PUP News of the World

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Welcome to the next edition of our brand new series, PUP News of the World! Every week we will be posting a round-up of all of our most exciting national AND international reviews/interviews/events/articles, etc. that took place in the last week.


http://press.princeton.edu/images/k9383.gifThis week our article of the week comes from Financial Times! In the spirit of the holidays, the FT has posted a list of the best books of 2013 as chosen by FT writers and guests, including six Princeton University Press titles!
In the category of Business, Marc Levinson’s book, The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, was chosen by none other than the Chairman of Microsoft, Bill Gates! Of the book, he said, “[This book] was published in 2006 but I read it just this year, around the time I visited the Panama Canal. A book about metal boxes may not sound like a thrill ride, but Levinson keeps it moving with compelling characters and surprising details. He unravels the history of how the shipping container revolutionised the way the world does business, affecting everything from shipping times to the depth of ports. A helpful guide to one of the cornerstones of globalisation. I won’t look at a cargo ship in quite the same way again.”
In the category of Economics, three of our books were chosen by Martin Wolf. The first, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It by Anat Admati & Martin Hellwig, Wolf called “[T]he most important book to have come out of the financial crisis”. The second, Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change by Edmund Phelps was called “[E]xtraordinary… Phelps has addressed some of the big questions about our future”. Last but not least, the third selection was The War of the Sexes: How Conflict and Cooperation Have Shaped Men and Women from Prehistory to the Present by Paul Seabright, which Wolf says “With characteristic brilliance, Seabright uses biology, sociology, anthropology and economics to explain the war of the sexes”.
In the category of History, Tony Barber chose two PUP titles. Barber called the first Prague, Capital of the Twentieth Century: A Surrealist History by Derek Sayer, “[T]houghtful, witty and well-illustrated”. He also selected Benn Steil’s The Battle of Bretton Woods:John Maynard Keynes, Harry Dexter White, and the Making of a New World Order, of which he said, “Steil’s book is an object lesson in how to make economic history entertaining and instructive”.
Lastly, in the category of Art, Jackie Wullschlager chose T.J. Clark’s Picasso and Truth: From Cubism to Guernica, calling it “[A] brilliant art-historical analysis… The most original book on Picasso for years”.


j10074[1]Robert Herritt of the Daily Beast reviewed Would You Kill the Fat Man? The Trolley Problem and What Your Answer Tells Us about Right and Wrong by David Edmonds, calling it “[I]mpressive…[A] walking tour of moral philosophy organized around one of the most well-known thought experiments of the last half century….By weaving together abstract principles, biographical sketches, historical examples, and trendy research in this just-so way, Edmonds has figured out how to illustrate the dimensions and consequences of moral decision-making without sacrificing entertainment value…[A] carefully executed book”.


There was a review in The Guardian for Why Can the Dead Do Such Great Things? Saints and Worshippers from the Martyrs to the Reformation by Robert Bartlett, in which Diarmaid MacCulloch said “… there is much to enjoy in the array of human behaviour, sacred and by our standards profane or just downright mad, chronicled in Bartlett’s excellent study.”


cookingAnne Kingston of Maclean’s wrote a feature on Cooking for Crowds: 40th Anniversary Edition by Merry White this week, saying “Recipes ahead of the curve 40 years ago—dirty rice, pork vindaloo— remain au courant; others—Swedish meatballs, Charlotte Malakoff au chocolat—exude a retro ’70s vibe that’s also au courant. Prep details for six, 12, 20 and 50 servings of each recipe are provided. Practical advice abounds, including not to multiply powerful spices like other ingredients… [Cooking for Crowds] remains a boffo resource for those hankering to make chicken Bengal for 12 or baklava for 50.”


Nicholas Kristof mentioned The Great Escape: Health, Wealth, and the Origins of Inequality by Angus Deaton in his New York Times Sunday Review column discussing foreign aid this past weekend.


Joan Acocella reviewed The Book of Job: A Biography by Mark Larrimore in The New Yorker.


Gordon Marino had an Op-Ed  piece about Nelson Mandela and Kierkegaard on the Chronicle’s “The Conversation” blog, which mentions The Quotable Kierkegaard, Marino’s most recent publication. Similarly, Marino had an Op-Ed in The New York Times this week in which he discusses Vitali Klitschko’s run for the Ukranian presidency.


David Wessel recently wrote an article about The Dollar Trap: How the U.S. Dollar Tightened Its Grip on Global Finance by Eswar S. Prasad in the Wall Street Journal, calling it “[A] surprising argument….[L]ucid….”. Prasad also did an interview with Wessel, which can be found here. Lastly, Prasad wrote an article for the Harvard Business Review about the argument his new book makes.


What W. H. Auden Can Do for You by Alexander McCall Smith was reviewed by Times Higher Education this week. Chris Jones called it  “charming”.


On a very international note, Edmund Phelps was interviewed about his book, Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change, by Die Welt (The World), a German national daily newspaper, this past weekend. Phelps also did a Q&A recently with Dylan Matthews that appeared on WashingtonPost.com’s Wonkblog in which they discuss his book, plus Arnold Kling reviewed Mass Flourishing on his blog, Econlib, saying “Phelps has given us a clear warning of the dangers of corporatism. I hope that more people hear and heed the warning.”


Sides_TheGamble3National Journal published their featured list of “The Best Political Books We Read in 2013” this week, which included The Gamble: Choice and Chance in the 2012 Presidential Election by John Sides & Lynn Vavreck. Of this selection, Steven Shepard said, “What really mattered in last year’s elections? George Washington University professor John Sides and UCLA professor Lynn Vavreck, in a remarkably fast turnaround for an academic work, applied social science to the developments of last year’s presidential election in The Gamble. It turns out that the events journalists described in real time (including this one) weren’t as important as they were made out to be. And Sides and Vavreck provide an important reality check that observers should heed before the daily doings of 2016 consume us all.”


Addiction by Design: Machine Gambling in Las Vegas by Natasha Dow Schüll, was recently listed in The Atlantic’s Best Book’s of the Year roundup. Alexis Madrigal said, “If books can be tools, Addiction by Design is one of the foundational artifacts for understanding the digital age—a lever, perhaps, to pry ourselves from the grasp of the coercive loops that now surround us.”


With Christmas rapidly approaching, Irish Independent put together a Christmas books round-up, which included The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order by Benn Steil, which they referred to as a “masterful account”.


The Limits of Partnership: U.S.-Russian Relations in the Twenty-First Century by Angela E. Stent was recently reviewed in the Kirkus Reviews. In the article they called it “[L]ucid….[R]eadable and sometimes surprising…..”.


Times Higher Education reviewed The Confidence Trap: A History of Democracy in Crisis from World War I to the Present by David Runicman this week, calling it “[I]nsightful”, and saying that “Runciman has written a brilliant book in which both the prose and the ideas sparkle”.


Lastly, a number of PUP books are featured in Bloomberg Businessweek’s best books of 2013 feature, “Buffett, Slim, Greenspan, El-Erian, Lew Pick Best Books of 2013.” The list includes Worldly Philosopher: The Odyssey of Albert O. Hirschman by Jeremy Adelman, The Banker’s New Clothes: What’s Wrong with Banking and What to Do about It by Anat Admati & Martin Hellwig, The Great Escape: Health, Wealth, and the Origins of Inequality by Angus Deaton, An Uncertain Glory: India and its Contradictions by Jean Drèze & Amartya Sen, and The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order by Benn Steil.


COMING SOON: An interactive map of the world where you can check out all of our reviews from multiple countries and continents, sorted by publication.

Anat Admati & Martin Hellwig Are Shortlisted for 2013 German Business and Economics Book Award

Anat Admati & Martin HellwigThe Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It
Shortlisted for the 2013 Deutsche Wirtschaftsbuchpreis (German Business and Economics Book Award), sponsored by Handelsblatt, the Frankfurt Book Fair, and Goldman Sachs.
The Bankers' New ClothesWhat is wrong with today’s banking system? The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and economic growth. The Bankers’ New Clothes examines this claim and the narratives used by bankers, politicians, and regulators to rationalize the lack of reform, exposing them as invalid.

Admati and Hellwig seek to engage the broader public in the debate by cutting through the jargon of banking, clearing the fog of confusion, and presenting the issues in simple and accessible terms. The Bankers’ New Clothes calls for ambitious reform and outlines specific and highly beneficial steps that can be taken immediately.

Anat Admati is the George G. C. Parker Professor of Finance and Economics at Stanford’s Graduate School of Business. She serves on the FDIC Systemic Resolution Advisory Committee and has contributed to the Financial Times, Bloomberg News, and the New York Times. Martin Hellwig is director at the Max Planck Institute for Research on Collective Goods. He was the first chair of the Advisory Scientific Committee of the European Systemic Risk Board and the cowinner of the 2012 Max Planck Research Award for his work on financial regulation.

Special Excerpt from “The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It”

The Bankers' New ClothesYesterday marked the fifth anniversary of the Lehman Brothers filing for bankruptcy in 2008, sending our economy into a tailspin. To note this occasion, we posted a list of some of our Top Banking Books to help people try to figure out what in the world is going on with our economy.
Along that same thread, today we have a special excerpt of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It by Anat Admati & Martin Hellwig posted below. In this excerpt (pages 11-12 to be exact), Admati and Hellwig address the Lehman Brothers fall and the ripple affect it had on America and even other countries abroad.
As a whole, the book addresses how risks in banking can impose significant costs on the economy. Many think that a safer banking system would require sacrificing lending and economic growth, but Admati and Hellwig  argue that we can have a safer and healthier banking system without sacrificing any of the benefits of the system, and at essentially no cost to society.
Check out the excerpt below!

In the run-up to the financial crisis, the debts of many large banks financed 97 percent or more of their assets. Lehman Brothers in the United States, Hypo Real Estate in Germany, Dexia in Belgium and France, and UBS in Switzerland had many hundreds of billions of dollars, euros, or Swiss francs in debt. Lehman Brothers filed for bankruptcy in September 2008. The other three avoided bankruptcy only because they were bailed out by their governments.


The Lehman Brothers bankruptcy caused severe disruption and damage to the global financial system. Stock prices imploded, investors withdrew from money market funds, money market funds refused to renew their loans to banks, and banks stopped lending to each other. Banks furiously tried to sell assets, which further depressed prices. Within two weeks, many banks faced the prospect of default.


To prevent a complete meltdown of the system, governments and central banks all over the world provided financial institutions with funding and with guarantees for the institutions’ debts. These interventions stopped the decline, but the downturn in economic activity was still the sharpest since the Great Depression. Anton Valukas, the lawyer appointed by the bankruptcy court to investigate Lehman Brothers, put it succinctly: “Everybody got hurt. The entire economy has suffered from the fall of Lehman Brothers . . . the whole world.”


In the fall of 2008, many financial institutions besides Lehman Brothers were also vulnerable. Ben Bernanke, chairman of the Federal Reserve, told the Financial Crisis Inquiry Commission (FCIC) that “out of maybe . . . 13 of the most important financial institutions in the United States, 12 were at risk of failure within a period of a week or two.” Some or all of the major banks in Belgium, France, Germany, Iceland, Ireland, the Netherlands, Switzerland, and the United Kingdom failed or were at significant risk of failing had their governments not bailed them out.


Accounts of the crisis often focus on the various breakdowns of bank funding between August 2007 and October 2008. Much bank funding consisted of very short-term debt. Banks were therefore vulnerable to the risk that this debt would not be renewed. The deeper reason for the breakdowns, however, was that banks were highly indebted. When banks suffered losses, investors, including other financial institutions, lost confidence and cut off funding, fearing that the banks might become unable to repay their debts.


The Lehman Brothers bankruptcy itself heightened investors’ concerns by showing that even a large financial institution might not be bailed out, and therefore that default of such an institution was a real possibility.


The problem posed by some banks being regarded as too big to fail is greater today than it was in 2008. Since then, the largest U.S. banks have become much larger. On March 31, 2012, the debt of JPMorgan Chase was valued at $2.13 trillion and that of Bank of America at $1.95 trillion, more than three times the debt of Lehman Brothers. The debts of the five largest banks in the United States totaled around $8 trillion. These figures would have been even larger under the accounting rules used in Europe.


In Europe, the largest banks are of similar size. Because European economies are smaller than that of the United States, the problem is even more serious there. Relative to the overall economy, banks are significantly larger in Europe than in the United States, especially in some of the smaller countries. In Ireland and Iceland before the crisis, the banking systems had become so large that, when the banks failed, these countries’ economies collapsed.


The traumatic Lehman experience has scared most governments into believing that large global banks must not be allowed to fail. Should any of these large banks get into serious difficulties, however, we may discover that they are not only too big to fail but also too big to save. There will be no good options.


The consequences of letting a large bank fail are probably more severe today than in the case of Lehman Brothers in 2008, but saving them might cripple their countries. The experiences of Ireland and Spain provide a taste of what can happen if large banking systems have to be saved by their governments. In both countries, the governments were unable to deal with their banking problems on their own, so they had to ask for support from the International Monetary Fund and from the European Union.