This chapter takes a closer book at the joint-stock company whose origins are from Amsterdam and Paris.

The bond market has grown incredibly large and often holds the economies of whole nations in its hands. This is how corporations and the government borrow money from institutions and individuals. Ferguson talks about the history of money lending which includes the way courts are involved, the balance of interest, and the targeting of creditors that are members of an ethnic minority by a money-owing majority.Ĭhapter two explores the bond market which rose in Renaissance Italy. The rest is virtual: salaries that are transferred to bank accounts and credit cards that spend the money. Today, however, money is closer to a form of credit because it has moved more towards “virtual money.” Surprisingly, only 11% of the total US cash is held in American hands. Money with inherent value was preferred for its permanence. Money-less societies have never proven to be sustainable. Every society uses money because it is much more efficient than barter. The first chapter explores the history of money and how it influenced society from its earliest days. Ferguson states financial markets are like a mirror to humanity. He looks at the ways fluctuations of the market can lead to the rise and fall of ruling powers and believes credit and debt are as important to the rise of civilization as any other innovation. Christians believe the love of money is the root of all evil, generals think it’s the power of war, and revolutionaries believe it’s the chains or labor. Ferguson shows that finance is the foundation of human progress.Īt the beginning of the book, Ferguson points out the ways money is viewed as the root of all evil and discusses the way it factors into war and the march of progress. This book dives deep into the intersection of economics and society. Ferguson explores themes of greed, how we treat people based on money, what our society values and the influence money has on our culture. He tracks the development of currency as a form of trade, explores its growth and effects on society, and looks forward to how it may continue to develop in the future. In Niall Ferguson’s The Ascent of Money, Ferguson analyzes the history of money, banking, and credit.

The ascent of money