Money of the Mind is a business classic that is steeped in an Austrian view of money and credit markets. Grant makes the subject come to life like no one else.
James Grant is the ultimate specialist. His specialty is credit, or what he calls "money of the mind." He tracks it like a bloodhound. Here he puts his talents to work on American history. He reveals the everyday workings of credit in the lives of Americans with a special focus on the 20th century.
Yes, he has a bias. He believes that credit ought to be based on something. It can be savings. It can be the likelihood of repayment. It can be a well-performing enterprise. Whatever the case, money created out of thin air is destructive unless it is grounded in reality.
What Grant shows in this sweeping, entertaining, and relentlessly revealing work is that our lives have suffered as credit has become ever more loose and unbacked through the age of central banking. It has made us all addicts, and this has been bad for the economy, the culture, and society in general.
But rather than preach, Grant shows with fantastic detail. His has the talent of a great journalist in telling the story of the rise of mass credit markets, those who have benefited and those who have lost. He manages to combine a curmudgeonly spirit with a delightful breeziness and sense of humor.
This is one smart book. Just as a piece of historical scholarship, it is a model. As journalism, it is outstanding. As monetary economics, it is solidly rooted in the Austrian tradition. We don't get too much theory here but few books are as good at showing the way Misesian monetary theory plays itself out in the real world.
If you would like to submit a video review of your own please contact the Mises Store.
Austrian Economics, Freedom and Peace