The Alchemists: Three Central Bankers and a World on Fire by Neil IrwinMy rating: 4 of 5 stars
This book may be a little dated now, but it is still a great introduction to size, scope, and function of central banks and bankers. I am embarrassingly ignorant of all these things so for me it was enlightening and educational. Irwin starts with the first central bank in Sweden in the 1660s and outlines the basic history and roles of central banks in everything from the Great Depression to the inflation of the Nixon years. Most of the bank focuses on the years from 2007-2012, during the bank bailouts, Greece's struggle, and the subsequent actions to normalize the economies since. I realize how entangled all the economies in the world are, and sometimes felt like it is good and right that these technocrats can figure out what needs to happen to keep the economies at an even keel. Other times I was amazed (and a little horrified) to realize how much power these few men hold. Holding the purse strings carries a lot of power--and the wrong decisions can cause economic disaster, depressions, war. Irwin definitely sides with the bankers, his portrayal shows them making the best decision they could at the time, and entrusts that they will learn by their mistakes. He points out that despite criticism, these three men (Berneke, King, and Trichet), averted the worst pitfalls of what could have happened. Although the book ends 10 years ago, (it was published in 2013), I still feel like I learned a lot and can understand the Fed's role and the different strategies it uses.
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