Yellen: The Trailblazing Economist Who Navigated an Era of Upheaval

by Jon Hilsenrath

Untitled has descriptive copy which is not yet available from the Publisher.

Genres: Biography, Economics, Nonfiction, Politics, History, Finance, Biography Memoir

400 pages, Hardcover

Published November 1, 2022

Reviews

[Jason Furman · Rating 5 out of 5]

A fantastic biography of an amazing economist and policymaker--also serving as a dual biography of Janet Yellen's Nobel-prize winning husband George Akerlof and their son the economist Robert Akerlof. Jon Hilsenrath's biography provides a marvelous blend of personal stories, economic ideas, broader economic context, and policymaking. The book gives you a window into the evolution of ideas, how those ideas do--and do not--interact with policymaking, and the broader economic context of the U.S. economy from the roaring 1990s through the financial crisis and then the COVID crisis. All of which is the result of work by humans--that Hilsenrath does a terrific job humanizing.

I knew the broad contours of the story already: growing up in Brooklyn, PhD under James Tobin at Yale, going to Harvard, not getting tenure, meeting George Akerlof and starting an incredibly fruitful intellectual partnership, then moving on to become Governor of the Federal Reserve, CEA Chair, President of the San Francisco Federal Reserve, Vice Chair of the Fed, Chair of the Fed, and now Treasury Secretary (writing even this long sentence is exhausting to me). I worked for Yellen in one of these roles (CEA Chair) and to some degree with her in others (the Fed). I also read and was excited about a number of the papers she wrote with Akerlof, and also Akerlof's other work (which gets a lot of attention in the book). And, full disclosure, I also talked to Hilsenrath for the book.

But the book still provided an enormous amount of vivid and insightful connections between all of these lines on a resume, especially the ferment in economics as economists trained and working at places like Harvard, Yale, MIT and Berkeley tried to develop ideas that in part responded to the Chicago critique of Keynesian economics and partly went beyond it by developing economic theories in which people had incomplete information or even, shudder the thought, feeling an acted like humans. Hilsenrath does a great job weaving the roles of many others into this intellectual history: including Stiglitz, Shiller, Summers and Shleifer to just list some of the economists beginning with the letter S who get mini bios and intellectual summaries.

It is also interesting to read about Akerlof developing theories on financial instability at the same time that Yellen is in charge of regulating some of the major banks--and how his ideas and her policymaking did and did not inform and agree with each other.

Overall, I loved the book--and I suspect that people who come to it with less background might get even more out of this insightful window into the interplay of policymaking and economic ideas.

[JJ Bellfrey · Rating 4 out of 5]

The book is well written, however the author spends more time on economic theory and the theorist who developed them than the subject who’s name is the title of the book. Janet Yellen seems to take a back seat in the book that is implied, by the title, to be about her.

I enjoyed diving into economy history and theories but was disappointed that more time was spent discussing Secretary Yellen’s husband and son.

[K. Travis · Rating 5 out of 5]

Book review time 📚: I brought with me to Egypt a great biography of Treasury Secretary Janet Yellen, the most powerful woman in American economic history. “Yellen” by Jon Hilsenrath, covers the ascendency of arguably the most pivotal woman in 20th century economics, as well as her deep relationships with other leading minds in her field. Yellen is the first person in U.S. history to have held in her career all three of the most powerful economic positions in America:

- Chair of the White House Council of Economic Advisers
- Chair of the Federal Reserve
- Secretary of the Treasury

In Janet Yellen, I am able to find a heroine that I can see myself in. She is a reserved, introverted and very bookish person who nevertheless can foster connections with others, have a good time and lead great institutions. We have a bias in American society towards extroverted leadership traits, so it was refreshing to be reminded of the power of the more introspective and reserved approach to life.

Until this book, I viewed the Federal Reserve as a dull, bureaucratic government agency that made my eyes glaze over. Reading “Yellen” schooled me in economic theory, financial markets, human behavior and office politics. This book gifted me with a new superpower to read the daily news and be able to see the financial undercurrents behind every headline, it is like I gained a sixth sense.

Our nation is incredibly lucky to have benefited from the leadership of a woman as monumental as Janet Yellen. She rightly so has always wanted to be respected for her work, not her gender, but I’d like to think anyone from an underrepresented group in a given profession can sometimes rely on their background to see what the majority cannot, or refuses to, acknowledge.

In thinking of the many doors Janet Yellen opened for women in economics, I can’t help but think about the future of the Federal Reserve. The field of economics can never be fully realized unless it makes space for the brightest economic minds in our country, who come from all different backgrounds. In 2017, I celebrated the appointment of Raphael Bostic as the Federal Reserve’s first African American and first openly gay branch president. His appointment was soon followed by another appointment of the Federal Reserve’s first gay woman (Mary Daly) to become a Federal Reserve Branch President.

Early in 2022, Reuters reported that, for the first time in American history, white men will account for fewer than half of the Fed's policymakers.

Currently, of all the highest officials in the Federal Reserve, 44% are women and 28% are people of color. This will serve the economics profession well, as some of our country’s worst economic moments came not as an inevitability, but rather from a lack of imagination and failure to listen to dissenting voices in economics. Anyone can get things wrong in economics, Janet Yellen would be the first to admit. The more diverse and varied voices we have in our nation’s highest positions of economic governance however, the better chance of getting things right more of the time. #TravisTurnsPages

[Annaliese Schreder · Rating 4 out of 5]

Ppl don’t know but her brother went to Hobart College. hip hip

[Glenn · Rating 4 out of 5]

First half was a tutorial on the great economists of the 20th century and reminder of how small that world is. Second half was a blow by blow of recent economic events, usually with a bit of a biased lens. I enjoyed the book, though it got to be a bit of a slog at the end and would primarily recommend it to either policy wonks or people who enjoy academic economics

[Jonathan Mckay · Rating 3 out of 5]

Surprisingly little about Yellen. Could have been titled: Akerlof: life, times and family.

[S · Rating 5 out of 5]

I adored this book. I’m deeply impressed by both the story but also the way it was told. The author managed to tell the tale about Yellen, the developments in the field of economics, and the economic and social events which has formed the American society during the last decades.

It is also a personal tale about the love story between Janet Yellen and George Akerlof, about their partnership and how all successful people needs a partner that supports them.

The book was also a refreshing exception to many others where the author facilitated the story but largely stayed out of it. The author told the what and how and left the options and interpretations to the reader. I got a better understanding of why we are where we are, the debates and decision that took us here and I am free to reflect on that myself.

I also appreciated the efficiency. In this book we get to meet a lot of people that play a role in the formation of events, some in more detail than others, and it felt that every person and description played a vital role in moving the story forward and explaining Janet Yellen.

On a personal note I’m also very impressed by the journey Yellen did, but I would recommend this book to anyone interested in economics or social history. I listened to the audio book and ordered the hardback once I finished because I know that I will reread this again.

[Joelle · Rating 3 out of 5]

It’s a good recap of the debate over the role of government in markets with some nice vignettes on Yellen’s economist peers. But there was not enough in here on Yellen and way too much time spent on her husband….It seems like the author didn’t have enough source material on Yellen herself. Maybe he didn’t interview her or others who know her for this book?

[Shannon Rivers · Rating 5 out of 5]

I learned so much about Yellen, economics, and leadership. Highly recommend.

[Henry Barry · Rating 4 out of 5]

A delightful look at the incredible career and life of Janet Yellen. This book did a great job of contextualizing all the economists that were Yellen’s peers, humanizing them and helping me understand their contributions and personalities. It does feel a little early to be writing this book since Yellen is still treasury secretary, making me wonder what else will eventually be captured about her career.

[Brendan Montesinos · Rating 5 out of 5]

9/10. Great biography, but is more of a historical analysis of the Fed/Economy for the duration of her career.

[Julia · Rating 5 out of 5]

An iconic woman and a good book (from which I learned a surprising amount about George Akerlof).

[Anabel · Rating 3 out of 5]

Yellen is an absolute icon to me. Her wisdom and ability to look forward is astounding. She is so very inspiring for women aspiring to be in positions of power. Two takeaways I had from this book is that even though this was a biography of Yellen, Hilsenrath spent a lot of time exploring her husband and other men in her life. This is a common theme when discussing women. Secondly, power has a lot to do with your relationships. Yellen was rubbing elbows with presidents for a very long time. Your network is so undoubtedly vital to reaching goals. (Listened on audiobook)

[Beatrice Holman · Rating 3 out of 5]

Didn’t get through much of this book… was more of an economic history of the USA (which don’t get me wrong is interesting) than a memoir of Yellen. Really struggled to want to read it after a full day of work and big brain thinking - is something I’ll come back to one day when I have the capacity to read it!

[Helen Wallace · Rating 4 out of 5]

Well written, interesting book, but I would have preferred more on Yellen.

[R.J. · Rating 5 out of 5]

Who is Janet Yellen? Most know her as the former Chair of the Fed and current Treasury Secretary. Before taking on those roles, she was Ben Bernanke’s Vice Chair at the Fed, President of the Federal Reserve Bank of San Francisco, Chair of the Council of Economic Advisors for Clinton, and a member of the Federal Reserve Board. No one else has served longer in senior economic advisory positions: not Bernanke, not Greenspan, not Larry Summers. She's the Grande Dame of economic policy and one of the greatest economists of her generation.

But this book is so much more than a biography of Yellen. It's a book about how economic thought has evolved and shaped policy over the last ~100 years. Hilsenrath decided that you can't understand Yellen and her contribution without some context. And he provides it.

Some of the key economic theories and debates reviewed:

Chapter 3 offers a brief history of the Great Depression, in particular its root causes and proposed solutions. It emphasizes how Keynes's thought, expressed in his magnum opus The General Theory of Employment, Interest, and Money (1936), reoriented economic thought by advocating for government intervention to manage demand, stimulate the economy, and combat unemployment. Keynes wrote the book on the way out of depressed equilibriums. His ideas laid the intellectual foundation of FDR’s New Deal as well modern fiscal policy.
Chapter 8 provides an overview of the origins of behavioral economics, which challenges traditional assumptions of rational actors and critiques the efficient market hypothesis. Central here is the work of Daniel Kahneman, Richard Thaler, and George Akerlof which altered the field (among certain economists) by accounting for psychological factors that affect decision-making.
Chapter 10 (as well as other places) explores the basic organizing structure and dual mandate of the Federal Reserve (the rule that requires the Fed to limit inflation and seek maximum employment). The book is, perhaps, at its best when discussing the Fed, likely owing to Hilsenrath’s expertise on the topic—his book on the Fed won a Pulitzer Prize.
Chapter 12 explains the strong evidence for the widespread consensus among economists on the benefits of international trade. The chapter revisits David Ricardo's theory of comparative advantage, which posits that countries benefit by specializing in the production of goods where they have a lower opportunity cost.


And so on.

It's a book for readers who want to understand both the intellectual landscape and practical challenges that define economic policymaking today.

There's lots to like about this book. Hilsenrath appropriately writes for the general audience, and presents economic ideas in an easy-to-digest format, alongside of the history of the people and events that gave birth to them. He also has a sense of good storytelling and what makes for surprising, interesting, or funny anecdotes. Yellen telling deadpan jokes while methodically, rhythmically reading carefully written scripts at Federal Reserve Board meetings; Greenspan’s sly comments on his intentional obfuscation and fear that he's being too clear. All of this is great fun and enjoyable to read.

Another other part I particularly enjoyed: the intellectual history of economics and connections between most of the economists you've ever heard of. George Akerlof, the Nobel prize-winning economist, is Janet Yellen's husband. Akerlof completed his dissertation at MIT under Robert Solow, at the same time Paul Samuelson taught there. Larry Summers, former Treasury Secretary and one-time President of Harvard, was Yellen's student. Ben Bernanke, Yellen’s predecessor at the Fed, did his dissertation under Stanley Fischer at MIT just 2 years after Paul Krugman. Fischer, former governor of the Bank of Israel, took over Yellen’s job as the Fed Board’s Vice Chair after she ascended the throne.

The book is not without its problems, of course. There are a number of incidents that are repeated, perhaps because Hilsenrath wanted to emphasize a point or because he intended chapters to be somewhat encapsulated (understandable outside of the context of the book as a whole). Either way, whenever I encounter a repetition, it felt like “Yeah, you said that already.”

Another issue: a substantial portion of the book veers off to provide accounts of various historical and contemporary economists. Some chapters feel like biographies of Yellen plus: plus Akerlof; Daniel Kahneman and Richard Thaler and behavioral economics; David Ricardo and the theory of comparative advantage; the Summers clan, etc. These are meant to add context and enrich Yellen's story, and I largely enjoyed them. But this structure means that significant space is devoted to topics not directly related to Yellen herself.

Yellen: The Trailblazing Economist Who Navigated an Era of Upheaval is both a portrait of one of the most influential economists of the last few decades and a report on the major economic crises of our time, including the Fed’s response of the 2008 financial crisis and the COVID-19 induced global recession of 2020.

It's also a highly accessible account of the evolution of modern economic thought and its influence on policymaking. Hilsenrath’s intellectual history spans from Ricardo’s comparative advantage theory and Keynes’s General Theory to the modernization of trade theory and behavioral economics. He also includes a number of biographical sketches of some of history's most famous economists.

For those who come to the book looking for a focused account of Yellen herself and her work, the economic history and numerous biographical sketches of other economists could feel like a distraction.

Yellen blurs the boundaries between biography, intellectual history, and economic policy reporting, making this book an excellent read for anyone seeking to understand how economic ideas shape the world.

[John McDonald · Rating 5 out of 5]

Jon Hilsenrath, in a clearly written, non-judgmental, and opinion-free biography, has given readers a "2-fer" in Yellen. The author not only gives us insight into Yellen's professional life and the economic views of her, her husband and her son, Robert Akerlof, also a well-regarded economist, but the competing economic views governing monetary policy from the 1950s through today.

This is one of the best books I have read this year, and only partly because it was so well-written and edited, and importantly for me, impartial in presenting the competing economic theories and biases of Yellen and other prominent economists, who include her husband George Akerlof, a titan of economic thought in his own right and Robert Shiller, friend and colleague of her husband.

There are two anecdotes Hilsenrath offers which give the reader insight into why Janet Yellen is not only an important economist of our times, but why she is an effective manager of monetary policy. It is the common practice that when Yellen and the Akerlof leave town together as a family, they pack 4 suitcases--one for Yellen, one for her husband, and one for Robby. The fourth suitcase contains the books they intend to read on vacation. During the vacation each separates to an individual room where they read, work on papers, or consider work that others have presented.

The second has to do with Yellen's air travel which, until she left government service and began earning large incomes from consulting and lecturing, never included first-class accommodation. Yellen would arrive at the airport about 3 hours early whether required to or not. Her goal was never to be in a position where she couldn't board the flight or miss it because in her calculations, both presented costly economic consequences. By arriving so early, she avoided those consequences and also was able to use the time before boarding to do what she was literally famous for doing while at the FED and at Treasury--prepare for meetings, speeches, and other duties and write and edit papers she was working on, and read the work of other economists and her staff.

Yellen famously offered her opinions as her data and studies directed. She did not assuage those opinions to satisfy differing opinions. She had the benefit of being married to a man who was a renowned economist in his own right who exchanged ideas with her and she with him and who was prepared to move about the country so that she could pursue her career. Both considered themselves simple people from simple backgrounds who growing up were able to acknowledge that economic decision-making was complex and not necessarily the way economics was written about and practiced. There was a human element that required investigation and consideration. Their son Robby benefited from their conversations together and from his separate conversations with Janet and his father when they went on long hikes.

This is the best book I have read this year (2023) so far this year and that is largely due to Hilsenrath's clear and unbiased writing. Had I not been channel surfing one night and landed on CSPAN where Hilsenrath was discussing this book, I likely would have missed reading this book.

I fully intend to do more channel-surfing in the future hoping for a similar, beneficial outcome.

[Hlsmlane · Rating 5 out of 5]

Hilsenrath’s approach is to use Yellen’s biography as a focal point for a broader discussion of the ups and downs of the US economy in the recent past. He also devotes a lot of attention to the work of George Akerlof, Yellen’s husband and a Nobel laureate. George’s career focused on theory; hers on practice. Together, their work exemplified the evolution of economic theory over the course of her career and the effects that economic theory has on government policy, which in turn can temper or exacerbate those ups and downs.

Some examples of these interactions that Hilsenrath provides include:

• The effect of political influence on Federal Reserve decisions in the 1970s which worsened inflation.
• The developing theory that economic actors are not always rational, either as individuals or groups, that displaced to “Chicago School” insistence that they are always rational.
• Lessons from the housing bubble, one of which was the failure of balkanized regulatory oversight.
• The theory that international trade always benefits both parties seemed to be a winner until jobs disappeared due to off-shoring.
• The jobless recovery following the 2008 financial meltdown broke a longstanding pattern of quick job recovery after a recession, and the Fed had to develop ad hoc policies in the absence of formal theory explaining such a condition.
• Oakun’s law held that employment increased as a function of growth in output, but this did not hold true during the last years of the Obama administration, nor did the rise in employment result in a corresponding rise of inflation. Economic theory did not provide a satisfactory framework for understanding this, so the Fed once again had to fly by the seat of their pants.

I suspect that the average US citizen has at least a passing acquaintance with Adam Smith’s “invisible hand” and some appreciation of supply and demand from personal experience. As the above examples suggest, there is a great deal more to the story. It is clear that a greater public understanding of economic theory and the effect of government policy on the economy would substantially improve political debate. Alas, economics is known as the “dismal science.” So it is unlikely this book will be as widely read as it deserves to be.

[Raghu · Rating 4 out of 5]

A timely highlighting of Janet Yellen, the barrier-breaking economist and banker who was a key proponent of the Fed's (now standard) "2% inflation target" mandate which is interestingly coming under scrutiny once again.

Mildly hagiographic, possibly due to access to the subject and immediacy of events (Yellen is still Treasury Secretary after her previous role as Fed Chair), but reasonably fair representation of Yellen's influential, yet under-the-radar career, alongside a history of the Fed and US monetary politics in general.

Additionally, the contrastive interleaving of the life, work, and intellectual style of her Nobel-winning husband, George Akerloff of asymmetric-information fame, gives some shape to Yellen's own labor-sided (unemployment-reducing) instincts for the 2% rule.

Her mantra of go-big-or-go-home interventions in the economy looks prescient during and after the 2008 recession but seems to also be coming under scrutiny after the recent large stimulus and subsequent inflation.

Overall a fascinating and complex topic of interest.

[Jeremy Swanson · Rating 3 out of 5]

5 stars for Janet Yellen, 3 stars for this mediocre bio. This felt slapped together and rushed. Maybe it's not possible to put together a comprehensive bio on someone still in a Cabinet position; maybe it just takes someone like Robert Caro to spend a decade writing it. The pre-2000 portion of the book was mostly a general overview of the history of American economic thought interwoven with a basic outline of JY's life. Pretty much everything post-2000 was presented like a both-sidesy WSJ article.

Towards the end, in reference to the American Rescue Plan, Hilsenrath says "History may yet prove that encouraging Biden to act big was among the biggest of [her] mistakes." No, I'm sorry, that's such a dumb take and doesn't give you credibility for being tough on the subject of the book. Yellen didn't create ARP and ARP didn't cause global inflation. The alternative, acting too small rather than too big, would have been demonstrably worse for economic performance.

JY will go down as the single greatest economic policymaker of our generation and she deserves a better biography. Hopefully after she's out of government that will be possible.

[RRinDC · Rating 5 out of 5]

Yellen is such a wonderful example for women who want to succeed in STEM subjects. It's almost a romance! Hilsenrath writes very clearly about economic policy and it's a good general US history of the past 100 years. He captures the flavor of the times. I generally agree with the theme of partnership between Yellen and Akerlof. She's clever enough that she would have risen without him, but that he was supportive and accommodating of her ambitions certainly contributed to her success. In prior years (Felix and Fanny Mendelssohn being a prime example where he published her work under his name), a man would have built his career on his wife's skills and taken the credit. That they both thrived is a testament to true partnership. I resented the minor tone that he was the more clever. Good ideas can stay in a book forever, but someone has to advance policy constructively and it takes a wider skill set to march change forward in a combative environment.

[Amy Gingrich · Rating 4 out of 5]

While the title of this book is name of the main character, this book is about more than just her. The book covers the history of economic theory as well as the careers of both Janet Yellen and her husband George Akerlof. Yellen broke through many glass ceilings in her field as a woman, and they are described with detail, from her education through her work in the Federal Reserve and the White House. Regardless of your politics, you will find this story interesting from an economic standpoint, as well as the story of her progress as an intellectual in the male-dominated field. The author gives facts in a neutral, unbiased reporting style rarely seen in today's media. Terminology and explanations about the varying economic theories through the US history are easy to understand, even if you never took an economics class.

[Natalie Silver · Rating 5 out of 5]

Back in my POEC thesis era for a bit!! This book was very good and it feels like I’ve read basically the whole genre at this point so that’s saying something. It was more like a history of political economy from the 1970s-present paying particular attention to Yellen but also talking about the most prominent economists of the generation, many of whom Yellen crossed paths with. I obviously have some criticism about how post-recovery inequality is discussed and the path to Trump’s election, but it wasn’t enough to take off a star. Also yay for women in econ we love Janet!! If you also have a niche passion for 2008 recession biographies, add this to your list!!

[Beth Anne · Rating 4 out of 5]

Truly enjoyed learning about the life of rock star long game playin, cool thinkin, runny-rad economist Janet Yellen. Wish in some ways the author had not chosen to structure the book so much along side her husband's career BUT he seems to have been a real mensch and very much a part of making her ascension to the top possible because he was a great, supportive intellectual ally and did equal parenting. WAY TO GO TEAM!

[Nate Campbell · Rating 4 out of 5]

Very good biography an a good an important economist. Does a great job using Yellen's life and career to walk through the major players in Economics of the last 50 years, and the important discussions and concepts. Highlights her family and husband George Akerlof really well. Great way to do an overview of America and Economics in recent history.

[patti · Rating 4 out of 5]

This book gives a good recap and explanation of the US economy over the years. I found the topic very interesting and I have a better understanding of today's issues. Janet Yelled is a brilliant economist who broke many glass ceilings but that was never her intention.

[Ziad Daoud · Rating 5 out of 5]

I like the book. It contains biography: of Yellen and Akerlof plus Tobin, Friedman, Samuelson, Summers, Sen, Arrow. It also discusses the economic debates of the last 50 years: Keynesians vs neo-classicists, crisis of 2008-09, inflation of 2021.

[Melita · Rating 4 out of 5]

This biography of Yellen came across as much more objective than Empathy Economics, presenting both praise and criticism of Yellen's policies through the years over her remarkable career. I liked it.

[Barbara P. · Rating 5 out of 5]

an every person guide to economics

Essential read to better understand the world we live in today. Courageous, brilliant woman. Interesting family dynamic. I enjoyed reading this and have several take-always.

[Dave]

I tried to get into this, as it seems that Yellen is an amazing and interesting person, but I was having trouble wading through all of the economic theories presented.
I did not read enough to give it a fair rating.