New Books in Economics

Property rights are important for economic exchange, but many governments don't protect them. Private market organizations can fill this gap by providing an institutional structure to enforce agreements, but with this power comes the ability to extort group members. Under what circumstances, then, will private organizations provide a stable environment for economic activity? Based on market case studies and a representative survey of traders in Lagos, Nigeria, this book argues that threats from the government can force an association to behave in ways that promote trade. The findings challenge the conventional wisdom that private good governance in developing countries thrives when the government keeps its hands off private group affairs. Instead, the author argues, leaders among traders behave in ways that promote trade primarily because of the threat of government intrusion.Shelby Grossman is a research scholar at the Stanford Internet Observatory. Dr. Grossman's primary research interests are in comparative politics and sub-Saharan Africa. She was previously an assistant professor of political science at the University of Memphis and a Postdoctoral Fellow at Stanford University’s Center on Democracy, Development, and the Rule of Law. Dr. Grossman earned her PhD in Government from Harvard University in 2016.Host Peter Lorentzen is an Associate Professor in the Department of Economics at the University of San Francisco, where he leads a new digital economy-focused Master's program in Applied Economics. His primary research interest is in the political economy of governance and development, particularly in China. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Is there an ideal portfolio of investment assets, one that perfectly balances risk and reward? In Pursuit of the Perfect Portfolio (Princeton UP, 2021) examines this question by profiling and interviewing ten of the most prominent figures in the finance world—Jack Bogle, Charley Ellis, Gene Fama, Marty Leibowitz, Harry Markowitz, Bob Merton, Myron Scholes, Bill Sharpe, Bob Shiller, and Jeremy Siegel. We learn about the personal and intellectual journeys of these luminaries—which include six Nobel Laureates and a trailblazer in mutual funds—and their most innovative contributions. In the process, we come to understand how the science of modern investing came to be. Each of these finance greats discusses their idea of a perfect portfolio, offering invaluable insights to today’s investors.Inspiring such monikers as the Bond Guru, Wall Street’s Wisest Man, and the Wizard of Wharton, these pioneers of investment management provide candid perspectives, both expected and surprising, on a vast array of investment topics—effective diversification, passive versus active investment, security selection and market timing, foreign versus domestic investments, derivative securities, nontraditional assets, irrational investing, and so much more. While the perfect portfolio is ultimately a moving target based on individual age and stage in life, market conditions, and short- and long-term goals, the fundamental principles for success remain constant.Aimed at novice and professional investors alike, In Pursuit of the Perfect Portfolio is a compendium of financial wisdom that no market enthusiast will want to be without.Marshall Poe is the founder and editor of the New Books Network. He can be reached at marshallpoe@newbooksnetwork.com. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Development economists have been doing intensive research in recent years on conditional cash transfer programs as a tool to help get people out of poverty. Meanwhile in the US there has been a lot of talk about Universal Basic Income as a remedy for inequality and social disclocations. On paper, China’s Minimum Livelihood Guarantee, or Dibao, sounds a lot like Universal Basic Income. Jennifer Pan shows that this tool of poverty alleviation has instead been turned into a tool of surveillance and oppression. Ultimately, this focus on “stability” may backfire. Pan’s book Welfare for Autocrats: How Social Assistance in China Cares for Its Rulers (Oxford UP, 2020) offers insights gleaned from a remarkable combination of in-person field interviews, surveys, online field experiments, and data generated from automated analyses of massive numbers of government documents and social media posts.Jennifer Pan is an Assistant Professor of Communication, and an Assistant Professor, by courtesy, of Political Science and Sociology at Stanford University. She conducts research at the intersection of political communication and authoritarian politics, showing how authoritarian governments try to control society, how the public responds, and when and why each is successful.Host Peter Lorentzen is an Associate Professor in the Department of Economics at the University of San Francisco, where he leads a new digital economy-focused Master's program in Applied Economics. His research examines the political economy of governance and development in China. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In July 2021, nine summers after its then president saved the euro with three choice words (“whatever it takes”), the European Central Bank published the results of a thoroughgoing review of its strategy.A policy framework built for times when inflation posed a modest upside challenge had coped – but only just – with successive financial, sovereign-debt, banking and health crises that threatened chronically weak inflation at best and deflation at worst.Essential to the review was research conducted to mark the 20th anniversary of the ECB in 2019 and now updated and published as a book: Monetary Policy in Times of Crisis: A Tale of Two Decades of the European Central Bank (Oxford UP, 2021) by Massimo Rostagno, Carlo Altavilla, Giacomo Carboni, Wolfgang Lemke, Roberto Motto, Arthur Saint Guilhem and Jonathan Yiangou.This exhaustive analytical history concludes that the ECB operated two policy regimes – one from 1999 to 2012 and a second crisis-informed strategy until the narrative ends before the onset of the pandemic. With its strategic review over, the history lessons from this book will be an essential guide to ECB thinking as it prepares a slow and careful unwinding of its emergency policy settings.Massimo Rostagno has been the ECB’s Director General Monetary Policy since August 2017 and has worked at the central bank since 1998. He has served as head of the Monetary Policy Strategy Division and Director Monetary Policy and, before that, worked at the Banca d’Italia and the International Monetary Fund. He holds a PhD in economics from the University of California, Los Angeles. (Any views expressed are personal and not necessarily those of the ECB).*The author's own book recommendations are Capital in the Twenty-First Century by Thomas Piketty (Harvard University Press, 2014) and The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era by Barry Eichengreen (OUP USA, 2018).Tim Gwynn Jones is an economic and political-risk analyst at Medley Global (Energy Aspects). Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

David Chard, the President of Wheelock College in Boston, MA, discusses the process of merging Wheelock successfully into Boston University to become the BU Wheelock College of Education and Human Development. His book, When Colleges Close: Leading in a Time of Crisis (Johns Hopkins University Press, 2020), written with Wheelock’s VPAA Mary Churchill, provides the most detailed guide available on each step involved in merging a struggling small college into a large university in a way that preserve and amplified its mission and impact. Chard shares what led them to write the book so soon after completing this painful process, and many additional insights about what goes into a successful merger.David Finegold is the president of Chatham University. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Gramsci’s concept of hegemony is often invoked, but usually as a means of cultural critique and analysis. However, my guest Lorenzo Fusaro argues in his recent book Crises and Hegemonic Transitions: From Gramsci's Quaderni to the Contemporary World Economy (Haymarket Books, 2020) that Gramsci’s work is permeated by Marx’s economic critique and his theories of value. Split into two parts, the book is both a critical rereading of Gramsci, followed by a rereading of the last century of economic and political developments. The first half of the book involves a careful rereading of key concepts in Gramsci’s Prison Notebooks, rethinking concepts such as hegemony as being more closely related to the base, instead of simply being superstructural description. Hegemony is not above and beyond economic dynamics and antagonisms, but emerges from them and changes alongside them. This allows for a broadening of the theory conceptually, and also allows him to apply it to international relations, instead of being confined to a particular state. The second half of the book then traces the economic history of the 20th century, starting with the rise of the United States in the international scene in the 1920’s, and following through to its eventual unraveling on the world stage in the present day. And even though the book was first published in 2018, at the end Fusaro offered some speculations on how this reworked theory of hegemony might help us think about the recent COVID crisis and its aftermath. Synthesizing theory, history and economics, this is a book that offers a powerful punch, and will reward readers from a number of different angles, and offers some dynamic theoretical resources for understanding our current crisis, and what might be just around the corner. The book was first published by Brill as part of the Historical Materialism book series, and is now available in paperback from Haymarket.Lorenzo Fusaro received his PhD in international political economy at King's College, London. He is an associate professor of political economy at the Universidad Autonoma Metropolitana in Mexico, and is also one of the editors of Revisiting Gramsci’s Laboratory. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Once described as a “German oddity”†, Ordoliberalism was one of a number of new liberalisms that emerged from the political maelstrom of the interwar period. But, unlike the other neoliberal splinters, Ordoliberalism – founded at the University of Freiburg by economist Walter Eucken and jurist Franz Böhm – was quickly tested in the real world.The West Germany rebuilt out of the ashes of war was founded on its principles: rules-based economics, independent agencies protected from politics and the state as arbiter. The country's recovery and successful reunification were a testament to Ordoliberalism’s effectiveness but, as the European Community became a union and created the euro, its other members were keener to import the success than the rules. When crisis struck from 2008, the EU's architecture was severely stress-tested and remains under strain in the wake of the coronavirus pandemic.Is the long EU political crisis due to Ordoliberalism or due to its non-implementation? Can and should Ordoliberalism adapt and survive? These are some of the questions addressed in Ordoliberalism and European Economic Policy: Between Realpolitik and Economic Utopia (Routledge paperback, 2021) co-edited by Malte Dold and Tim Krieger. Malte Dold is a Freiburg university graduate who now an assistant professor of economics at Pomona College in California, and Tim Krieger is Freiburg's Wilfried Guth professor of constitutional political economy.*As their book recommendations, Tim Krieger chose Conservative Liberalism, Ordo-liberalism, and the State: Disciplining Democracy and the Market by Kenneth Dyson (OUP Oxford, 2021) and Exit Left: Markets and Mobility in Republican Thought by Robert S. Taylor (OUP Oxford, 2017); and Malte Dold chose The Narrow Corridor: How Nations Struggle for Liberty by Daron Acemoglu and James A. Robinson (Penguin, 2020) and The Idea of Justice by Amartya Sen (Penguin, 2010).Tim Gwynn Jones is an economic and political-risk analyst at Medley Global Advisors (Energy Aspects).†Ordoliberalism: A German oddity? ed. Thorsten Beck and Hans-Helmut Kotz (CEPR Press 2017). Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

How Social Science Creates the World is based on an in-depth filmed conversation between Howard Burton and UC Berkeley political scientist Professor Mark Bevir. Mark Bevir is an internationally acclaimed expert in the theory of governance. This thought-provoking conversation explores how attempts to shoehorn political science into a natural science framework commonly fail and how correctly appreciating what social science is and does has a direct bearing on our everyday social lives. By adopting the false belief that the social world is composed of some unchanging, fundamental entities on par with atoms or molecules—be they markets or classes or what have you—we will have no means of recognizing, or even describing, what happens when circumstances change and a new social dynamic is created.Howard Burton is the founder of the Ideas Roadshow, Ideas on Film and host of the Ideas Roadshow Podcast. He can be reached at howard@ideasroadshow.com. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Americans rely on credit to provide for their food, clothing, shelter, transportation, and other daily necessities and the 2008 financial crisis demonstrated how they relied on private financial institutions that encouraged risky lending practices. Yet federal policy makers did little to change their approach to curbing risky lending practices and there was little political response from consumers or consumer groups. How can political scientists explain the behavior of government actors, interest groups, or borrowers? In Democracy Declined: The Failed Politics of Consumer Financial Protection (U Chicago Press, 2020), Dr. SoRelle insists that the expansion of consumer financing -- in terms of access and economic significance -- is fundamentally a political issue with serious political and economic consequences. She offers a policy-centered explanation sensitive to what she calls regulatory feedback effects that shape the behavior of bureaucrats, consumer advocates, and ordinary Americans. Individuals did not fail – they responded to systemic incentives and goals. SoRelle explains how angry borrowers' experiences with nearly invisible government policies teach them to focus their attention primarily on banks and lenders instead of demanding that lawmakers address predatory behavior. As a result, advocacy groups have been mostly unsuccessful in mobilizing borrowers in support of stronger consumer financial protections. The absence of safeguards on consumer financing is particularly dangerous because the consequences extend well beyond harm to individuals--they threaten the stability of entire economies. In addition to explaining the political dynamics of failure, SoRelle identifies possible remedies. This multi-method scholarship contributes to our understanding of policy feedback in an important and timely case study.Dr. Mallory E. SoRelle is an assistant professor at the Sanford School of Public Policy at Duke University. Her research interrogates how public policies are produced by, and how they reproduce, socioeconomic and political inequality in the United States. She has worked in both electoral politics and consumer advocacy. The podcast drops the week of the 10th anniversary of the Consumer Financial Protection Bureau.Susan Liebell is an associate professor of political science at Saint Joseph’s University in Philadelphia. Why Diehard Originalists Aren’t Really Originalists appeared in the Washington Post’s Monkey Cage and “Sensitive Places: Originalism, Gender, and the Myth Self-Defense in District of Columbia v. Heller” can be found in July 2021’s Polity. Email her comments at sliebell@sju.edu or tweet to @SusanLiebell. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In The Economics of Sustainable Food: Smart Policies for Health and the Planet (Island Press, 2021), Dr. Nicoletta Batini, and co-authors, unpack the true cost of food production. While the Green Revolution served a purpose, Dr. Batini makes the case that the industrial food complex continues to cause tremendous global economic losses in terms of malnutrition, diseases, and environmental degradation. To ensure we do not exceed the 1.5oC target, the book offers the Great Food Transformation (GFT) as a solution. The GFT entails, (1) halving animal-based food production and increasing plant-based production, (2) shifting to organic, regenerative farming, and (3) rewilding, reforesting, and afforesting land. In this interview, Dr. Batini discusses the economics and policy mechanisms to make the GFT possible. Some of the mechanisms discussed include taxes, labor market reform, alongside regulation in cases where market incentives are unlikely to work or to work fast enough. We discuss the important differences in the GFT between “advanced economies” and “less-advanced economies,” with case studies that highlight successes in both. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics