Best Chronicle of Beginning of the Economic Era!
I finished listening to The Economists' Hour by Binyamin Appelbaum, narrated by Dan Bittner on my Audible app.
Try Audible and get it free: https://www.audible.in/pd/B07QD22FF4?source_code=APITMANDROIDAPP0824160004
In the beginning of the book, until chapter 5, it seemed to be a very weak effort to chronicle, what the author considers as the Economists' Hour.
From the 5th chapter he takes up more incisive look at the intervention of economists emphasising on successful qualification of many variables in the economy and the role of regulation. He, as is the case with most of the economists, struggles to explain Deregulation of Financial innovations and resultant Financial Meltdown of 2008. Rather rightly in August 2005, Dr. Raghuram Rajan (RRR) had raised concerns of destructive potential of the 'financial innovations', unleashed in the Deregulation era of Dr. Alan Greenspan. And RRR was chided ad hominem by Larry Summers as a Luddite!
In the conclusion, which is rather an afterword, the author delineates the developments initiated by the leaders, most of them ultra-nationalist, inward looking ... ones starting with Donald Trump all the way to Brazilian President, until 2018.
The book concludes with the author's amazement at the emergence of service economy and its probable & presumed deleterious effects on humanity.
In my view, we are at the cusp of understanding economics, as was the case with us as far as physical sciences at the beginning of Renaissance, we have barely quantified the elements of economics. We still lack competency, capability, tools & techniques to model, analyse and arrive at the right solutions!
My Notes
Part II
Chapter 5
Sony first blockbuster Product Transistor Radio came out because of AT&T
Sherman Act in 1890s
Law is consistent with economic activities
Economics offers Terra Firma for the decisions regarding economic activities.
Chapter 6:
Michael Levin? Luvine?
Airline regulation was started sponsored cartelization!
Alfred Kahn: Deregulation
Margaret Thatcher: privatisation, British Telecom scared public of electrocution
It's easy to forget that markets are human creations because humans have created so many markets!
Jean Tirole: Keep the investment sufficiently high and lease prices low.
Chapter 7:
John F Kennedy appointed Robert McNamara as Secretary of Defence, Assistant Defence Secretary: Charles J Hitch as Economist
Hitch started the trend of Cost Benefit Analysis in Government through his book: Budgeting of Defence in Nuclear Era... Led to cost benefit analysis of Defence forces. Russia made 10,000 copies of his book to train & help the Russian military!
Value of Life ... Insurance business started as betting on others' lives in Britain. ....
Chapter 8
Global trade, $ replaced gold as the international currency ... thanks to Brettenwood Agreement soon after WWII
Global Trade now @ irreversible 60% × 25% in 60s?
By 1969, West Germany alone could statue claim to all the gold in Fort Knox! ... and then came ... the floating exchange rate!
Camp David Meet to float $!
George Schultz: rare underrated Economist because of his better understanding of politics & economics. Henry Kissinger could appreciate his capability & competence to run the country! His memorable idea: Let economy have freedom to run on its own.
International Money Market!
Chapter 9
Though largely about Chile & Chicago Boys
Taiwan growth model: redistribution of land 37.5% rent, thrust on tactical exports
Yin insisted on planting new companies in open international markets after identifying the strategic benefits. The next leader also an electrical engineer by training identified for in economic theory in US on Economic competitive /comparative theory: the was no place for new enterprises (in my view, that's a byword fair innovation)! Evenground playing field & innovation are the keys for prosperity!
Chapter 10
Paper Fish: There are idiots; Look around!
The Knights In the Castle in the Wharfs! ... Bubble Trouble!
Alan Greenspan's ascent through New York? University Economics, Ayn Rand, Consulting company, PhD based on his articles, 2 Bakers! 1987 Chair Federal Reserve... RRR August 2005 questioned aboutv risk mitigation of the financial 'innovations', and invited ad hominem attack from Larry Summers for being a Luddite!
Icelanders dramatic rise and fall within a decade! Paper Fish!
