The slumps that shaped modern finance
Finance is not merely prone to crises, it is shaped by them. Five historical crises show how aspects of today’s financial system originated—and offer lessons for today’s regulators
WHAT is mankind’s greatest invention? Ask people this question and they are likely to pick familiar technologies such as printing or electricity. They are unlikely to suggest an innovation that is just as significant: the financial contract. Widely disliked and often considered grubby, it has nonetheless played an indispensable role in human development for at least 7,000 years.
This article appeared in the Essay section of the print edition under the headline “The slumps that shaped modern finance”
Essay April 12th 2014
From the April 12th 2014 edition
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