![]() ![]() As King argues, this is financial alchemy-the creation of extraordinary financial powers that defy reality and common sense. Common paper became as precious as gold, and risky long-term loans were transformed into safe short-term bank deposits. We take these systems for granted today, yet at their core both ideas were revolutionary and almost magical. Yet the flowering of technological innovations during that dynamic period relied on the widespread adoption of two much older ideas: the creation of paper money and the invention of banks that issued credit. The Industrial Revolution built the foundation of our modern capitalist age. In The End of Alchemy he offers us an essential work about the history and future of money and banking, the keys to modern finance. ![]() We all sense that, but Mervyn King knows it firsthand his ten years at the helm of the Bank of England, including at the height of the financial crisis, revealed profound truths about the mechanisms of our capitalist society. Something is wrong with our banking system. ![]()
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