New Books in Finance

Think that Wall Street has nothing to do with the real economy? You are probably not alone in that regard. But it turns out, you are wrong. As William N. Goetzmann demonstrates in his Money Changes Everything: How Finance Made Civilization Possible (Princeton University Press, 2016), the tools of finance were as important for the rise of civilization as were the soldiers, castles and battles. Were it not for property contracts, agreements over imports and exports of grain, how to manage risk in increasingly complex economic ventures, etc we are still living in small agricultural communities eaking out an existence, and with no engagement of the wider world beyond the next village over.For finance professionals, Money Changes Everything offers an additional lesson: you have a history. People have been confronting for millenia the same intellectual and operational challenges that you face today. It might make sense to become familiar with how your predecessors in Ancient Sumeria and Rome and Qing Dynasty China and early modern Europe defined and worked out those same problems. You might be surprised how much you can learn from your predecessors.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

With free college in the national conversation, there’s been no better time for Daniel T. Kirsch’s new book Sold My Soul for a Student Loan: Higher Education and the Political Economy of the Future (Praeger, 2019). Kirsch teaches at California State University, Sacramento.American colleges and universities boasts an impressive legacy, but the price of admission for many is now endless debt. As Kirsch shows in the book, increasing educational indebtedness undermines the real value of higher education in US democracy. To help readers understand this dilemma, he examines how the student debt problem emerged and what the long-term effects of this might be. Sold My Soul for a Student Loan examines this vitally important issue from an unprecedented diversity of perspectives, focusing on the fact that student debt is hindering the ability of millions of people to enter the job market, the housing market, the consumer economy, and the political process. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

We’ve all heard that a picture is worth a thousand words, but what if we don’t understand what we’re looking at? Social media has made charts, infographics, and diagrams ubiquitous―and easier to share than ever. We associate charts with science and reason; the flashy visuals are both appealing and persuasive. Pie charts, maps, bar and line graphs, and scatter plots (to name a few) can better inform us, revealing patterns and trends hidden behind the numbers we encounter in our lives. In short, good charts make us smarter―if we know how to read them.However, they can also lead us astray. Charts lie in a variety of ways―displaying incomplete or inaccurate data, suggesting misleading patterns, and concealing uncertainty―or are frequently misunderstood, such as the confusing cone of uncertainty maps shown on TV every hurricane season. To make matters worse, many of us are ill-equipped to interpret the visuals that politicians, journalists, advertisers, and even our employers present each day, enabling bad actors to easily manipulate them to promote their own agendas.In How Charts Lie: Getting Smarter about Visual Information (W. W. Norton, 2019), data visualization expert Alberto Cairo teaches us to not only spot the lies in deceptive visuals, but also to take advantage of good ones to understand complex stories. Public conversations are increasingly propelled by numbers, and to make sense of them we must be able to decode and use visual information. By examining contemporary examples ranging from election-result infographics to global GDP maps and box-office record charts, How Charts Lie demystifies an essential new literacy, one that will make us better equipped to navigate our data-driven world. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Tired of the mechanical, narrowly rational human behavior of the Chicago school, but not exactly comforted by the emphasis on irrational activity in behavioral economics? So am I. Richard Robb, professor at Columbia and fund manager, offers a third way. In Willful: How We Choose What We Do (Yale University Press, 2019), Robb develops the notion of "for itself" behavior and decision making that can't be reduced to the algorithms of calculating machines, or even those that are adjusted for human foibles. Willful is not a comprehensive theory of decision making, but an effort to reinsert some element of humanity into explanations of how individuals and groups act. It is a work along the lines of "life is a journey, not a destination" but one well enriched by a wide reading of ancient and modern philosophers.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

As you may know, university presses publish a lot of good books. In fact, they publish thousands of them every year. They are different from most trade books in that most of them are what you might called "fundamental research." Their authors--dedicated researchers one and all--provide the scholarly stuff upon which many non-fiction trade books are based. So when you are reading, say, a popular history, you are often reading UP books at one remove. Of course, some UP books are also bestsellers, and they are all well written (and, I should say, thoroughly vetted thanks to the peer review system), but the greatest contribution of UPs is to provide a base of fundamental research to the public. And they do a great job of it.How do they do it? Today I talked to Kathryn Conrad, the president of the Association of University Presses, about the work of UPs, the challenges they face, and some terrific new directions they are going. We also talked about why, if you have a scholarly book in progress, you should talk to UP editors early and often. And she explains how! Listen in.Marshall Poe is the editor of the New Books Network. He can be reached at marshallpoe@gmail.com. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Whether man-made or naturally occurring, large-scale disasters can cause fatalities and injuries, devastate property and communities, savage the environment, impose significant financial burdens on individuals and firms, and test political leadership. Moreover, global challenges such as climate change and terrorism reveal the interdependent and interconnected nature of our current moment: what occurs in one nation or geographical region is likely to have effects across the globe. Our information age creates new and more integrated forms of communication that incur risks that are difficult to evaluate, let alone anticipate. All of this makes clear that innovative approaches to assessing and managing risk are urgently required.When catastrophic risk management was in its inception thirty years ago, scientists and engineers would provide estimates of the probability of specific types of accidents and their potential consequences. Economists would then propose risk management policies based on those experts' estimates with little thought as to how this data would be used by interested parties. Today, however, the disciplines of finance, geography, history, insurance, marketing, political science, sociology, and the decision sciences combine scientific knowledge on risk assessment with a better appreciation for the importance of improving individual and collective decision-making processes.The essays in The Future of Risk Management (University of Pennsylvania Press, 2019), edited by Howard Kunreuther, Robert J. Meyer, Erwann O. Michel-Kerjan, highlight past research, recent discoveries, and open questions written by leading thinkers in risk management and behavioral sciences. The Future of Risk Management provides scholars, businesses, civil servants, and the concerned public tools for making more informed decisions and developing long-term strategies for reducing future losses from potentially catastrophic events.Visit the University of Pennsylvania Press and enter promo code RISK50 during checkout to receive a 50% discount. Valid until November 15, 2019.Beth Windisch is a national security practitioner. You can tweet her @bethwindisch. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Culture matters. And a key element of culture is storytelling. These maxims can be accepted as given, except in modern economics, where the mechanistic framework of modern macroeconomic analysis allows just for formulas. Concerned about the relationship between unemployment levels and inflation? Here's the formula:  gW = gWT - f(U − U*) + λ·gPex    It's called the Phillips Curve. Your personal experience of unemployment or rising costs, the stories that you tell others or hear from them--about globalization, about jobs being exported, about "disintermediation" through technology, etc--these stories play no role in the economics taught in the classroom, but may have a significant impact on the decisions that you make and the life you may lead.Robert Shiller's new book, Narrative Economics: How Stories Go Viral and Drive Major Economic Events (Princeton, 2019) reminds economists and participants in the economy--that's all of us--of the importance of storytelling in explaining economic developments and explaining how people respond to events. Using the language and methodology of epidemiology, Shiller shows how various economic narratives have "gone viral" and had real economic impacts.   Narrative Economics builds on the advances of behavioral economics in recent decades by adding the core element of social activity--storytelling--to our understanding of economic change.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

“Free enterprise” is an everyday phrase that connotes an American common sense. It appears everywhere from political speeches to pop culture. And it is so central to the idea of the United States that some even labeled Christopher Columbus and the Pilgrims free enterprisers. In his new book, Free Enterprise: An American History (Yale University Press, 2019), Lawrence Glickman analyses that phrase’s historical meaning and shows how it became common sense.Glickman, a historian and the Stephen and Evalyn Milman Professor in American Studies at Cornell University, traces the phrase from its many 19th-century meanings, of which abolitionists wielded a dominant one (consider the word free), to its conservative reformulation in the 1920s and 30s. He shows how “free enterprise” became the rallying cry of the business community from the 1930s to the Powell Memo in the early 70s. This book is a whirlwind tour of a keyword that has had immense rhetorical power in modern American history and that scholars have yet to critically examine. Glickman’s book provides a compelling example of how historians can study the historical construction of common sense and is a welcome contribution to intellectual history, political history, and the history of capitalism.Dexter Fergie is a PhD student of US and global history at Northwestern University. He is currently researching the 20th-century geopolitical history of information and communications networks. He can be reached by email at dexter.fergie@u.northwestern.edu or on Twitter @DexterFergie. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

I spoke with James C. W. Ahiakpor, he is Professor Emeritus, Department of Economics, at California State University, East Bay, USA. We discussed his new book Macroeconomics without the Errors of Keynes: The Quantity Theory of Money, Saving, and Policy (Routledge, 2019) A provocative title for a very original book that is a critique not only of Keynes but also of some of his followers and his scholarly opponents. This is a sophisticated book and an erudite account and analysis of crucial debates in economics over the past 100 years.I asked what is the origin of the book and why he wrote a book 'against' J.M. Keynes. I also asked to locate Keynes and his relationship with classical economists. We then discussed why macroeconomics needs to be restored to its classical roots and what are the distortions that he attributes to Keynes. Finally we spoke about the implications of his book for contemporary economic and monetary policy debates after the great recession.Professor Ahiakpor argues that modern macroeconomics is in a stalemate, with seven schools of thought attempting to explain the workings of a monetary economy and to derive policies that promote economic growth with price-level stability. He attributes some of those problems to the errors of Keynes and to the reception of his work.The crucial errors made by Keynes are due to his reading of classical macroeconomics, in particular the classical Quantity Theory and the meaning of saving.In light of this, we discussed with James Ahiakpor how to solve those misunderstandings to achieve economic policies consistent with the promotion of the employment and economic growth that Keynes was seeking.This is an advanced book written for scholars of macroeconomics and history of economic thought and of course everybody interested in Keynes, the complexity of his work and possibly some oversights if you will agree with professor Ahiakpor.Andrea Bernardi is Senior Lecturer in Employment and Organization Studies at Oxford Brookes University in the UK. He holds a doctorate in Organization Theory from the University of Milan, Bicocca. He has held teaching and research positions in Italy, China and the UK. Among his research interests are the use of history in management studies, the co-operative sector, and Chinese co-operatives. His latest project is looking at health care in rural China. He is the co-convener of the EAEPE’s permanent track on Critical Management Studies. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Dividend investors are a small but dedicated band. Ten years into a stock market rally led by no or low-dividend paying companies, they still argue in favor of long-term business ownership rather than betting on near-term prices in the market. They still view a dividend as, in the words of Richard Russell, "a true return on investment. Everything else is hope and speculation." David Bahnsen is just such an investor. As CIO of the Bahnsen Group, he and his team manage $2 billion in assets. His new book, The Case for Dividend Growth: Investing in a Post-Crisis World (Post Hill Press, 2019) is a concise, powerful and up-to-date statement in favor or bringing a tangible cashflow sensibility to stock market investing. I am strongly biased in favor of his approach.  But even if you are not, The Case for Dividend Growth offers the valuable perspective on investing of a Registered Investment Advisor.  That is, everyday he has to deal with flesh and blood investors, not just utility maximizing Chicago robots. Bahnsen doesn't offer any hot stock tips, but NBN listeners will still benefit from listening to his passionately held views about how to navigate the uncertainty of the stock market.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance