Tag Archives: Joseph E. Stiglitz

My 2017 reading list

In this post I wanted to share the list of books I read along the year (1) with a small comment for each one and links to some Twitter threads where I shared some passages that caught my attention while reading the book. I have also included a small rating from one to three “+” depending on how much do I recommend its reading:

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  1. Iliad” (by Homer) (+++): arguably the first book of Western civilization, I took on reading after having discussed about it and the Odyssey with a friend during 2016 summer holidays. The Iliad is widely seen as the more epic of the book of the two. I would say it is harsher. It is centered in the battle of Troy, fought around the XII century BC between a coalition of Greek armies led by Agamemnon king of Mycenae and Troy, led by Hector. The war features warriors the size of Achilles, Odysseus, Ajax, Menelaus… the origin of the war is the kidnapping of Helen, wife of Menelaus, by Paris, who takes her to Troy, against which the Greek armies fight in order to bring her back. The description of the fights does not spare any bloody detail, reaches at times the point of recreation in the violence and brutality of the characters. Another interesting point to note are the Homeric epithets; every single time the name of character is referred to a series of epithets will be quoted to describe him, such  as “swift-footed” Achilles.
  2. The dragons of Eden” (by Carl Sagan) (++): I was not yet born when the series Cosmos was released and became so popular in 1980, but I had read often about the character and the importance of Sagan as a outreach scientist. I bought this book, on the evolution of human intelligence, about a decade ago and took on it this year after having read “Exploradores: La historia del yacimiento de Atapuerca” by one of the lead researchers of Atapuerca (José María Bermúdez de Castro) last year. The book is read very easily and draws from different disciplines in order to provide examples, outcomes from scientific studies and his vision on evolution. [I leave here a Twitter thread with some passages that caught my attention while reading the book]
  3. Las cuentas y los cuentos de la independencia” (by J. Borrell and J. Llorach) (+++): this short book by the economists Joan Llorach and Josep Borrell (who among other posts was the Spanish minister of Public Works and Transport in the 1990s) originated from an article they wrote for a news paper refuting some of the populist arguments often used by separatist leaders in Catalonia (note: both writers are Catalan themselves). The main point of the book goes around the different calculations methods for what is called the fiscal balance, pointing to the distortions played by separatists. Before that point is tackled many other mantras are dismantled, such as the purported calculations of fiscal balances in Germany and the limits to them often cited by separatists, for which the authors of the book made a thorough research including cross checking with German economics professors and the German embassy just to find out that the whole story is based on nothing, pure invention, hence the title of the book (“las cuentas y los cuentos“, as in the “the calculations and the stories”). [Twitter thread]
  4. The Right Stuff” (by Tom Wolfe) (+++): released in 1979 and awarded the US National Book Award for Nonfiction, this book portrays the lives, the selection process, the training and mission of the Mercury Seven. The book was later adapted to the cinema in a movie by the same title. The movie and the book are classic of aerospace literature and cinema. The images of the mercury seven in their silver space suits or their orange fighter pilot suits are part of popular culture. The book goes into the struggles and ego disputes among the different astronauts and between them and Air Force test pilots, including Chuck Yeager whose auto biography I had read in 2016, thus letting me see that episode from both sides. A definite must read. [Twitter thread]
  5. Odyssey” (by Homer) (+++): this book is partly the continuation of the Iliad, as in it Homer describes the return trip of Odysseus from Troy to Ithaca, his kingdom, where is wife Penelope and son Telemachus suffer for years the absence of the king. This book is more of an adventure book than the Iliad, and some of the passages are quite known such as those of the cyclops or the sirens. [Twitter thread]
  6. The Hitchhiker’s Guide to the Galaxy” (by Douglas Adams) (+): the novel is part of a comedy science fiction series released in 1979, originated from radio broadcasts and later taken to TV. I read it as had seen it recommended by Elon Musk a couple of times. The book has some hilarious points and fine criticisms, but other than that I thought it was quite overrated. [Twitter thread]
  7. Oresteia (Agamemnon, The Libation Bearers (Choephoroi), The Eumenides)” (by Aeschylus) (+): Aeschylus is seen as the father of tragedy. The Oresteia is a trilogy first represented at a festival in 458 BC. The play plots several tragic events: the murder of Agamemnon by Clytaemnestra, the murder of Clytaemnestra by Orestes, the trial of Orestes, the end of the curse on the House of Atreus and pacification of the Erinyes. [Twitter thread]
  8. La Bete humaine” (by Emile Zola) (++): published in 1890, this novel by Zola caused a great impact in the French society by its brutality: murder, suicides, abuses… the novel is centered around the rail company and the line Paris – Le Havre, and the plot relates the lives of the president, some workers and their relatives.  [Twitter thread]
  9. 1984” (by George Orwell) (++): published in 1949, the influence of this novel cannot be overstated. It coined terms and introduced figures widely used today such as Big Brother, Newspeak, Thought Police, thoughtcrime… even if I found some passages of the book rather tedious, it is a must read, a wake up call, a reminder of always having to be alert in the defence of individual rights. [Twitter thread]
  10. Puro Fútbol” (by Roberto Fontanarrosa) (++): In the 90s I used to read some newspaper articles of former football player and coach Jorge Valdano, in some of them he would refer to stories from the writer Fontanarrosa. Since then, I had heard about those stories some other times. In April we visited Argentina and we went to a bookshop to enjoy going through book stands, when I found his name in bookshelf I picked one of his books to read a few of his stories. The book is a compilation short stories of Argentinean football. They are fictional stories which feature amateur players and aficionados, either playing football, remembering memorable matches or attending events. I especially liked its fresh and down to earth language, which very easy transmit that for some people football is much more than sport. [Twitter thread]
  11. El Tango” (by Jorge Luis Borges) (+++): during a trip to Argentina I bought 3 books of Borges to approach the author. This was the first one I read. Rather than a book written by him, it is the transcription written in 2016 of a series of lectures Borges gave in 1965 around Tango, its origins, meaning, etc. I loved the book, as it gave me some insight into Argentinean life at the beginning of the XX century, the dance itself, its evolution from a dance of locals of dubious reputation to a dance more than socially accepted. Living in Toulouse, I loved to learn that in fact Carlos Gardel might have been a Frenchman by the name Charles Gardés born in the same neighborhood of Saint Cyprien (Toulouse) where I used to live when I came to France. [Twitter thread]
  12. Ficciones” (by Jorge Luis Borges) (+): published in 1944, the book is a compilation of about 20 short stories. With them Borges plays with different concepts, styles and themes. I saw that it has a great reception by critics, I do not share it.
  13. Dracula” (by Bram Stoker) (++): the count of Dracula and vampires are part of our popular culture. There are countless films, books, comics, plays, that include such characters. This book, published in 1897, set a framework for that popular culture: the prominent teeth, the biting and sucking of blood, the coming out at night, the counter measures, etc. The story is made of a series of letters, entries into the diaries of some of the characters and press articles. I liked the originality of such approach, although in my view it lacked some rhythm at some points. [Twitter thread]
  14. Waiting for Godot” (by Samuel Beckett) (+): I got some books from 1969 Literature Nobel prize winner, the Irish Samuel Beckett, as part of my Irish literature immersion following my 2016 trip to the island. Waiting for Godot is theater play that portrays two characters, Vladimir and Estragon, who wait for a third one, Godot, who never arrives. Meanwhile they engage in a series of discussions, absurd at times, comical at others, or even tedious. I have read reviews of the play stating that it is one the most significant play in English language of the XX century. I found it rather absurd and wouldn’t recommend it, other than for the humorous note of reading once and again the gag “We can’t / Why not? / We’re waiting for Godot”. [Twitter thread]
  15. The travels of Gulliver…”  (by Jonathan Swift) (+++): during a trip to Ireland in 2016, I found out that Jonathan Swift had been about everything in Ireland, I thus decided to take on this classic book, out of which some stories we all have heard of at some point or another, such as the trip to Lilliput. Written in 1726, the book covers several trips of Gulliver, to nations previously unknown to him, where he discovers different civilizations (Lilliputians, giants, a civilization on a flying island) with their own ways of thinking. These travels offer the author situations to explain different points of view from menial subjects to more profound ones, such as fraud, the importance of rewarding good behavior, the importance of attitude over skills, astronomy, the influence of lawyers, taxes… up to a rather harsh criticism on human kind in comparison to the honesty of horses. A classic definitely worth reading. [Twitter thread]
  16. The Price of Inequality” (by Joseph E. Stiglitz) (+++): I had bought this book from the 2001 Nobel prize in economics to my father a couple of years ago. Once he finished it, I grabbed this boomerang gift so I could read it too. The book is a review of income inequality in the USA, the policies that have been taken in the last decades and that have contributed to the increasing of that inequality and its consequences. Criticism of austerity, defence of higher taxes, denouncing the double standards, the fine print of trade agreements, the need of labor unions, globalization and rent seeking are some of the topics discussed in the book. [Twitter thread]
  17. Out of Africa” (Karen Blixen) (++): I visited my sister in Denmark in the summer of 2016 and it was in that trip that I got acquainted with Karen Blixen (not having yet seen the movie based on the book). I bought the book and put it on the reading list. Written in 1937, the book is a passionate story of a farm life in Africa, lovely at times, with some descriptions of landscapes, relationships, the sounds of nature, the animals in the safaris, the flights in the Moth of her friend Denys…, that brings you back to a time and a world that most probably, for good and bad, we will never see again. A melancholic read at times, especially at the end, when the author describes when she was already closing her experience in Kenya. [Twitter thread]
  18. Ajax“, “The Trachiniae“, “Antigone“, “Oedipus Rex” (by Sophocles) (++): Sophocles was one of the great tragedians in ancient Greece, following Aeschylus, he lived in the 5th century BC. The book I read is a compilation of the four plays mentioned above. The plays treat the death of Ajax, of Heracles, of Antigone and the self-blinding of Oedipus, this last one considered to be the masterpiece of Greek tragedy. [Twitter thread]
  19. La tregua” (by Mario Benedetti) (++): written in 1959, this novel by the Uruguayan writer, long time based in Buenos Aires, tells the story of the widower Martín Santomé who falls in love with a much younger female work colleague just prior to his retirement. The book is written in the form of entries into the diary of Martin. [Twitter thread]
  20. El libro de arena” (by Jorge Luis Borges) (+): this book, published in 1975, is a compilation of 13 short stories. Together with “Ficciones“, which I had read a few months before (above), it is considered one of the masterpieces of Borges. Other than some pills of sharp criticism on fairmindedness, self described liberal free thinkers, disdain for science, culture and history, I did not like much this book either. [Twitter thread]
  21. Les Misérables” (by Victor Hugo) (+++): it took over 15 years to Victor Hugo to write Les Misérables, a 1,900-page (in the French version) historical novel considered one of the greatest novels of the 19th century if not of all time. Hugo centers the story around Jean Valjean, who was initially convicted for stealing bread but after a series of escape attempts he ends up serving 19 years. Valjean will be transformed into a benefactor who is always chased by his past and who follows an internal struggle between justice and doing good. Valjean will take as personal mission to save Cosette, a young orphan girl. The book includes some other central characters such as Fantine, Eponine, Marius, Gavroche or Javert, and Hugo will use them and the historical events hapenning at the time around which the novel is staged (1820s and 30s) to discuss about several subjects such as monarchy, social justice, criminal justice, romance, family, French politics…  It took me about 10 weeks and around 70 hours to read it, the longest book I have read so far, but definitely worth it, especially the last about 300 pages. [Twitter thread]
  22. L’Écoles des femmes” (by Molière) (+++): this play, published in 1662, portrays a comedy around Arnolphe, Horace and Agnès, where the first has been isolating and “educating” Agnès to marry her and Horace is her lover. Through candid and innocent dialogues between Horace and Arnolphe and Agnès and Arnolphe, the latter will become aware of the affair going on and the failure of his strategy. A great comedy and criticism of the society of his time in its view of women rights. [Twitter thread]
  23. Social Choice and Individual Values” (by Kenneth J. Arrow) (+): one of the 1972 Economics Nobel prize winner, Kenneth Arrow passed away in February 2017. At that point I thought of reading this book, a 100-page essay in which he derives his “General Possibility Theorem”, known as Arrow’s impossibility theorem or voting paradox: “If there are at least three alternatives which the members of the society are free to order in any way, then every social welfare function (…) must be either imposed or dictatorial”. The exposition of his social choice theory, the implications of the theorem and the particular cases when some conditions are quite interesting. However, the book is a plagued with demonstrations with which he arrives to his theorem; a tough read if not on student mode. [Twitter thread]
  24. Le Tartuffe ou L’imposteur” (by Molière) (+++): the first version of this play appeared in 1664, and after some struggles with censorship it reappeared in its final version in 1669. In this comedy, Molière criticizes the hypocrisy and trickery often hidden behind a pious appearance. In the plot, Tartuffe is an impostor that passes by a fervor devotee who uses religion to trick Orgon, to the point of getting his state and at the brink of getting his wife. A great pointed comedy. [Twitter thread]
  25. L’Avare” (by Molière) (+++): written in 1668, in this great comedy the author takes on greed and its influence on love between parents and children, jealousy, marriage arrangements based on dowries…  [Twitter thread]

During this year again, I have been able to read at a higher pace than years ago, before I adopted a more rigorous approach following these two tips:

  • a blog post from Farnam Street blog “Just Twenty-Five Pages a Day“, which was published well after I had adopted such an approach to reading but captures it very well,
  • the Wikipedia article about the Pomodoro Technique, which enables you to efficiently use the last hours of the day.

I wish you all very interesting reads in 2018!

(1) You can find here: my 2012 reading list201320142015 and 2016 ones.

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My 2014 reading list

In this post I wanted to share the list of books I read along the year with a small comment for each one, the link to a post about the book in the blog (when applicable), links to Amazon (in case you want to get them) and to the authors. I have also included a small rating from one to three “+” depending on how much do I recommend its reading:

  1. Seeking Wisdom: From Darwin to Munger(by Peter Bevelin) (++): this book is an interesting guide into how to improve our thinking process. It starts with reviewing what influences our thinking, then analyses misjudgments and provides some guidelines for better thinking. It draws heavily on quotations and passages from other authors such as Confucius, Charlie Munger, Charles Darwin, Warren Buffett, Cialdini, Kahneman… therefore if one has read one or several of their books (Thinking Fast and Slow, Influence, letters to the shareholders of Berkshire Hathaway, On the Origin of Species, Poor Charlie’s Almanack…) this book may seem redundant. One thing I liked about the book was the offering of key concepts after each chapter and its appendix on checklists.
  2. What management is (by Joan Magretta) (++): a brief book covering the different aspects of management (from value creation to managing people, business models, strategy, execution) in a very concise way though full of very vivid examples from different companies. While reading the book I marked dozens of passages, and I included one post in the blog about one of the anecdotes related to the Ford Pinto.
  3. The Early History of the Airplane (by Orville and Wilbur Wright) (++): it is a short book or rather a compilation of 3 articles by the brothers (30 pages in the e-reader version I used). The 3 articles are: The Wright Brothers’ Aeroplane (by Orville and Wilbur Wright), How We Made the First Flight (by Orville Wright) and Some Aeronautical Experiments (by Wilbur Wright). In these articles they provide some insight into how they became attracted to the problem of heavier-than-air self-powered controlled flight, what were the difficulties they faced, what schools of thought there were at the moment, who influenced them, what results and experiments from others they relied upon, the experiments they performed, the results at which they arrived… and, yes, they describe their first and subsequent flights. I wrote a post review the book, find it here.
  4. The Racketeer (by John Grisham) (++): in this novel the author has Malcolm Bannister, an attorney half way through his 10-year prison term for racketeering, maneuvering his way out of prison by negotiating with the FBI and helping to solve a crime investigation gone nowhere.
  5. Micro (by Michael Crichton and completed by Richard Preston) (+): the novel is about a group of graduate students seduced by Nanigen, scientific research company, to join them in Hawaii. The story develops in to a hunt of the students in the jungle as they had been miniaturized by the latest technology developed by the company. To my taste, a bit too much on the fantasy side.
  6. Hot, Flat, and Crowded(by Thomas Friedman ) (+++):  In this book, Friedman claims that as we are entering the “Energy-Climate Era” the world is getting hot (global warming), flat and crowded (soaring population growth), and clear action needs to be taken to address these issues. Government need to establish a clear regulatory framework, clear price signals to establish a market in which companies can innovate to solve the problems at hand. The author included in the book dozens of references, quotes from conversations, excerpts of speeches from leading figures, and several examples. I wrote a post review the book, find it here.
  7. The Roaring Nineties(by Joseph E. Stiglitz ) (+++): Stiglitz wrote The Roaring Nineties in 2003 to offer an insider’s view of economic policy making and the economic boom and bust of the nineties. Stiglitz is frank in admitting that all the focus that the Clinton administration had at the beginning of the term in passing laws to improve the living of the disfavored ones was suddenly put aside due to the mantra of deficit reduction. He openly regrets it several times throughout the book and offers some criticism on the administration he took part in and others before and after. Especially Reagan’s and Bush II’s. I wrote a post review the book, find it here.
  8. El amor en los tiempos del cólera (by Gabriel García Márquez) (+++): the author was inspired to write this book by the story of his parents and other old couple who had to keep their relationship in secret all their lives. The novel describes the relationships along all their lives between mainly three characters: Fermina Daza, her husband, Juvenal Urbino, and her ever love from childhood and ever a candidate, Florentino Ariza. I have to say that I liked more this book than “One Hundred Years of Solitude”. I wrote a post review the book, find it here (in Spanish).
  9. Crime and Punishment (by Fyodor Dostoyevsky) (++): the book narrates the story of Rodion Raskolnikov, an poor student in Saint Petersburg who kills an unscrupulous pawnbroker for her cash. Raskolnikov had written an article in which he discussed how some crimes could be seen as acceptable in the name of a greater good by leading individuals. He convinces himself to be one of them. The story gets ever more complicated as his family comes to town for the marriage of his sister, the investigations by the police, the interrogatories, his errors due the constant illness he suffers from malnutrition, etc.
  10. Sycamore Row”  (by John Grisham) (+++): in this book the author writes a kind of sequel to his all time best seller “A Time To Kill” with the appearance of the main characters of the former book: Jake Brigance, Judge Atlee, Harry Rex Vonner, Lucien Wilbanks… this time the case is about a will that is contested. A will from a white businessman leaving all his estate to his black maid, cutting his family out; a tough decision for Ford County, Mississippi.

Note: You can find here my 2012 reading list, and here, embedded in my summary of 2013, the list of that year.

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Stiglitz on shareholders’ mistreatment

A few days ago I published a book review of “The Roaring Nineties” by the Nobel prize Joseph E. Stiglitz. I wanted to share here some passages related to how shareholders, investors are mistreated by those who are supposed to work for them and how alignment of incentives play a role in this.

[On boards of directors] “Here again there was another conflict of interest. Boards are supposed to protect the interests of all shareholders. But some boards, whose members often receive large fees for membership and attendance, were frequently more concerned with pleasing the CEO than fulfilling their supposed fiduciary responsibilities.”

[On one-offs] “[executives] found ways to boost their earnings – through sam transactions which allowed them to book revenues even if they didn’t really have them, or by moving expenses off the books, or by using one-time write-offs (time and time again), to try to give the appearance of robust normal profits. Their objective was to create the appearance of alluring success […] and cash out before the world discovered the truth.”

[On incentives] “The bankruptcy report spoke of “numerous failures inadequacies and breakdowns in the multilayered system designed to protect the integrity of financial reporting system at WorldCom, including the board of directors, the audit committee, the company’s system of internal controls and the independent auditors”. The problem, I would argue, was deeper, and touched not only WorldCom: the problem was with incentives – for the management, and for those who were supposedly watching over management.”

[On the subject of fines] “They accepted fines of unprecedented levels […] but, in most cases, only after being assured that their CEOs would not do [jail] time. […] in many cases it was not the CEOs but the companies that paid them;  indeed, the fines imposed on corporations for such bad behavior represent a curious case where the victim is punished twice over. For ultimately, the shareholders – who have already been cheated by corporate management- bear the costs of such fines.

[On executives’ greed and regulation] “The deregulation mentality made the suggestion of increased government regulation […] an anathema. What worried many were shareholder suits, which they viewed as simply reflecting the rapacious greed of lawyers, not part of a system of checks and balances against the rapacious greed of corporate executives.”

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The Roaring Nineties

 

The Roaring Nineties, Joseph E. Stiglitz.

The Roaring Nineties, Joseph E. Stiglitz.

Joseph E. Stiglitz (1) served and later chaired the  Council of Economic Advisers (CEA) during the Clinton Administration from 1993 to 1997. He was awarded the John Bates Clark Medal (1979) and he Nobel Prize in Economics (2001). After leaving the CEA he moved to the World Bank. He taught in the past at Stanford and now teaches in Columbia University. He also served at the OECD and several other positions to which he has been appointed throughout his career.

Stiglitz wrote “The Roaring Nineties” in 2003 to offer an insider’s view of economic policy making and the economic boom and bust of the nineties. I loved the book. I use to make some annotations and marks in the books I read. I counted the ones I made reading this book: 52.

Stiglitz is frank in admitting that all the focus that the Clinton administration had at the beginning of the term in passing laws to improve the living of the disfavored ones was suddenly put aside due to the mantra of deficit reduction. He openly regrets it several times throughout the book and offers some criticism on the administration he took part in and others before and after. Especially Reagan’s and Bush II’s.

Now, in 2014, there are many who brag about their seeing of the bubble that caused the financial crisis which burst between 2007-2009. It would be rather easy to see what they really said beforehand. See what Stiglitz published in 2003:

The huge tax cuts of 2001 and 2003 were larger than the country could afford. The surplus of 2% of GDP of 2000 was converted in short order to a deficit of 5% of deficit – a huge turnaround in a short space of time. Americans were not saving enough to finance this deficit, and so the country, in effect, turned to the rest of the world. The country is living well beyond its means, borrowing more than a billion and a half dollars a day. […]

Households took on more debt because interest rates were low and they could afford it. But as interest rates inevitably rise as the economy strengthens, households will find it difficult to service their debt. This will be further aggravated in the years to come as large budget deficit means interest rates will be higher than they otherwise would be, putting an extra burden on the country. Many households will be forced into bankruptcy. Many will be forced to rein in their consumption. There is a strong risk that the real state bubble will break, or at the very least, prices will stagnate […] What is clear, however, is thar the Bush-Greenspan strategy, entailing greater reliance on low-interest rates and mortgage refinancing to maintain the economy through the period 2001-2004, and tax cuts for the rich, providing far less stimulus to the economy than would have been provided by investment tax credits or tax cuts for the poor, was a risky one, and has put the future of the American economy in jeopardy.” (emphasis is mine)

The risk then became an issue, which is still lasting 10 years later. This comes just in the preface of the book. Stiglitz specialization is information asymmetry. He gives some examples of such asymmetry in different passages of the book when analyzing errors, incentives, etc., in accounting, auditing, special interest agendas.

Let me quote some of the gems I had marked in his book:

“[…] one of the reasons that the invisible hand may be invisible is that it is simply not there”

“[…] “Voodoo” economics of Reagan, who somehow believed that by cutting taxes you could raise tax revenues […]”

“Developing countries were told to open their markets to every imaginable form of import […]. Meanwhile, we maintained stiff trade barriers and large subsidies of our own on behalf of U.S. farmers and agribusiness, thereby denying our market to the farmers of the Third World. […]

These were not the only examples of what struck those abroad as blatant hypocrisy.”

“We scolded the developing nations about their disrespect for intellectual property laws that we, too, had scorned in our days as a developing nation. (The United States didn’t get around to protecting the rights of foreign authors until 1891)”

“[…] the folly of the Reagan tax cuts. […] a theory scrawled on the back of a napkin, called the Laffer curve – after Arthur Laffer, who then was at the University of Chicago- which claimed  that as taxes got higher and higher, people worked less hard and saved less […]”

“Over the years, I have become convinced that the confidence argument is the last refuge of those who cannot find better arguments; when there is no direct evidence that deficits directly promote recovery or adversely affect growth, then they do so because of confidence.”

“Fiscal responsibility was supposed to be the province of the conservative Republicans, but after twelve years of fiscal profligacy, a tax cut that Reagan said would pay for itself through energizing the economy but did not, it was left to Clinton to do the dirty work, without the help of the Republicans, who voted unanimously against Clinton’s deficit reduction plan. Their opposition confirmed the more diabolic interpretation of the Reagan tax cuts. They didn’t really believe in supply-side economics, the theory that the tax cut would spur the economy so much that tax revenues would actually increase. Instead, they knew that there would be shortfalls, and they hoped that the shortfalls would force a cutback in government spending. The true agenda was thus to force large cutbacks in the size of government […]”

“[…] the IMF was founded, under the intellectual aegis of Keynes: to provide with the money necessary for expansionary fiscal policy in an economic downturn. But the IMF has forgotten its original mission […]”

“The New Economy-the innovations which continue to fuel the productivity growth and form the basis of this country’s long-run strength depend on the advances of science, on researches at universities and research labs, who work sixteen-hour days and more in the tireless search to try to understand the world in which we live. These are the people we should have been rewarding, and encouraging.”

I think that with these excerpts you get a glimpse of the directness of the book. It touches economic policies, creative accounting and accounting standards, conflicts of interests, incentives, the case study of Enron, employment, the role of central banks, the danger of quick adoptions of deregulation, corporate hypocrisy, globalization…

I strongly recommend the reading of this book (about 380 pages).

(1) You may follow him in Twitter.

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