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As human society faces problems and challenges that continue to grow in volume and complexity, a plethora of financial tools have emerged, such as currencies, bonds, corporations, funds, and exchanges. The list does not stop there and, to the uninitiated, finance can seem like a black box of money, statistics, and policy. However, behind the torrent of economic jargon, finance is simply a way of doing things. It can reallocate resources and capital, diversify risk, and facilitate knowledge creation and diffusion across time and space. Understanding finance is fundamental to understanding human civilization and shouldn’t inspire confusion or fear but rather wonder and interest. So just how does finance allocate resources and solve the problems faced by human society? The book Money Changes Everything: How Finance Made Civilization Possible takes the reader on a well curated deep dive into the history and functionality of finance. The author explains finance in a way anyone can understand, giving us an insight into one of the forces that underpinned our modern world.
William N. Goetzmann is a leading American financial historian. He is the Edwin J. Beinecke Professor of Finance and Management Studies and Faculty Director of the International Center for Finance at Yale University. His father, being an archaeology and history professor at Yale, gave Goetzmann the opportunity to grow upon Yale’s campus, surrounded by the intense academic atmosphere. This inspired Goetzmann to go on to have a stunning financial career, becoming the president of both the Western and European Finance Associations as well as a research associate for the National Bureau of Economic Research. Throughout this time, he studied, in depth, the financial history of several countries. For the past twenty years he has focused on the comparison between European and Chinese financial development and innovation. He gives us an in depth summary of eastern economics in a world dominated by western financial ideology. With this book, Goetzmann invites us to consider the unique and powerful insights found in the east and how they may affect modern economic policy.