The Ascent of Money (2008)

The Ascent of Money: A Financial History of the World is a captivating exploration of the intricate relationship between money, credit, and banking throughout human history. Authored by Niall Ferguson, then a Harvard professor, the book delves into the evolution of financial systems, tracing their impact on societies from ancient times to the present day.

The documentary adaptation, titled Ascent of Money: Boom and Bust, provides context and understanding for the contemporary economic crisis. Historian Niall Ferguson takes viewers on a global journey, unraveling the mechanisms employed by top financiers to maximize returns on investments. The narrative is punctuated by gut-wrenching crashes, revealing the volatile nature of financial markets.

Here’s a glimpse into the documentary’s key themes:

1. The Rise of Currency: The journey begins with Spanish explorer Francisco Pizarro, illustrating the establishment of gold and silver as currency. We witness the birth of lending and credit, leading to the foundational elements of modern banking, exemplified by the Bank of England in the 19th century.
2. The Bond Market: The Renaissance-era Italy witnessed the flourishing bond market, while the Rothschild family amassed wealth in the 19th century. Bonds become pivotal instruments in shaping financial landscapes.
3. Stock Markets and Bubbles: The joint-stock company emerges, followed by the Mississippi Bubble, the Great Depression, and the Enron bankruptcy. Ferguson dissects the stock market’s role in shaping economic fortunes.
4. Insurance and Risk: Hurricane Katrina serves as an example of insurance’s importance. The creation of Lloyd’s, the first organized insurance company, is explored.
5. Housing as Investment: The safety behind housing as an investment is discussed, emphasizing its impact on individuals and economies.
6. Globalization and the US-China Relationship: The documentary concludes by examining globalization’s recent implementation worldwide and its implications for the United States and China.

In the afterword, Ferguson draws parallels between finance and evolution, addressing the Great Recession that unfolded during the book’s writing. The documentary, which won an International Emmy Award, provides a thought-provoking lens into the fascinating world of finance.