New Books In Economics

Fifteen years ago in Stockholm, Daniel Ek and Martin Lorentzon had a big idea. The music industry was playing a desperate game of whack-a-mole with piracy via file sharing but this was proving as hopeless as the War on Drugs. Why not, they thought, use the new torrenting technologies to bring piracy in from the cold and make themselves rich in the process? In 2006, they founded Spotify with a handful of engineers, no licences and no revenue. Today, Spotify is the world's most popular audio streaming subscription service with 345 million users and a market capitalization of $60 billion. How did the shy computer nerd and hyperactive investor tame hostile music labels and withstand competition from US tech giants more than ten times their size? Still struggling to achieve sustained profitability in cut-throat market segments, will Ek’s latest foray into podcasting eventually free Spotify of its dependency on the music labels or suffer the same fate as Spotify TV? The Spotify Play: How CEO and Founder Daniel Ek B

Much of the world's politics revolve around questions about the development of the international market for drugs; the roles merchants, government officials, and drug manufacturers played in shaping this market over time and space; and the process of globalization. There are no easy answers to these questions, but the decisions that all of us make about them will have tremendous consequences for individuals and for the planet in the future. Kenneth V. Faunce's new book Heavy Traffic: The Global Drug Trade in Historical Perspective (Oxford UP, 2020) helps students to understand globalization not as an inevitable or natural process, but instead as one that is created by and responds to a variety of human motivations. Examining the international trade in coffee, alcohol, opium, heroin, and cocaine, which have had a significant impact on economies and societies in countries around the world, it offers insight into globalization as a historical process, thereby helping to make sense of today's interconnected world

From 2002 to 2013, China’s rapid economic growth caused a boom in the prices of commodities—particularly of metals, fuel, and soybeans. According to political economist Dr. Nick Jepson, the commodity boom offered resource exporters in the Global South the financial resources and thus the opportunity to break away from international financial institutions like the International Monetary Fund and set their own policy agendas. But not all resource-exporting countries that benefited from the commodity boom took this path away from neoliberalism.  In his new book In China’s Wake: How the Commodity Boom Transformed Development Strategies in the Global South (Columbia University Press 2020), Jepson uses fieldwork, interviews, and qualitative comparative analysis (QCA) to identify and describe five typologies of resource exporters during the boom and the factors that contributed to differing development strategies and trajectories. China’s rise has had profound consequences on the processes of global capitalism, and

Even without the loss of the City of London from its jurisdiction, the EU has gone through a decade-long revolution in financial supervision and regulation since Lehman Brothers’ bankruptcy in 2008. The directives and regulations introduced in the wake of the crisis took years to negotiate, implement and stress-test against political reality in the last five years. The second wave of the crisis, which exposed the “doom loop” between fiscally weak states and their pet banks, spawned the European Banking Union but left some crucial remedial work undone. In this update of their 2015 edition of European Banking and Financial Law (Routledge, 2020), Matthias Haentjens and Pierre de Gioia Carabellese provide a comprehensive description and analysis of this growing body of new law, its origins, and policy implications. Matthias Haentjens is professor of law, director of the Hazelhoff Centre for Financial Law at the University of Leiden, and a deputy judge in the district court of Amsterdam. *His book recommendations

Meghan Condon and Amber Wichowsky have written an incredibly timely and fascinating study of our understanding of income inequality in the United States, and how this understanding contributes to the policies that are pursued, or, to their point, may not be pursued by elected officials to solve some of these entrenched economic problems. The Economic Other centers on understanding how we, individually, see ourselves in cross-class comparisons and how this comparison—either looking “upwards” towards those who are wealthier than we are, or “downwards” towards those who are less economically affluent than we are—shapes our understanding of economic inequality, shapes our sense of political efficacy, and shapes our demands (or lack of demands) for policies to rectify this economic gulf. Condon and Wichowsky used a complex mixed method approach to the research, including conducting experiments and surveys for their research, asking respondents to consider themselves in these various economic comparisons, while als

Revolution in Development: Mexico and the Governance of the Global Economy (University of California Press, 2021) uncovers the surprising influence of post-revolutionary Mexico on the twentieth century's most important international economic institutions.  Drawing on extensive archival research in Mexico, the United States, and Great Britain, Christy Thornton meticulously traces how Mexican officials repeatedly rallied Third World leaders to campaign for representation in global organizations and redistribution through multilateral institutions.  By decentering the United States and Europe in the history of global economic governance, Revolution in Development shows how Mexican economists, diplomats, and politicians fought for more than five decades to reform the rules and institutions of the global capitalist economy. In so doing, the book demonstrates, Mexican officials shaped not only their own domestic economic prospects, they shaped the contours of the project of international development itself. Rachel

Covid-19 is the global threat that owns today’s headlines, but the threat of international and domestic terrorism is still very much with us. Specifically, the widespread upheaval, uncertainty and global anxiety occasioned by the COVID-19 pandemic has been seen by terror organizations as a golden opportunity to tie their messaging to information about the disease and intensify their propaganda for purposes of recruitment and incitement to violence. Whether it’s Boko Haram or ISIS, Hezbollah or Hamas, or the range of hate groups acting around the globe, terrorism continues to be a threat to decent people everywhere. N. Darshan-Leitner and S. M. Katz's book Harpoon: Inside the Covert War Against Terrorism's Money Masters (Hachette, 2017) is a revelatory account of the cloak-and-dagger Israeli campaign to target the finances fueling terror organizations--an effort that became the blueprint for U.S. efforts to combat threats like ISIS and drug cartels. ISIS boasted $2.4 billion of revenue back in 2015, yet for to

George Orwell once said that “the word ‘fascism’ has now no meaning except in so far as it signifies ‘something not desirable’”. The word ‘neoliberalism’ knows exactly how it feels. How did a term coined by a group of anti-authoritarian German economists in the 1930s to label a philosophy that stressed the role of the state in ensuring efficient competition turn into more of an insult than a description 50 years later? Has the nationalist tide that swept through Washington, London, Rome, Brasília, and Budapest brought the neoliberal era to end or helped relaunch its “third wave”? What differentiates neo- from ordo- from classical liberalism? In this second edition of Neoliberalism: A Very Short Introduction (Oxford University Press, 2021), Manfred Steger and Ravi Roy seek to answer these questions, and retell the history of an idea, its mutations and its future. Manfred Steger is Professor of Sociology at the University of Hawaiʻi at Mānoa. Ravi Roy is Associate Professor of Political Science and W. Edwards D

Financial inclusion has been one of the most prominent issues on the international development agenda in recent years, as access to payments, remittances, credit, savings and insurance services have been shown to improve economic resilience and livelihoods. While bank account access remains low in many developing countries, widespread access to mobile phones is providing a platform to push financial access even into remote areas. The Covid-19 pandemic has only reinforced the importance of digital finance, which provides a safe, socially-distanced means to transact, including for distribution of social assistance transfers. In this episode, Dr Russell Toth spoke to Dr Thushara Dibley about his work on digital finance schemes and how owning a mobile phone can help lift people out of poverty in Myanmar. Russell Toth is a Senior Lecturer in the School of Economics at the University of Sydney. He is a development microeconomist, focusing on the development of the private sector in Southeast Asia and the Pacific,

Today the salary cap is an NBA institution, something fans take for granted as part of the fabric of the league or an obstacle to their favorite team’s chances to win a championship. In the early 1980s, however, a salary cap was not only novel but nonexistent. The Cap: How Larry Fleisher and David Stern Built the Modern NBA (University of Nebraska Press, 2020) tells the fascinating, behind-the-scenes story of the deal between the NBA and the National Basketball Players Association that created the salary cap in 1983, the first in all of sports, against the backdrop of a looming players’ strike on one side and threatened economic collapse on the other. Joshua Mendelsohn illustrates how the salary cap was more than just professional basketball’s economic foundation—it was a grand bargain, a compromise meant to end the chaos that had gripped the sport since the early 1960s. The NBA had spent decades in a vulnerable position financially and legally, unique in professional sports. It entered the 1980s badly batter

Jeff Broxmeyer has written a fascinating and insightful book about the party system in New York during the Gilded Age, but this is really only the foundation of the analysis. Electoral Capitalism: The Party System in New York's Gilded Age (U Pennsylvania Press, 2020) unwraps the many layers that contribute to our understanding of the party system not only in New York during this period after the Civil War, but throughout much of American politics during this time. As Broxmeyer notes throughout the book, this concept of electoral capitalism organized the party system in Gilded Age New York—and helps us think about how struggles over unequal wealth, or wealth gaps, shape democracy in America and the evolution of the party system in the U.S. Electoral Capitalism essentially examines these ideas from the top down and from the bottom up, spending the first half of the book examining the different political machines that became the power and wealth brokers in New York (William “Boss” Tweed and Tammany Hall, and Ros

Today I talked with Gary Hamel and Michele Zanini about their book Humanocracy: Creating Organizations As Amazing As the People Inside Them (HBR, 2020). This episode attacks the way bureaucracies are “innovation-phobic” and “soul crushing.” How can motivation, productivity and innovation be radically enhanced? By dismantling traditional power structures within large companies, giving employees the opportunity to become “micropreneurs.” Tying compensation to contribution and enabling true empowerment are the ways to go. Gary Hamel is on the faculty of the London Business School and has been hailed by the Wall Street Journal as the world’s most influential business thinker. Michele Zanini is, along with Hamel, the cofounder of the Management Lab. An alumnus of McKinsey & Company, Zanini has a degree from the John F. Kennedy School of Government at Harvard University. Dan Hill, PhD, is the author of eight books and leads Sensory Logic, Inc. (https://www.sensorylogic.com). To check out his related “Dan Hill’s EQ

Emma Griffin's Bread Winner: An Intimate History of the Victorian Economy (Yale UP, 2020) offers a refreshingly different take on the age of national prosperity in Britain from the 19th to early 20th centuries. Drawing from a collection of autobiographical accounts from largely-working class families, Griffin captures the forgotten stories of ordinary families who struggled to manage financially amidst the growing prosperity of the Victorian era. Her book touches on a range of important social, economic and gender issues that are equally relevant today as they were in their time. Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In the space of a few weeks this spring, organizations around the world learned that many traditional, in-person jobs could, in fact, be performed remotely. Before the COVID-19 pandemic, however, some individuals were already utilizing new options for personal mobility and online work to strike out on their own. In the new book, Digital Nomads: In Search of Freedom, Community, and Meaningful Work in the New Economy (Oxford UP, 2020), Rachael A. Woldoff and Robert C. Litchfield examine the growing demographic of individuals disaffected by the daily grind of office work who have left the U.S. and Europe to work remotely from low-cost global hubs around the world. These “digital nomads” seek out communities of like-minded unconventional people—what they call a tribe—in places like Indonesia, Thailand, Colombia, Mexico, or Portugal. Taking advantage of advancements in mobility, technology, and telecommunication, digital nomads are venturing around the world in search of a new way of living and working. Through do

Twenty-eight years after Francis Fukuyama declared the “end of history” and pronounced Western-style liberalism as the culmination of a Hegelian narrative of progress, pundits and academics of all stripes find themselves struggling to explain the failed prediction that China’s increased activity in international markets would inevitably lead to increasing political and social liberalization in that country.  With his ground-breaking book, Network Origins of the Global Economy: East vs. West in a Complex Systems Perspective, out from Cambridge University Press in 2020, Hilton L. Root takes a road less-traveled in contemporary economics and brings the analytical tools of systems theory to bear on this perplexing question, believing that a study of network structure might be able to shed more light than the traditional tools of economic analysis. This clearly argued and eminently readable book accounts for much of the current state of affairs by tracing the contrasting historical evolution of Europe as a Small W

The Idea of Development in Africa: A History (Cambridge UP, 2020) challenges prevailing international development discourses about the continent, by tracing the history of ideas, practices, and 'problems' of development used in Africa. In doing so, it offers an innovative approach to examining the history and culture of development through the lens of the development episteme, which has been foundational to the 'idea of Africa' in western discourses since the early 1800s. The study weaves together an historical narrative of how the idea of development emerged with an account of the policies and practices of development in colonial and postcolonial Africa. The book highlights four enduring themes in African development, including their present-day ramifications: domesticity, education, health, and industrialization. Offering a balance between historical overview and analysis of past and present case studies, Elisabeth McMahon and Corrie Decker demonstrate that Africans have always co-opted, challenged, and ref

Reinventing Bankruptcy Law: A History of the Companies’ Creditors Arrangement Act (University of Toronto Press, 2020) explodes conventional wisdom about the history of the Companies’ Creditors Arrangement Act and in its place offers the first historical account of Canada’s premier corporate restructuring statute. The book adopts a novel research approach that combines legal history, socio-legal theory, ideas from political science, and doctrinal legal analysis. Meticulously researched and multi-disciplinary, Reinventing Bankruptcy Law provides a comprehensive and concise history of CCAA law over the course of the twentieth century, framing developments within broader changes in Canadian institutions including federalism, judicial review, and statutory interpretation. Examining the influence of private parties and commercial practices on lawmaking, Virginia Torrie argues that CCAA law was shaped by the commercial needs of powerful creditors to restructure corporate borrowers, providing a compelling thesis abou

Money Games: The Inside Story of How American Dealmakers Saved Korea’s Most Iconic Bank (Wiley, 2020) by Weijian Shan’s, is a riveting tale of one of the most successful buyout deals ever: the acquisition and turnaround of what used to be Korea’s largest bank by the American firm Newbridge Capital. Full of intrigue and suspense, this insider's account is told by the chief architect of the deal itself, the celebrated author and private equity investor Weijian Shan. With billions of dollars at stake, and the nation's economic future on the line, Newbridge Capital sought to become the first foreign firm in history to take control of one of Korea’s most beloved financial institutions. In a proud country still reeling from a humiliating International Monetary Fund bailout in the Asian Financial Crisis, Newbridge Capital had to muster every ounce of skill, determination, and patience to bring the deal to closing. Shan takes readers inside the battle to win control of the bank—a delicate, often exasperating process

In the wake of the 2008-09 financial crisis, Adam Fergusson's When Money Dies: The Nightmare of the Weimar Hyperinflation became an unlikely publishing hit more than three decades after its release. Yet, even though few people knew the details of the 1923 crisis, stories and images from interbellum Germany are things of legend. The same cannot be said of the many other hyperinflationary episodes in the past century and especially the two most severe: the first in postwar Hungary and the second just 13 years ago in Zimbabwe. Hyperinflation in Zimbabwe: Background, Impact, and Policy (Palgrave, 2019) investigates what drove a process that, at its peak, led to 80-billion-percent inflation and the death of the country’s money. Tara McIndoe Calder, who lived through the crisis and now works as an economist in Dublin, examines what happened in her homeland but also the wider meaning of hyperinflation, how to measure it accurately, its common causes and how to stop it. Tara McIndoe Calder has been an economist at th

With the coronavirus pandemic, Modern Monetary Theory met its moment. A sudden and massive loss of output globally was met with an unprecedented response by governments and central banks and at least some official regret about excessive fiscal austerity after the 2008-09 crisis. Stephanie Kelton's The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy found a ready audience and remains in the New York Times Hardcover Nonfiction Best-Seller List six months after publication. Yet, one criticism of her book and of MMT generally is that its proponents, examples and policy proposals are overwhelmingly American and built on assumptions about having a sovereign and dominant global currency. Dirk Ehnts, a leading MMT proponent, seeks to address this criticism in  Modern Monetary Theory and European Macroeconomics (Routledge, 2016). In 2020, he published an updated edition in German as Money and Credit: A European Perspective (Metropolis, 2020). Dirk Ehnts earned his doctorate at the Carl von O