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Money Changes Everything: How Finance Made Civilization Possible
In the aftermath of recent financial crises, it's easy to see finance as a wrecking something that destroys fortunes and jobs, and undermines governments and banks. In Money Changes Everything , leading financial historian William Goetzmann argues the exact opposite―that the development of finance has made the growth of civilizations possible. Goetzmann explains that finance is a time machine, a technology that allows us to move value forward and backward through time; and that this innovation has changed the very way we think about and plan for the future. He shows how finance was present at key moments in driving the invention of writing in ancient Mesopotamia, spurring the classical civilizations of Greece and Rome to become great empires, determining the rise and fall of dynasties in imperial China, and underwriting the trade expeditions that led Europeans to the New World. He also demonstrates how the apparatus we associate with a modern economy―stock markets, lines of credit, complex financial products, and international trade―were repeatedly developed, forgotten, and reinvented over the course of human history.
Exploring the critical role of finance over the millennia, and around the world, Goetzmann details how wondrous financial technologies and institutions―money, bonds, banks, corporations, and more―have helped urban centers to expand and cultures to flourish. And it's not done reshaping our lives, as Goetzmann considers the challenges we face in the future, such as how to use the power of finance to care for an aging and expanding population.
Money Changes Everything presents a fascinating look into the way that finance has steered the course of history.
Exploring the critical role of finance over the millennia, and around the world, Goetzmann details how wondrous financial technologies and institutions―money, bonds, banks, corporations, and more―have helped urban centers to expand and cultures to flourish. And it's not done reshaping our lives, as Goetzmann considers the challenges we face in the future, such as how to use the power of finance to care for an aging and expanding population.
Money Changes Everything presents a fascinating look into the way that finance has steered the course of history.
600 pages, Hardcover
First published April 5, 2016
285 people are currently reading
4507 people want to read
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September 26, 2020
This book is a history of finance, beginning in archaic civilizations and moving through Greece, Rome, the Middle Ages, India, and China up through the present and the crisis of 2008. The author is a prolific finance professor at Yale who also appears to have credentials in archaeology and history. The premise of the book is straightforward - the historical record if examined will show how knowledge about finance is crucial for a society to become a functioning and valuable civilization. Successful financial management is critical to the growth and maintenance of civilizations. This is not some ideal norm but rather the claim that if a society does not solve its financial problems then it will not and cannot develop into a real civilization. When a society cannot meet its fundamental financial obligations to its members, then big trouble follows (see France in 1789). This sounds like an exceptionally strong claim, but it is not as odd as it might seem. I suspect that most finance professors have known for a while that what they teach is very important for the world. What is different about Goetzmann's book is that he actually makes the beginnings of a plausible case about the importance of finance for society. I have read lots of history and have frequently wondered how some wars or regime was funded - how did the financing work? This book provides some good insights on that.
The book is not a comprehensive history of finance. Such a book would be much longer and highly technical in nature. As a result, this book is of necessity selective and its choice of topics very much a matter of the author's personal interests.. Having said that, however, the chapters and states selected are excellent and the major issues get addressed. Goetzmann has done a fine job is done on the chapters This is a well written and well crafted result.
This is an involved book and each chapter provides a detailed story about its time and place - I will not try to summarize them here. Each chapter is well referenced, in case more reading is sought. A personal indicator for me of how valuable I found the book was how many referenced books I made note to obtain (or have already obtain). Some in the earlier chapters are even available for free on the Internet in pdf form. Goetzmann's book is also amazing for its incorporation of geography into his chapters. One could easily plan a vacation themed on the history of finance that would take you to various cites in Italy, France, London, Russia, and China - or more if wished.
While finance can be a technical subject with lots of math, Goetzmann's book is very accessible. His descriptions of various problems and models are largely verbal and generally clear. There are lots of terms thrown around - for example an extended discussion of various ideas of liability in the Roman economy - but it is easy to follow if one keeps Google or some related financial site handy. This is a serious book, however, and readers may find it necessary to check up on parts of their general history that are a bit rusty (Medieval Europe; Chinese Dynasties). This book was better read a few chapters at a time. There is a lot of material presented and readers will need to pay attention.
I learned a lot from the book and was especially fascinated by how the author showed the longstanding history behind many if not most of our financial institutions and problems. Finance was around long before the rise of modern financial analysis after WWII. Goetzmann was also very effective at tying together aspects of history that I had wondered about, for example, how the English and French financial bubbles early in the 18th century were related to the emergence of the Industrial Revolution later in the century. The book is also wonderful on matters of agency problems and corporate organization, which are not well covered in many histories.
The book is a bit of a slog, but it gets easier the closer it comes to the present - where there was less new material for me. Overall, the book was well worth the effort.
The book is not a comprehensive history of finance. Such a book would be much longer and highly technical in nature. As a result, this book is of necessity selective and its choice of topics very much a matter of the author's personal interests.. Having said that, however, the chapters and states selected are excellent and the major issues get addressed. Goetzmann has done a fine job is done on the chapters This is a well written and well crafted result.
This is an involved book and each chapter provides a detailed story about its time and place - I will not try to summarize them here. Each chapter is well referenced, in case more reading is sought. A personal indicator for me of how valuable I found the book was how many referenced books I made note to obtain (or have already obtain). Some in the earlier chapters are even available for free on the Internet in pdf form. Goetzmann's book is also amazing for its incorporation of geography into his chapters. One could easily plan a vacation themed on the history of finance that would take you to various cites in Italy, France, London, Russia, and China - or more if wished.
While finance can be a technical subject with lots of math, Goetzmann's book is very accessible. His descriptions of various problems and models are largely verbal and generally clear. There are lots of terms thrown around - for example an extended discussion of various ideas of liability in the Roman economy - but it is easy to follow if one keeps Google or some related financial site handy. This is a serious book, however, and readers may find it necessary to check up on parts of their general history that are a bit rusty (Medieval Europe; Chinese Dynasties). This book was better read a few chapters at a time. There is a lot of material presented and readers will need to pay attention.
I learned a lot from the book and was especially fascinated by how the author showed the longstanding history behind many if not most of our financial institutions and problems. Finance was around long before the rise of modern financial analysis after WWII. Goetzmann was also very effective at tying together aspects of history that I had wondered about, for example, how the English and French financial bubbles early in the 18th century were related to the emergence of the Industrial Revolution later in the century. The book is also wonderful on matters of agency problems and corporate organization, which are not well covered in many histories.
The book is a bit of a slog, but it gets easier the closer it comes to the present - where there was less new material for me. Overall, the book was well worth the effort.
December 2, 2018
What makes civilisation possible? Goetzmann posited that it is money or finance. Financial innovation was the key ingredient that made human progress thus civilisation possible.
The main problem, is how for any one person or company afford the huge investment that makes huge projects possible? In Mesopotamia, we first had loans and bookkeeping so farmers could borrow money to buy seeds and employ labor, to pay back with interest once harvest was done.
Greece and Rome were powerful because they had access to metal mines that provided precious metals to make coins that effectively expanded their money supply, and all countries accepted the metals for trade. Greece also invented pooling of money to finance trade voyages with detailed contracts and a functional court to mediate disputes. The Chinese however first invented paper money backed by banks or governments.
The Templars built stations all across Europe to the middle east to enable the invention of Traveller’s cheque where one could deposit their money in Europe and withdrew alone the way and at the destination. The Chinese invented similar country wide banking stations.
The Venice government issued bonds that paid interest to finance its wars. It always repaid and so had good credits. Monarchs who did not repay their creditors found themselves shut out of the credit market.
Amsterdam and subsequently London used the publicly sold bonds to finance their empires, fought wars and colonised. The horrible American slave trade and Opium trade were prime examples of the exploits.
Europe prospered mainly because of financial innovation from the study of risks (from gambling), enabling hem to sell insurance and annuities.
In America shares were favoured over bonds and this allowed publicly traded companies to be formed that built the railways, ports etc. Unfortunate in China the government controlled all the resources and thus lagged behind in this amazing financial technology.
And then there was modern finance, with securitization that was supposed to spread risk and further allowed investors to invest their money. Then new theories such as efficient market theorem that enabled the calculation of option prices appeared.
Throughout history, the wisdom of crowds sometimes turned into the madness of mobs and over-enthusiasm led to over-pricing and then crash and depression. It cannot really be prevented.
A well researched book that took real effort to read but ultimately extremely worthwhile. I am very impressed with the author’s knowledge of the Chinese language and ancient Chinese economic development, and thank you for including original Chinese characters for easy cross-reference with what I knew from Chinese history!
The main problem, is how for any one person or company afford the huge investment that makes huge projects possible? In Mesopotamia, we first had loans and bookkeeping so farmers could borrow money to buy seeds and employ labor, to pay back with interest once harvest was done.
Greece and Rome were powerful because they had access to metal mines that provided precious metals to make coins that effectively expanded their money supply, and all countries accepted the metals for trade. Greece also invented pooling of money to finance trade voyages with detailed contracts and a functional court to mediate disputes. The Chinese however first invented paper money backed by banks or governments.
The Templars built stations all across Europe to the middle east to enable the invention of Traveller’s cheque where one could deposit their money in Europe and withdrew alone the way and at the destination. The Chinese invented similar country wide banking stations.
The Venice government issued bonds that paid interest to finance its wars. It always repaid and so had good credits. Monarchs who did not repay their creditors found themselves shut out of the credit market.
Amsterdam and subsequently London used the publicly sold bonds to finance their empires, fought wars and colonised. The horrible American slave trade and Opium trade were prime examples of the exploits.
Europe prospered mainly because of financial innovation from the study of risks (from gambling), enabling hem to sell insurance and annuities.
In America shares were favoured over bonds and this allowed publicly traded companies to be formed that built the railways, ports etc. Unfortunate in China the government controlled all the resources and thus lagged behind in this amazing financial technology.
And then there was modern finance, with securitization that was supposed to spread risk and further allowed investors to invest their money. Then new theories such as efficient market theorem that enabled the calculation of option prices appeared.
Throughout history, the wisdom of crowds sometimes turned into the madness of mobs and over-enthusiasm led to over-pricing and then crash and depression. It cannot really be prevented.
A well researched book that took real effort to read but ultimately extremely worthwhile. I am very impressed with the author’s knowledge of the Chinese language and ancient Chinese economic development, and thank you for including original Chinese characters for easy cross-reference with what I knew from Chinese history!
August 19, 2016
William Goetzmann's "Money Changes Everything" offers a sweeping history of the role of finance and financial innovations in social complexification, from ancient Mesopotamia to the post-war West. The book is well-researched, reasonably accessible (albeit still jargon-heavy by the nature of the topic), and interesting.
I would have been interested in more analysis of the last hundred years, which are really underdiscussed in Goetzmann's account. The post-1970s "financialization" of the economy deserves far more attention, although it would risk challenging the narrative of "civilizational advancement" in some regards. Goetzmann doesn't deny that finance has had some less than honorable elements to its history (such as the connection with slavery), but he largely sidelines this, choosing not to look at the social and environmental impacts that the charters and calculations have had. Reading "Money Changes Everything," one realizes how much more there is to "everything" than what Goetzmann discusses, and the way finance empowers some groups over others (both within and between countries), creates class systems, entrenches power structures, and shapes political processes is as much a part of how "everything changed" than the developments in finance *as a practice*.
I would have been interested in more analysis of the last hundred years, which are really underdiscussed in Goetzmann's account. The post-1970s "financialization" of the economy deserves far more attention, although it would risk challenging the narrative of "civilizational advancement" in some regards. Goetzmann doesn't deny that finance has had some less than honorable elements to its history (such as the connection with slavery), but he largely sidelines this, choosing not to look at the social and environmental impacts that the charters and calculations have had. Reading "Money Changes Everything," one realizes how much more there is to "everything" than what Goetzmann discusses, and the way finance empowers some groups over others (both within and between countries), creates class systems, entrenches power structures, and shapes political processes is as much a part of how "everything changed" than the developments in finance *as a practice*.
November 4, 2017
This is a book that changed my thoughts on what money and finance really is. To be honest, I started out disappointed, thinking that I'd bought a book that was going to explain money to me and instead was going on and on about credit and other financial innovations that people came up with over the past few thousand years. It was only after time that I started to put together that this was all money: that you can't disentangle finance and money because they are one and the same part of the process of bringing together the far flung regions of the world, the past, and all possible states of the future, to the here and now. Highly recommend.
July 26, 2016
This is an astonishing book. I wish it had been available when I first started studying finance and I wish my students over many years had been able to read it. The author does a truly amazing job of demonstrating how finance and civilisation are intertwined, showing how vitally important finance has been throughout history. It is, in effect, a history of the world from the perspective of finance. The underpinning research is extensive and a dedicated reader will find it easy to follow up points of interest in depth. But the author wears his scholarship lightly: it is an immensely readable book, well written, impressively structured to retain the non-specialist reader's interest. Highly recommended.
(I received an electronic copy via Netgalley)
(I received an electronic copy via Netgalley)
July 9, 2023
Un saggio un po' difficile e a tratti tecnico, ma che ripercorre con grande attenzione i passaggi più delicati dello sviluppo della finanza e del modo in cui ha influenzato (e supportato) il progresso verso il mondo che conosciamo.
May 25, 2018
Money Changes Everything: How Finance Made Civilization Possible (2016) by William N Goetzmann is a very impressive book that looks at how finance has evolved through history. The book does a great job in explaining how important financial developments have been for the development of the world.
The book is broken into sections that look at ancient Mesopotamian finance, ancient Greek finance, Roman finance, Chinese finance, the the changes to modern finance in Europe that helped Europe explore and dominate the world and how modern finance has become global.
Goetzmann is a professor of finance and management studies at Yale and is an expert on the history of finance.
The sections on the ancient world show how important the development of finance was to the development of math and how important it was for cities and empires to employ finance. It was startling to discover that 90% of the records recovered from some Mesopotamian cities were financial records.
The sections on Roman and Greek finance showed how large cities could use finance to get their food supplies and what sort of laws were required. The section on Chinese finance is also remarkable and shows how Chinese rulers used coins and then paper money.
The section on the development of European financial developments from the twelfth century onward is fantastic. Making the point that Hindu-Arabic numerals were popularised in the Liber Abaci is very much worthwhile. The trading of bills of exchange, then the creation of companies and stock market booms and bubble is very well explained.
The weakest part of the book is the modern section where oddly Marx and Ayn Rand's contribution to finance is pondered. While Marx is certainly an important figure in history it's odd to have in the book. The book also has quite a bit on Keynes. Keynes is more justified but still it's somewhat odd.
The book is broken into sections that look at ancient Mesopotamian finance, ancient Greek finance, Roman finance, Chinese finance, the the changes to modern finance in Europe that helped Europe explore and dominate the world and how modern finance has become global.
Goetzmann is a professor of finance and management studies at Yale and is an expert on the history of finance.
The sections on the ancient world show how important the development of finance was to the development of math and how important it was for cities and empires to employ finance. It was startling to discover that 90% of the records recovered from some Mesopotamian cities were financial records.
The sections on Roman and Greek finance showed how large cities could use finance to get their food supplies and what sort of laws were required. The section on Chinese finance is also remarkable and shows how Chinese rulers used coins and then paper money.
The section on the development of European financial developments from the twelfth century onward is fantastic. Making the point that Hindu-Arabic numerals were popularised in the Liber Abaci is very much worthwhile. The trading of bills of exchange, then the creation of companies and stock market booms and bubble is very well explained.
The weakest part of the book is the modern section where oddly Marx and Ayn Rand's contribution to finance is pondered. While Marx is certainly an important figure in history it's odd to have in the book. The book also has quite a bit on Keynes. Keynes is more justified but still it's somewhat odd.
April 7, 2023
Grand work of financial history. The sheer wealth of knowledge processed in this book is astounding. Clear recommendation for anyone interested in going deep into economic and financial history.
Goetzmann builds a basic argument on top an immense historical foundation: finance as a technology has been a constant enabler of civilization. Many advancements such as written language or probabilistic thought owe themselves to financial problems. Finance and civilization have been intertwined for more than 7,000 years. He traces this process throughout historical periods, cultures and geographies.
Two points of criticism: (1) Goetzmann – like so many social scientists – has a tendency to ascribe all too much value to his own discipline. Meaning: he sometimes makes finance seem like the one-size-fits-all explanation. (2) Some chapters are quite lengthy, loosing themselves in overly detailed historical descriptions. This might appeal to some readers. To me, it was, at times, too much.
Goetzmann builds a basic argument on top an immense historical foundation: finance as a technology has been a constant enabler of civilization. Many advancements such as written language or probabilistic thought owe themselves to financial problems. Finance and civilization have been intertwined for more than 7,000 years. He traces this process throughout historical periods, cultures and geographies.
Two points of criticism: (1) Goetzmann – like so many social scientists – has a tendency to ascribe all too much value to his own discipline. Meaning: he sometimes makes finance seem like the one-size-fits-all explanation. (2) Some chapters are quite lengthy, loosing themselves in overly detailed historical descriptions. This might appeal to some readers. To me, it was, at times, too much.
January 21, 2024
Great book on history of financial markets: from banking to insurance, and money to social security. A must read for people working in the financial fields and anyone who is interested in finance in order to understand where it began and who were the people that influenced the evolution of financial markets. I was very surprised to find out about the first companies in Europe in Touluse and Florence since I have a great interest in how companies evolved in time. A lot of new names and a lot of info, an overwhelming amount of new data. Not a book for everyone though, because it is quite thick and goes into a lot of details.
March 14, 2019
This book is a sort of financial companion to A Splendid Exchange: How Trade Shaped the World from Prehistory to Today and perhaps Against the Grain: A Deep History of the Earliest States. A lot of what we think of as a modern ill -- financial crises, government bailouts, and the like -- is actually millennia old.
Some of the historical chapters got a little dry, and the last chapter or so has a strong cheerleading tone, almost as if Geotzmann had written the entire book to lead up to the ideas of sovereign wealth funds and well-designed pension/retirement systems. But that's a minor quibble for an otherwise very impressive book.
Some of the historical chapters got a little dry, and the last chapter or so has a strong cheerleading tone, almost as if Geotzmann had written the entire book to lead up to the ideas of sovereign wealth funds and well-designed pension/retirement systems. But that's a minor quibble for an otherwise very impressive book.
August 28, 2018
Could have been a third thinner.
February 28, 2022
Fabrizio, un fratello, mi ha regalato questo libro a Natale del 2018. Essendo un tomo di 700 pagine l’ho ringraziato molto, ma dentro la testa pensavo “oh no, come troverò il tempo?”. A quel tempo feci un tentativo, studiando attentamente le prime 50 pagine e prendendo addirittura appunti sul quaderno: l’invenzione dell’interesse, la tavoletta di Drehem del 2100 a.C. , il codice di Hammurabi, ecc. Poi a un certo punto, preso da altre cose che mi sembravano più urgenti, avevo smesso di leggerlo.
Questo mese sono riuscito a riprenderlo e, impegnandomi tutte le mattine con costanza, ad inoltrarmi attraverso i vari capitoli riguardanti: la finanza romana, l’eredità finanziaria della Cina, il tempio e la finanza medioevale, i Cavalieri Templari, le opinioni di santi e filosofi sull’usura, la nascita dei primi strumenti obbligazionari a Venezia e Genova, i primi esperimenti di sistema pensionistico, l’avvento di certi modelli matematico-probabilistici applicati al calcolo statistico del rischio; ed ancora: spiegazioni su Fibonacci, sulle prime teorie dei mercati efficienti, sulla creazione delle Corporation per le esplorazioni geografiche, sulla progettazione e la corsa alla quotazione di titoli nella borsa di Londra del 1719, su John Law a Parigi, sulla situazione assicurativa in Olanda, su Hoyle, sui nuovi sistemi di cartolarizzazione del debito nelle colonie americane ed infine su Marx, ancora sui cinesi, sulla borsa di Pietroburgo, su Keynes, e su tutti gli avvenimenti più moderni fino alla crisi dei mutui subprime del 2008.
Nonostante l’autore sia un accademico politically correct in piena regola, Professore di Finanza e Management e direttore del Centro Internazionale per la Finza a Yale, non ho potuto fare a meno di apprezzare, per lo meno come esercizio linguistico-speculativo, la sua destrezza nel far passare una visione ultra positivista dei mercati finanziari. Goetzmann manipola la narrazione delle varie ideologie economiche della storia, trovando sempre lo spazio per inserire delle frasi che riequilibrano l’entusiasmo assoluto sull’evoluzione dell’ingegneria finanziaria con l’inclusione di critiche (seppur blande e trattate in modo parziale), atte a restituire alle analisi una parvenza di neutralità e oggettività.
D’altra parte, mi sono un po’ dispiaciuto pensando a chi, come probabilmente i suoi alunni alla Yale, legge o peggio studia questi testi prendendo per oro colato tutto ciò che vi trova. Egli acquisisce, se poco attento, una visione del mondo che giustifica l’odierno sistema bancario e l’economia neoliberista, purtroppo caratterizzata dalla speculazione sfrenata, dal cancro dei derivati e dall’accentramento di potere in mani spesso criminali.
" Sembrava la carriera perfetta per un giovane garbato e socialmente altolocato con una buona testa per la matematica. […] John Law è senza tema di smentite la figura più interessante nella storia della finanza. "
Titolo originale : Money Changes Everything [!!!]
Edizione : Il Saggiatore ; 2017
Questo mese sono riuscito a riprenderlo e, impegnandomi tutte le mattine con costanza, ad inoltrarmi attraverso i vari capitoli riguardanti: la finanza romana, l’eredità finanziaria della Cina, il tempio e la finanza medioevale, i Cavalieri Templari, le opinioni di santi e filosofi sull’usura, la nascita dei primi strumenti obbligazionari a Venezia e Genova, i primi esperimenti di sistema pensionistico, l’avvento di certi modelli matematico-probabilistici applicati al calcolo statistico del rischio; ed ancora: spiegazioni su Fibonacci, sulle prime teorie dei mercati efficienti, sulla creazione delle Corporation per le esplorazioni geografiche, sulla progettazione e la corsa alla quotazione di titoli nella borsa di Londra del 1719, su John Law a Parigi, sulla situazione assicurativa in Olanda, su Hoyle, sui nuovi sistemi di cartolarizzazione del debito nelle colonie americane ed infine su Marx, ancora sui cinesi, sulla borsa di Pietroburgo, su Keynes, e su tutti gli avvenimenti più moderni fino alla crisi dei mutui subprime del 2008.
Nonostante l’autore sia un accademico politically correct in piena regola, Professore di Finanza e Management e direttore del Centro Internazionale per la Finza a Yale, non ho potuto fare a meno di apprezzare, per lo meno come esercizio linguistico-speculativo, la sua destrezza nel far passare una visione ultra positivista dei mercati finanziari. Goetzmann manipola la narrazione delle varie ideologie economiche della storia, trovando sempre lo spazio per inserire delle frasi che riequilibrano l’entusiasmo assoluto sull’evoluzione dell’ingegneria finanziaria con l’inclusione di critiche (seppur blande e trattate in modo parziale), atte a restituire alle analisi una parvenza di neutralità e oggettività.
D’altra parte, mi sono un po’ dispiaciuto pensando a chi, come probabilmente i suoi alunni alla Yale, legge o peggio studia questi testi prendendo per oro colato tutto ciò che vi trova. Egli acquisisce, se poco attento, una visione del mondo che giustifica l’odierno sistema bancario e l’economia neoliberista, purtroppo caratterizzata dalla speculazione sfrenata, dal cancro dei derivati e dall’accentramento di potere in mani spesso criminali.
" Sembrava la carriera perfetta per un giovane garbato e socialmente altolocato con una buona testa per la matematica. […] John Law è senza tema di smentite la figura più interessante nella storia della finanza. "
Titolo originale : Money Changes Everything [!!!]
Edizione : Il Saggiatore ; 2017
January 26, 2023
From the Bronze Age city of Uruk all the way up to the aftermath of the 2008 financial crisis, Money Changes Everything presents a history of the world through the lens of the financial tools, innovations, and tribulations of many of the world’s greatest civilizations. Uruk, Ancient Greece, Rome, China, Europe, and finally the USA are visited to discover the financial innovations that each developed to respond to their needs.
Tales of individuals from these civilizations help greatly in illustrating how many financial innovations came to be. The storytelling is complemented with pictures of of relevant objects/places to help immerse yourself in these ancient civilizations. It was particularly interesting to observe how the development of financial tools are responses to the needs of civilizations. Goetzman also makes sure to make the point that there does not exist a singular path of financial development which he shows by contrasting Europe and China.
On the subject of China, this book provides great understanding of its current economy by tracing its ancient roots and evolution over time. Compared to European states, China has generally had a much stronger, centralized, and united government over time. As a result, private enterprise as always been subservient to the interests and capabilities of the Chinese state which I believe continues to be true today.
The timeline developed by Goetzman also demonstrates that financial development rarely, if ever, follows a smooth trajectory. Innovations typically experience significant growing pains which can cause them to fall out of favour for centuries before being implemented in full.
The hesitancy I would have in recommending this book is that it requires you already be interested in finance, history, or ideally both. If you’re disinterested in these topics, I don’t believe this book will spark any interest in these areas. It is also on the longer side and is dense with information. So if you’re not really interested in this somewhat niche topic I would recommend picking something else.
Tales of individuals from these civilizations help greatly in illustrating how many financial innovations came to be. The storytelling is complemented with pictures of of relevant objects/places to help immerse yourself in these ancient civilizations. It was particularly interesting to observe how the development of financial tools are responses to the needs of civilizations. Goetzman also makes sure to make the point that there does not exist a singular path of financial development which he shows by contrasting Europe and China.
On the subject of China, this book provides great understanding of its current economy by tracing its ancient roots and evolution over time. Compared to European states, China has generally had a much stronger, centralized, and united government over time. As a result, private enterprise as always been subservient to the interests and capabilities of the Chinese state which I believe continues to be true today.
The timeline developed by Goetzman also demonstrates that financial development rarely, if ever, follows a smooth trajectory. Innovations typically experience significant growing pains which can cause them to fall out of favour for centuries before being implemented in full.
The hesitancy I would have in recommending this book is that it requires you already be interested in finance, history, or ideally both. If you’re disinterested in these topics, I don’t believe this book will spark any interest in these areas. It is also on the longer side and is dense with information. So if you’re not really interested in this somewhat niche topic I would recommend picking something else.
This entire review has been hidden because of spoilers.
May 18, 2020
A comprehensive study on how finance allowed civilization to develop through Mesopotamia, Ancient Greece, Rome, China, Europe, and modern America. Goetzmann takes the nuanced view that capitalism is not teleological, meaning that it is not an end or the final explanation for all of human history. A view I tend to agree with. That when one looks throughout history, capitalism has in fact adapted and changed in form to fit the needs of society and the politics of the time. It can stop as much as it can start. Reading his version of financial history makes me agree with his underlying thesis that financial markets have evolved through time. If one looks at the evolution of contracts, loans, companies, and capital markets then one cannot but think that capitalism cannot be viewed with a capital C. Rather, it is a mishmash of different ideas and tools to create value within society. For 5,000 years, human beings have created contract's promising money in the future for money now. This will not change. But, like a marble block ready to be carved into a statue, it is the sculpture who creates the form the block ultimately takes. The sculptures of these financial tools today are governments and financial institutions. People are those who create these financial tools we live by (mortgages, loans, capital markets, etc). So change is always inevitable, and new tools to fit our needs will eventually appear. The pebble will not fall in the same river twice. Or as the author succinctly points out, "As the world changes, finance adapts."
*4 stars because although the ancient history of finance was one of the best I have read, the modern analysis was left wanting
*4 stars because although the ancient history of finance was one of the best I have read, the modern analysis was left wanting
January 28, 2023
In history, we often hear about the roles played by individuals, diplomacy, politics, war, religion, science, and technology, but one of the most fundamental driving forces behind human progress is much more mundane: finance. This book examines finance as technology and the role of competent and ethical administration as a necessity for development and human prosperity. The author approaches finance as something neither good nor bad. Modern politics takes sides in the economic debate, but this book stays remarkably apolitical. It suffers from the same deficiencies that many grand historical narratives do by having both too much information and not enough. Some chapters are less interesting and seem to drag on, but the book also excludes a lot of important info. However, it does offer a solid overview of the history of finance and the bibliography is ripe with good, additional reading material. The author maintains a positive and constructive tone throughout, and he concludes with this:
Discoveries of various financial solutions led to some of civilization's most important achievements: writing, the mathematics of probability, mechanisms for savings and investment, and the harmonization of global relations. Financial technology also created serious problems. The invention of debt was connected to slavery, reparations payments, imperialism, and financial crises. A long-term historical perspective on this duality in the nature of finance is important. At a minimum, it can guide our thinking about the design of financial institutions in the future. (p. 519)
November 18, 2024
William N. Goetzmann’s Money Changes Everything is an enlightening journey through the history of finance and its role in shaping civilization. The author masterfully connects the dots between financial innovation and the advancement of society, illustrating how concepts like credit, banking, and insurance have fueled human progress.
What I appreciated most was how Goetzmann explains complex ideas with clarity, making this book accessible to readers without a background in economics. His examples, drawn from different periods and cultures, make the narrative both engaging and thought-provoking.
However, while the book is rich in detail, some sections feel overly academic, which might make it a bit dense for casual readers. Still, it’s a must-read for anyone curious about the underpinnings of modern civilization.
For those exploring topics in finance or customer service, resources like the purdue federal credit union customer service page might also provide valuable insights into how financial institutions impact everyday life.
September 8, 2022
It was a very interesting book thoroughly covering the history of money and our financial institutions, technologies and information systems. What I liked about it was that it broke everything down to the bare bones and we see the origins of and reasoning behind important concepts such as debt, time value of money, risk, fiat currency and trade. The book really showed me how central finance is to our society and also that it is quite logical that finance emerged and why our financial system looks the way it does today. While some chapters were quite dry especially those discussing ancient artefacts, they still helped carry the reader along. Overall, this is a great book to get an overview of the history of finance.
December 12, 2017
Un bellissimo libro sul ruolo della tecnologia finanziaria nello spingere una comunità a trasformarsi in una civilizzazione e proprio nel creare accelerazione tecnologica e soprattutto prosperità.
Un excursus completo dai Sumeri alla tecnofinanza eccezionale.
Ottima la dialettica tra democrazia e sistema finanziario.
L'autore fa un po' lo gnorri sui crimini finanziari gravissimi nella crisi del 2008, forse considerati un male inevitabile nella corsa verso il futuro.
Dopo questo aspetto Taleb e Skin in the game.
Un excursus completo dai Sumeri alla tecnofinanza eccezionale.
Ottima la dialettica tra democrazia e sistema finanziario.
L'autore fa un po' lo gnorri sui crimini finanziari gravissimi nella crisi del 2008, forse considerati un male inevitabile nella corsa verso il futuro.
Dopo questo aspetto Taleb e Skin in the game.
November 22, 2021
Good History of Money
I love history and when I have gotten older, I started looking into investing and I didn’t have a good grasp on the history of money. Most people talk about history from the point of view of “Great Man History” and how life was for the average person. I didn’t know how finance was working in the background making civilization possible. This was the book that I really needed right now.
I love history and when I have gotten older, I started looking into investing and I didn’t have a good grasp on the history of money. Most people talk about history from the point of view of “Great Man History” and how life was for the average person. I didn’t know how finance was working in the background making civilization possible. This was the book that I really needed right now.
January 8, 2025
Sterk verhaal over hoe Finance en historische tijdperken met elkaar verbonden zijn en welke wiskundige technieken nieuwe mogelijkheden creërde voor staten. Zeker de zeventiende eeuw krijgt genoeg aandacht als begin van moderne financieringstechnieken en hoe die vaak samenhingen met het koloniale project. De aandacht en het verschil van china's technieken zijn welkome afwisseling en een leuk contrast. De moderne naoorlogse tijd komt er wel bekaaid vanaf met weinig terugblik op 1950-2000.
November 18, 2020
Good overview of the interaction between financial innovation and state evolution through history
In general the book is very informative, entertaining and well structured. It emphasizes the relevance of how finance has helped (or not) economies to grow. The last part covering the 1920s and onwards felt a little loose and rushed.
In general the book is very informative, entertaining and well structured. It emphasizes the relevance of how finance has helped (or not) economies to grow. The last part covering the 1920s and onwards felt a little loose and rushed.
June 30, 2024
A comprehensive review of finance through history and how it was instrumental in the development of civilization. Like the title lol. Surprisingly interesting despite the rather academic subject, it struck a refreshingly balanced view of finance as a technology without the accompanying baggage of the narratives that typically come with it.
December 13, 2017
Probably among the best books I have ever read. I would recommend it to anyone interested in getting an economic overview of history. The author has managed to make a relative dry and intense topic an easy read.
April 29, 2020
Really interesting but a bit dull and writes like an academic trying to write a readable book. Doesn't quite come off, but super interesting subject matter which is well marshalled and the author is clearly massively knowledgeable on.
August 10, 2021
Brilliant book on the history of the techniques and technology of finance, money, insurance, risk , loans over time. Limited attention to philosophical or ethical concerns of economics. Poverty, slavery and involuntary servitude.
December 28, 2021
Given the events of 2008 and its aftermath it is hard not to become cynical about finance's role in society. Goetzmann does a worthy attempt at explaining its continued (and historical!) relevance, and above all, its inevitability.
September 26, 2023
A really well written and researched account on the history of finance. Several parts of the book were especially enlightening, while others—I felt—would have profited from a little more attention by the author. All in all I would surely recommend this to anyone interested in the subject.
August 12, 2024
A very good book on finance history, though it might be a bit challenging for ESL readers due to its use of many new terms and long, complex sentences. However, if you're interested in learning more about English itself, this book could be suitable for you.
December 22, 2017
The contents are very interesting. Great insights I hope some chapters were easier to understand.
January 22, 2018
Best book ever for history + finance. It's amazing how intertwined global events are with finance. Those who don't know history will repeat the same mistakes. How true does this ring.
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