#ReadThis @PrincetonUPress A Monetary and Fiscal History of the United States, 1961–2021 by @Blinder_Alan Alan S. Blinder
It may seem that the economy is unpredictable and uber-volatile, especially in recent times, but if you want to understand it, this new book by Princeton University Press whom we are proud to have worked with starting in 2013 is just the trick and it has been far too long since we considered their excellence in a review.
If you have had the fortune to study macroeconomics and microeconomics (we have: Boston College and Peachy was once an economics major but went for history in the end) you will have a fabulous foundation for which to learn everything Blinder presents, and if you don't, you have Google and you can look it up. We quite concur with Alan Blinder when he quotes the absolutely brilliant Mark Twain on page 1: "'History doesn't repeat itself, but it often rhymes." We like how history is referenced with Fraunces Tavern and Lexington and Concord (p. 98) because American History matters. Also note it seems that Blinder was born in Brooklyn so he is a New Yorker.
A lot of American history is in these pages and one part reminded us of the popular New England saying:
And this is good old Boston
The home of the bean and the cod
Where the Lowells speak only to Cabots
And the Cabots speak only to God
For more, read page 158!
We like how this is a book of history and not theory. His obvious accomplishments do not get in the way of presenting ideas clearly so everyone understands: he writes at an effective level. If you don't understand the equations just keep going and read the English.
Of course everyone knows the difference between Monetary (Fed Funds) and Fiscal (Tax and Spend) Policy and understanding these is central to this theme along with Keynesian ideas.
The importance of the fixed-income market and its vastness is widely evident to everyone in the know, however, the common person may not realize the gigantic bond market and its impact; all taxable is of course priced off treasuries. Oh how we love CDO's and derivatives!
It's obvious that Blinder is qualified in this field not only by studying longevity (he started studying economics at Princeton in the fall of 1963) but also observation and participation as he states. In June 1994 Blinder joined the Federal Reserve Board. This is the first time we have read Blinder and it makes sense that he builds on his previous work, though it is interesting to note he quotes and references himself more than anyone else in the references included at the back of the book.
This book starts off with the great Kennedy administration. Kennedy was a fiscal conservative.
Helpful graphs and useful biographies also color this work. We particularly like the Chair Martin and on page 19: "'The Federal Reserve...is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.'" See how fun learning economics is? You just have to experience creative examples like this one. And we love The Plaza Accord on page 146; not only is The Plaza great for Edward's style but also for economics.
We would have liked this book better if it was politically neutral, which it is not. Blinder is not a fan of Republicans (p. 233 references Gore being robbed of The White House, page 300 Obama riding in on horseback to save the day) and it's clear that we are Reagan enthusiasts (read his winning book reviews) and Reagonomics (p.137). On page 330 when Blinder states Trump came down an elevator-we would question that. We believe he came down an escalator. Maybe Blinder didn't see it.
Chapter 19 clearly ties all in a bow and it's presented in an organized fashion in four points. Perhaps start with this chapter then go to page one and read the whole thing straight so you have a map of where you are going.
Whether or not you are in agreement with Blinder politically, you should still Read This as we believe you'll learn and Free Speech Matters! (Thank you Elon Musk and your Twitter.) Think about it: Are you better off than you were four years ago?! Focus on what you can control. This book will fill you in on what you really cannot control yourself.
Finally, we would like this book reprinted in 2023 with a new chapter on 2022 in Retrospect because of the wild volatility. If you aren't convinced yet we will venture to guess you are affected by the monster of inflation right now. It is not an accident. Read This and all will become clear.
Founded in 1905, Princeton University Press is a nonprofit publisher with close connections to Princeton University. The Press brings influential voices and ideas to the world stage through their academic scholarship, advancing the frontiers of scholarly knowledge and promoting the human conversation.
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In this book, Alan Blinder, one of the world’s most influential economists and one of the field’s best writers, draws on his deep firsthand experience to provide an authoritative account of sixty years of monetary and fiscal policy in the United States. Spanning twelve presidents, from John F. Kennedy to Joe Biden, and eight Federal Reserve chairs, from William McChesney Martin to Jerome Powell, this is an insider’s story of macroeconomic policy that hasn’t been told before—one that is a pleasure to read, and as interesting as it is important.
Focusing on the most significant developments and long-term changes, Blinder traces the highs and lows of monetary and fiscal policy, which have by turns cooperated and clashed through many recessions and several long booms over the past six decades. From the fiscal policy of Kennedy’s New Frontier to Biden’s responses to the pandemic, the book takes readers through the stagflation of the 1970s, the conquest of inflation under Jimmy Carter and Paul Volcker, the rise of Reaganomics, and the bubbles of the 2000s before bringing the story up through recent events—including the financial crisis, the Great Recession, and monetary policy during COVID-19.
A lively and concise narrative that is sure to become a classic, A Monetary and Fiscal History of the United States, 1961–2021 is filled with vital lessons for anyone who wants to better understand where the economy has been—and where it might be headed.Alan S. Blinder is the Gordon S. Rentschler Memorial Professor of Economics and Public Affairs at Princeton University, a former vice chair of the Federal Reserve Board, and a former member of the President’s Council of Economic Advisers. A regular columnist for the Wall Street Journal, he is the author of many books, including the New York Times bestseller After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead. He lives in Princeton, New Jersey.
