Has the euro been wrongfully scapegoated for the eurozone’s economic crisis? In his new book, Europe’s Orphan: The Future of the Euro and the Politics of Debt, leading economist Martin Sandbu says that it has, arguing that the problems lie not with the euro itself, but with decisions made by policymakers. Sandbu was recently interviewed by Martin Wolf, Financial Times chief economics commentator. You can watch the video here:
Fragile by Design, The Limits of Partnership, and others among Bloomberg Businessweek’s favorite books of 2014
It’s nearing the end of the year and that means everyone is taking a look back at the best and worst of the past twelve months. Bloomberg Businessweek recently published a “Best Books of ’14,” list to their site, and five Princeton University Press titles were selected as some of the best of the year!
Mervyn King, former governor of the Bank of England, got things going; “Charles Calomiris and Stephen Haber’s Fragile by Design is a magnificent study of the economics and politics of banking.”
Bjorn Wahlroos, Chairman of Nordea Bank AB (NDA), selected Edmund S. Phelps’s Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change and wrote, “[Phelps] redraws many political front lines and provides us with an answer to those who believe more public funding for investment and innovation is the road forward for our stagnant economies. It is a marvelous book that deserves to be read by everyone, but particularly by those entrusted with the design of the European future.”
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond selected both Fragile by Design: The Political Origins of Banking Crises and Scarce Credit by Calomiris and Haber and Human Capitalism: How Economic Growth has Made Us Smarter–and More Unequal by Brink Lindsey as his must reads of the year.
“[Fragile by Design is] hands down the best single book for understanding the historical journey that laid the groundwork for the financial crisis.”
“[Lindsey] argues the case that economic inequality is more deeply intertwined with human capital accumulation and the process of economic growth than you thought.”
Dan Fuss, vice chairman of Loomis Sayles & Co., named The Limits of Partnership: U.S.-Russian Relations in the Twenty-First Century by Angela E. Stent as his choice for favorite book of 2014, while Satyajit Das, author of Traders, Guns, and Money selected The Transformation of the World: A Global History of the Nineteenth Century by Jürgen Osterhammel to round out the list of PUP titles. “Professor Jorgen Osterhammel’s fine book is anything but a linear recitation of events. Instead, it swoops, shimmies, and carves ellipses and spirals through the facts to give readers a remarkable picture of the 19th century, which has shaped much of the present world.”
Congratulations to all the PUP authors on the list! The rest of the article can be found, here.
Hello again, folks! It’s time for another installment of Throwback Thursday! On this week’s #TBT, we’ll be discussing The New Deal for Artists by Richard D. McKinzie.
As for the rest of America, the Great Depression proved to be a trying time for America’s artists. Great innovators like Willem de Koonig, Arshille Gorky, Jackson Pollock, and Adolf Gottlieb found themselves producing rather conventional work under the patronage of the Roosevelt administration, struggling to maintain their integrity and stay afloat financially. This book traces the struggles, triumphs, and setbacks of America’s Depression-era artists under New Deal policies as they navigated through the worst economic turmoil the country has ever faced.
We hope you’ve enjoyed this edition of #TBT! Don’t forget to check out next week’s installment!
Butting Heads (and iPhones): Economists Robert Gordon and Joel Mokyr Duke it Out in the Wall Street Journal
In this past weekend’s edition of The Wall Street Journal, the two voice some distinctly adverse ideas about technological innovation in the twenty-first century – on the one hand, its success, and on the other, its stagnation.
Professor Mokyr, author of The Gifts of Athena: Historical Origins of the Knowledge Economy and co-author of The Invention of Enterprise: Entrepreneurship from Ancient Mesopotamia to Modern Times is an economic historian who’s altogether positive about the economic direction of the world-at-large. But this isn’t just blind optimism; in fact, it’s due in large part to the rapid rate of technological innovation. Mokyr notes that “new tools have led to economic breakthroughs,” and that since the field of technology is vast and unremitting, we’re hardly in danger of economic collapse.
“The divergent views are more than academic. For many Americans, the recession left behind the scars of lost jobs, lower wages and depressed home prices. The question is whether tough times are here for good. The answer depends on who you ask.”
But Professor Gordon, a macroeconomist and author of the forthcoming book Beyond the Rainbow: The American Standard of Living Since the Civil War (Princeton), and of the best-selling textbook, Macroeconomics, is hugely skeptical of such theories. He asks us to compare useful and revolutionary objects, like the flushing toilet, to the newest iPad; the former, already invented, is indispensable. Everything created thereafter is simply excess – the cherry on top, if you will. And, as new developments become only incrementally more advanced than their predecessors, technological progress will slowly grind to an anticlimactic halt.
The op-ed also gives some interesting background on both Gordon and Mokyr and tries to posit the origins of their respective beliefs, whether positive or negative. Despite their conflicts, the two can concede to one point: that the twenty-first century is unarguably the best time to be born, and the revelation is certainly an encouraging one.
Quick Questions for Ignacio Palacios-Huerta, author of Beautiful Game Theory: How Soccer Can Help Economics
Ignacio Palacios-Huerta is professor of management, economics, and strategy at the London School of Economics and Political Science. He received a B.Sc. in Economics from the University of the Basque Country in Bilbao, Spain, and an M.A. in Economics from the University of Chicago, where he also completed his Ph.D. in Economics. Palacios-Huerta is also the Head of Talent Identification at the Athletic Club de Bilbao and is a Senior Fellow at the Ikerbasque-Basque Foundation for Science at UPV/EVU.
Dr. Palacios-Huerta is a contributing editor of In 100 Years (MIT), an engaging text that draws on the expertise and imagination of ten prominent economists to “present their ideas about the world of the twenty-second century,” considering topics like “the transformation of work and wages, the continuing increase in inequality, and the economic rise of China and India,” among others. He continues to produce scholarship on economic theory and has several articles, like “Consumer Inertia, Choice Dependence and Learning from Experience in a Repeated Decision Problem” (Review of Economics and Statistics), up for publication in 2014.
Now, on to the questions!
PUP: What do you think is the book’s most important contribution?
Ignacio Palacios-Huerta: In recent decades, economics has extended across many fields and areas previously considered to belong to sociology, political science, psychology, and several other sciences. What distinguishes this book is that its basic idea is just the opposite: it is not what economics can do for area or field X, but what X can do for economics. And so it takes exactly the opposite route. In the book X is, of course, soccer. And the idea is to attempt to obtain and present novel insights into human behavior using data and settings from soccer. This is what distinguishes this book from other economics books and from other books on the study of sports, and I think it is its most important contribution. After all, if the economic approach is applicable to all human behavior, then any type of data about human activity is useful to evaluate economic theories.
What is the biggest misunderstanding that people have about what you do? (I.e., is it anthropology? Economics? etc.)
I think this picture (taken from N. Gregory Mankiw’s blog) captures quite well a number of misunderstandings:
What are you reading right now?
A novel by Ramiro Pinilla, Aquella Edad Inolvidable, a biography of British graffiti artist Banksy by Will Ellsworth-Jones, and Seven Deadly Sins: My Pursuit of Lance Armstrong by David Walsh.
What was the most influential book you’ve read?
I would say, for different reasons, these three books are tied in first place:
Describe your writing process. How long did it take you to finish your book? Where do you write?
The actual writing took me around 4-5 months, but I was thinking about it for a long time, probably around 3-4 years, collecting data, developing experiments, running the different empirical tests, and reading and keeping relevant stories and anecdotes in my mind to make the book as engaging as possible.
What was the biggest challenge involved with bringing this book to life?
Lack of time: time to think, and time to work and write.
“The idea is to attempt to obtain and present novel insights into human behavior and data settings from soccer. […] I am interested in pushing the economic approach to human behavior.”
Why did you write this book?
Two reasons. First, as indicated in the first question, there is a clear aspect that distinguishes this book from other economics books and from other books on the study of sports. To the best of my knowledge this is the first book that takes this novel approach, and so I felt that, from this perspective, there was a genuine chance to present a unique contribution. Second, I am interested in pushing the economic approach to human behavior. And so, if any type of data about human activity is useful to evaluate economic theories, what could possibly be most appealing to a wide audience than data from sports, and in particular data from the world’s most popular sport?
Who do you see as the audience for this book?
Anyone interested in economics, anyone interested in sports, and anyone who thinks that he or she might perhaps become interested in economics and/or in sports, especially if he or she has a curious or scientific mind.
How did you come up with the title or jacket?
The title was a suggestion by the initial editor of the book at Princeton University Press, Richard Baggaley, and by my colleague at the London School of Economics, David De Meza. They both, independently of each other, had the same suggestion. And as soon as they suggested this title, I thought it was great. I really liked it and instinctively knew that it would be the title of the book.
With respect to the jacket, it was a suggestion by an excellent designer at Princeton University Press. I suggested some ideas, and one of them was distantly related to the one in the final jacket since it contained a “bicycle kick.” But the jacket is more striking and spectacular than anything I could have come up with. I really like it.
Ignacio is the author of:
|Beautiful Game Theory: How Soccer Can Help Economics by Ignacio Palacios-Huerta
Hardcover | 2014 | $35.00 / £24.95 | ISBN: 9780691144023
224 pp. | 6 x 9 | 30 line illus.| eBook | ISBN: 9781400850310 |Reviews Table of Contents Introduction[PDF]
New book trailer for Eswar Prasad’s THE DOLLAR TRAP: How the U.S. Dollar Tightened Its Grip on Global Finance
This just in:
Check out the new book trailer for the eagerly-awaited new book THE DOLLAR TRAP: How the U.S. Dollar Tightened Its Grip on Global Finance, by Cornell and Brookings economist Eswar Prasad, due out the first week of February.
Be among the first to browse and download our new economics and finance catalog!
Of particular interest is The Great Escape: Health, Wealth, and the Origins of Inequality by Angus Deaton. In The Great Escape, Deaton—one of the foremost experts on economic development and on poverty—tells the remarkable story of how, starting 250 years ago, some parts of the world began to experience sustained progress, opening up gaps and setting the stage for today’s hugely unequal world. Deaton takes an in-depth look at the historical and ongoing patterns behind the health and wealth of nations, and he addresses what needs to be done to help those left behind. Demonstrating how changes in health and living standards have transformed our lives, The Great Escape is a powerful guide to addressing the well-being of all nations.
Also be sure to note Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change by Edmund Phelps. In this book, Nobel Prize-winning economist Edmund Phelps draws on a lifetime of thinking to make a sweeping new argument about what makes nations prosper—and why the sources of that prosperity are under threat today. Why did prosperity explode in some nations between the 1820s and 1960s, creating not just unprecedented material wealth but “flourishing”—meaningful work, self-expression, and personal growth for more people than ever before? Phelps makes the case that the wellspring of this flourishing was modern values such as the desire to create, explore, and meet challenges. These values fueled the grassroots dynamism that was necessary for widespread, indigenous innovation. Most innovation wasn’t driven by a few isolated visionaries like Henry Ford; rather, it was driven by millions of people empowered to think of, develop, and market innumerable new products and processes, and improvements to existing ones. Mass flourishing—a combination of material well-being and the “good life” in a broader sense—was created by this mass innovation.
And don’t miss out on An Uncertain Glory: India and its Contradictions by Jean Drèze & Amartya Sen. The deep inequalities in Indian society tend to constrict public discussion, confining it largely to the lives and concerns of the relatively affluent. Drèze and Sen present a powerful analysis of these deprivations and inequalities as well as the possibility of change through democratic practice.
Even more foremost titles in economics and finance can be found in the catalog. You may also sign up with ease to be notified of forthcoming titles at http://press.princeton.edu/subscribe/. Your e-mail address will remain confidential!
Looking dapper in their tuxedos, 2013 Nobel in Economics co-winner Robert Shiller (r) and Princeton University Press Director Peter Dougherty (l) prepare for the awards ceremony today at the Stockholm Concer Hall in Sweden. Shiller, along with fellow economists Eugene Fama and Lars Peter Hansen (also a PUP author), were awarded the prize in October. Read all about winners of the The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013, as it is officially called, on the official website.