionsbetweensovereignsandtheemergingmiddleclasses.Heexplorestheextraordinarydiversityoftheworld’smonetarysystems,fromthePacificislandofYap,wherevaluewasoncemeasuredbyimmovablestones,tothecurrencyoftodaythatexistssolelyongloballyconnectedcomputerscreens.Martinshowsthatmoneyhasalwaysbeenadeeplypoliticalinstrument,andthatitisourfailuretorememberthisthatledtothecrisisinourfinancialsystemandsototheGreatRecession.Heconcludeswithpracticalsolutionstoourcurrentpressing,money-basedproblems.
Moneyskipsnimblyamongsuchfar-rangingtopicsasJohnLocke’sdisastrousexcursionintoeconomicpolicy,Montesquieu’sfaithinfinancetodisciplinethepowerofkings,thesocialorganizationofancientSpartaandtheSovietUnion’sill-fatedattempttoabolishmoneyandbankingaltogether.Throughout,Martinmakesvividsenseofachaoticandsometimesincoherentsystem—theeverydaycurrencythatweallshare—intheclearestandmoststimulatingterms.Thisisamagisterialworkofhistoryandeconomics,withprofoundimplicationsfortheworldtoday.