New Books in Economics

Robert L. Hetzel presented a paper at the Dallas Fed conference on February 9th, 2023 titled, “Does the Federal Open Market Committee Have a Viable Strategy for Controlling Inflation?” The Federal Open Market Committee or FOMC sets monetary policy for the United States with the objectives of price stability and full employment. In mid-2021, inflation began to rise, reaching its highest level in 40 years. In response, the FOMC raised interest rates and hinted at broader policy shifts. In his paper, Robert makes sense of the current challenges facing monetary policy and considers the best routes for the FOMC to take to avoid a hard landing.Robert L. Hetzel is a visiting scholar at the Federal Reserve Bank of Chicago and a senior affiliated scholar at the Mercatus Center at George Mason University.Caleb Zakarin is the Assistant Editor of the New Books Network. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Katherine S. Newman and Elisabeth S Jacobs' book Moving the Needle: What Tight Labor Markets Do for the Poor (U California Press, 2023) is a timely investigation reveals how sustained tight labor markets improve the job prospects and life chances of America’s most vulnerable households.Most research on poverty focuses on the damage caused by persistent unemployment. But what happens when jobs are plentiful, and workers are hard to come by? Moving the Needle examines how very low unemployment boosts wages at the bottom, improves benefits, lengthens job ladders, and pulls the unemployed into a booming job market.Drawing on over seventy years of quantitative data, as well as interviews with employers, jobseekers, and longtime residents of poor neighborhoods, Katherine S. Newman and Elisabeth S. Jacobs investigate the most durable positive consequences of tight labor markets. They also consider the downside of overheated economies that can ignite surging rents and spur outmigration. Moving the Needle is an urgent and original call to implement policies that will maintain the current momentum and prepare for potential slowdowns that may lie ahead.John Emrich has worked for decades years in corporate finance, business valuation and fund management. He has a podcast about the investment space called Kick the Dogma. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

If you have ever gotten excited over buying a new object only to feel let down once you acquire it, then today’s discussion will be relevant to you. My guest is Todd McGowan, author of the book Capitalism and Desire: The Psychic Cost of Free Markets (2016, Columbia University Press). We discuss his critique of capitalism as a system that encourages us to forever chase satisfactions that never come. And we explore his suggestion that true satisfaction lies in the wanting, not the acquiring. It’s a fascinating conversation that will radically change the way you approach everyday consumption and how you think about your own satisfaction.Todd McGowan is professor of film studies at the University of Vermont. He is the author of several other books, including Enjoying What We Don’t Have: The Political Project of Psychoanalysis (2013, University of Nebraska Press), Only a Joke Can Save Us: A Theory of Comedy (2017, Northwestern University Press), and Universality and Identity Politics (2020, Columbia University Press). He is also co-host, along with Ryan Engley, of the podcast Why Theory.Eugenio Duarte, Ph.D. is a psychoanalyst and clinical psychologist practicing in Miami. He treats individuals and couples, with specialties in gender and sexuality, eating and body image problems, and relationship issues. He is a graduate and faculty of William Alanson White Institute in Psychiatry, Psychoanalysis, and Psychology in New York City and former chair of their LGBTQ Study Group; and faculty at Florida Psychoanalytic Institute in Miami. He is a contributing author to the books Introduction to Contemporary Psychoanalysis: Defining Terms and Building Bridges (2018, Routledge) and Patriarchy and its Discontents: Psychoanalytic Perspectives (2023, Routledge) and has published on issues of gender, sexuality, and sexual abuse. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In 2010, Ping An took over Shenzhen Development Bank, ending an experiment that had never been tried before, and not been tried since: a foreign company owning and managing a Chinese bank. Newbridge Capital, a private equity firm, shocked the financial world when it agreed to take over the bank five years earlier–and successfully made it a pioneer.Weijian Shan, then a partner in Newbridge Capital, writes about the whole escapade in his third book Money Machine: A Trailblazing American Venture in China (Wiley: 2023), from when the deal first started, through its many reforms, to Newbridge’s final exit.In this interview, Shan and I talk about the trailblazing deal to take over Shenzhen Development Bank, how important that was in the story of China’s development–and whether private equity gets a bad rap.Weijian Shan is co-founder and executive chairman of PAG, a leading private equity firm in Asia. Prior to his career in private equity, Shan was, at different times, a managing director at JP Morgan and a professor at the Wharton School of the University of Pennsylvania. He is also the author of Out of the Gobi: My Story of China and America (Wiley: 2019) and Money Games: The Inside Story of How American Dealmakers Saved Korea’s Most Iconic Bank (Wiley: 2020).You can find more reviews, excerpts, interviews, and essays at The Asian Review of Books.. Follow on Twitter at @BookReviewsAsia.Nicholas Gordon is an associate editor for a global magazine, and a reviewer for the Asian Review of Books. He can be found on Twitter at @nickrigordon. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

"The Rise of Central Banks: State Power in Financial Capitalism" podcast features Leon Wansleben, an expert on central banks. Wansleben discusses the origins and consequences of central banks' increasing influence. He compares developments in the US, the UK, Germany, and Switzerland, emphasizing the policy innovations of central bankers. The podcast explores the impact of central banks on financial systems, the role of neoliberalism, and the empowerment of central banks through policy techniques.

If your genes make you better suited to succeed, is that fair? And if not, can anything be done about it? Kathryn Paige Harden – professor psychology at University of Texas in Austin – tells Owen Bennett Jones that we should acknowledge the difference in our genetic make ups and then set about thinking about how to make a fairer society in the light of this differences. Harden is the author of The Genetic Lottery: Why DNA Matters for Social Equality (Princeton UP, 2021).Owen Bennett-Jones is a freelance journalist and writer. A former BBC correspondent and presenter he has been a resident foreign correspondent in Bucharest, Geneva, Islamabad, Hanoi and Beirut. He is recently wrote a history of the Bhutto dynasty which was published by Yale University Press. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Over the past three decades, digital technologies like smartphones and laptops have transformed the way we work in the US. At the same time, workers at both ends of the income ladder have experienced rising levels of job insecurity and anxiety about their economic futures. In Left to Our Own Devices: Coping with Insecure Work in a Digital Age (Oxford UP, 2022), Julia Ticona explores the ways that workers use their digital technologies to navigate insecure and flexible labor markets. Through 100 interviews with high and low-wage precarious workers across the US, she explores the surprisingly similar "digital hustles" they use to find work and maintain a sense of dignity and identity. Ticona then reveals how the digital hustle ultimately reproduces inequalities between workers at either end of polarized labor markets. A moving and accessible look at the intimate consequences of contemporary capitalism, Left to Our Own Devices will be of interest to sociologists, communication and media studies scholars, as well as a general audience of readers interested in digital technologies, inequality, and the future of work in the US. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Having lived through both China’s Great Leap Forward during primary school, then the Cultural Revolution and the closing of schools for ten years, Beijing-born Weijian Shan, instead of a secondary school education spent six hard years in the Gobi Desert with the Army Construction Corps.Remarkably, the young Shan made it to a PhD program at UC Berkeley where he met his academic advisor, then Professor Janet Yellen, later U.S. Treasury Secretary. (Somewhat ironically now attending to the insolvencies of Silicon Valley Bank and Signature Bank). Shan goes on to become a Wharton School business professor before moving into investment banking and private equity investing making financial business history with the successful takeover and turnaround of failed banks in South Korea and China.Both generous with his time and patient with my questions, Dr. Shan is currently the CEO at PAG, a private equity firm managing assets of some $50 billion. We discussed the books in chronological order with a few tangents that Shan used to both clarify and instruct such as: his 2006 public debate with World Bank economists about Chinese profitability; why his generation truly is a ‘Lost Generation’; his career and transitions including, among other things, the connection between recent financial crises and the basics of sound financial banking systems; lessons from and advice for business negotiation; the importance of leadership, and his two keys to an ‘ownership’ mentality. All within the context of his well-written and interesting narratives providing personal accounts of life during the Cultural Revolution period in China, as well as historic overseas private equity bank deals as described by the publisher, Wiley and Sons, adapted below: Out of the Gobi: My Story of China and America draws a vivid picture of the raw human energy and the will to succeed against all odds. Shan, a former hard laborer who is now one of Asia's best-known financiers, is thoughtful, observant, eloquent, and brutally honest, making him well-positioned to tell the story of a life that is a microcosm of modern China, and of how, improbably, that life became intertwined with America. This powerful and personal perspective on China and America will inform Americans' view of China, humanizing the country, while providing a rare view of America from the prism of a keen foreign observer who lived the American dream. (2019) Money Games: The Inside Story of How American Dealmakers Saved Korea’s Most Iconic Bank is a riveting tale of one of the most successful buyout deals ever: the acquisition and turnaround of what used to be Korea's largest bank by the Asian arm of an American firm, Newbridge Capital. Full of intrigue and suspense, this insider's account is told by the chief architect of the deal itself, the celebrated author and private equity investor Weijian Shan. With billions of dollars at stake, and the nation's economic future on the line, Newbridge Capital sought to become the first foreign firm in history to take control of one of Korea's most beloved financial institutions. (2020) In Money Machine: A Trailblazing American Venture in China, Weijian Shan delivers a compelling account of one of the most significant deals in private equity history: the first and only foreign acquisition of control of a Chinese national bank. Money Machine is the fascinating inside story of the transaction as told by the man who led it, from the intrigues of dealmaking to the complex and uncharted process of securing control by a foreign investor of a Chinese nationwide financial institution, a feat that had never before been attempted, nor has it been repeated. (2023) Keith Krueger teaches at the Sydney Business School at Shanghai University - can be reached at keith.krueger1@uts.edu.au or keithNBn@gmail.com. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Political Scientist Hernán Flom has written a fascinating and nuanced analysis of how the criminal drug markets operate in Argentina and Brazil. Instead of tracking the path that illegal drugs take or examining how the criminal justice system works in Latin American countries, Flom has focused, instead, on the illegal drug markets as economic and political institutions to examine how they actually operates within Brazil and Argentina. From this perspective, we learn quite a lot about market forces, civilian and police institutions, and “law and order” approaches in both these countries. The Informal Regulation of Criminal Markets in Latin America (Cambridge UP, 2022) provides a comparative analysis of the criminal markets in these two countries—Brazil and Argentina—as well as differentiating between how these markets work in larger, urban centers, and in smaller cities. This effectively teases out distinctions between how police work with or against these criminal markets, and how the local and national politicians often articulate distinct approaches to how to manage criminal enterprises.The Informal Regulation of Criminal Markets in Latin America examines patterns in the relationships between police, politicians, drug cartels, and criminal actors. These patterns are not necessarily new, but as Flom makes clear, they operate in different ways in different venues and with regard to different types of informal arrangements. In doing a cross national comparison as well as internal comparisons within country, Flom has been able to get at some distinctions that come from the colonial past that has also led to different racial configurations in these comparative urban environments. The research also measures different levels of both police and criminal violence, to gage the kinds of relationships that may be in place between these often-opposing entities. The relationship between the police, as subnational units, and politicians also figures into the various levels of police violence. The Informal Regulations of Criminal Markets in Latin America gets at the key variables that come into play in regard to police conduct and the kinds of policies that politicians are both articulating and trying to implement—often through the police.This is a multi-dimensional analysis that explores criminal markets from important and unique perspectives. Flom worked at the National Ministry of Security in Argentina during the course of this research, and he is able to bring his scholarly expertise as well as his own experience to the research and analysis, making this a particularly rich comparison across countries and urban centers within those countries.Lilly J. Goren is a professor of political science at Carroll University in Waukesha, WI. She is co-editor of The Politics of the Marvel Cinematic Universe (University Press of Kansas, 2022), as well as co-editor of the award winning book, Women and the White House: Gender, Popular Culture, and Presidential Politics (University Press of Kentucky, 2012), Email her comments at lgoren@carrollu.edu or tweet to @gorenlj. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Algorithms and apps analyze data and tell you how to beat the traffic, what books to buy, what music to listen to, and even who to date—often with great results. But what do you do when you face the big decisions of life—the "wild problems" of who to marry, whether to have children, where to move, how to forge a life well-lived—that can’t be solved by measurement or calculation?In Wild Problems: A Guide to the Decisions That Define Us (Portfolio, 2022), president of Shalem College and host of EconTalk, Russ Roberts offers puzzled rationalists a way to address these wild problems. He suggests spending less time and energy on the path that promises the most happiness, and more time on figuring out who you actually want to be. He draws on the experience of great artists, writers, and scientists of the past who found creative ways to navigate life’s biggest questions. And he lays out strategies for reducing the fear and the loss of control that inevitably come when a wild problem requires a leap in the dark.Ultimately, Roberts asks us to see ourselves and our lives less as a problem to be solved than a mystery to be experienced. There's no right decision waiting to be uncovered by an app or rational analysis. Reality is harder than that and, perhaps, a little more interesting.Renee Garfinkel, Ph.D. is a psychologist, writer, Middle East television commentator and host of The New Books Network’s Van Leer Jerusalem Series on Ideas. Write her at reneeg@vanleer.org.il. She's on Twitter @embracingwisdom. She blogs here. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics