The End of Alchemy

Money, Banking, and the Future of the Global Economy

By: Mervyn King

Narrated by: Greg Wagland

Something is wrong with our banking system. We all sense that, but Mervyn King knows it firsthand; his 10 years at the helm of the Bank of England, including at the height of the financial crisis, revealed profound truths about the mechanisms of our capitalist society. In The End of Alchemy, he offers us an essential work about the history and future of money and banking, the keys to modern finance.

The Industrial Revolution built the foundation of our modern capitalist age. Yet the flowering of technological innovations during that dynamic period relied on the widespread adoption of two much older ideas: the creation of paper money and the invention of banks that issued credit. We take these systems for granted today, yet at their core both ideas were revolutionary and almost magical. Common paper became as precious as gold, and risky long-term loans were transformed into safe short-term bank deposits. As King argues, this is financial alchemy - the creation of extraordinary financial powers that defy reality and common sense. Faith in these powers has led to huge benefits; the liquidity they create has fueled economic growth for two centuries now. However, they have also produced an unending string of economic disasters, from hyperinflations to banking collapses to the recent global recession and current stagnation.

How do we reconcile the potent strengths of these ideas with their inherent weaknesses? King draws on his unique experience to present fresh interpretations of these economic forces and to point the way forward for the global economy. His bold solutions cut through current overstuffed and needlessly complex legislation to provide a clear path to durable prosperity and the end of overreliance on the alchemy of our financial ancestors.

©2016 Mervyn King (P)2016 Audible, Inc.

Critic reviews

"Mervyn King may well have written the most important book to come out of the financial crisis. Agree or disagree, King's visionary ideas deserve the attention of everyone from economics students to heads of state." (Lawrence H. Summers)

Insightful

I just wish our global politicians have the will and the courage to take action as outlined in this book.

better to read than to listen.

An interesting book which is spoilt by a somewhat mechanical treading. It sounded a little as if it was being read by Microsoft's Narrator.

a lot of standard economic platitudes

This the typical boiler plate and standard economic jibberish that obfuscates at least as much as it illuminates. Banking alchemy this, capitalism is the best bet that, increasing productivity is the key... etc etc. He never even touches upon the radical divergence between productivity and real wages that starts in 1971. We sure wouldn't want to acknowledge anything that shows we are full of bunk. None of propositions have aged well. Don't dispare though. Bitcoin fixes this.

must read

it's dense but so are the problems he's conveying. He does an especially good job of stating complicated financial ideas in layman's terms.

Excellent First Half

I have listened to dozens of books about financial companies, crises, economics, etc. The first half of this book was excellent. Toward the end he is trying to make some prescriptions, but I could not follow some of what he was suggesting. I would definitely recommend this book because it is from a British point of view and all the others I have heard are by American authors.