Money in the Twenty-First Century: Cheap, Mobile, and Digital

Economist Richard Holden explores the future of finance in Money in the Twenty-First Century, examining how low interest rates, mobile money, and cryptocurrencies are redefining money, who controls it, and the potential risks and benefits. He discusses the influence of key figures such as Janet Yellen, Vitalik Buterin, and Raghuram Rajan and investigates the infrastructure, currencies, policy, and international monetary system that shape the digital age. The book asks if governments can maintain control over these powerful forces.

Format: Hardback
Length: 232 pages
Publication date: 30 January 2024
Publisher: University of California Press

The world of finance is undergoing a seismic shift, driven by three powerful forces that have redefined the very essence of money, its control, and its potential future. These forces are cheapness, digitalization, and mobility. In his book, "Money in the Twenty-First Century," economist Richard Holden delves into the merits and demerits of low interest rates, mobile money, and cryptocurrencies, and offers a comprehensive analysis of how these three elemental forces will shape our financial landscape in the coming decades.

Holden begins by exploring the impact of cheapness on the economy. With interest rates at historically low levels, borrowing has become more affordable, leading to increased economic activity and investment. However, this has also created concerns about the potential for inflation and asset bubbles. He examines the role of central banks in managing interest rates and the potential risks associated with prolonged periods of low interest rates.

Next, Holden turns his attention to digitalization and the rise of mobile money. Mobile phones have revolutionized the way we transact, making it easier and faster for people to access financial services. He discusses the benefits of mobile money, such as increased financial inclusion and reduced transaction costs, as well as the challenges posed by security concerns and the need for regulatory frameworks.

Cryptocurrencies, another disruptive force in finance, are also explored in detail. Holden discusses the potential benefits of cryptocurrencies, such as decentralized finance, faster transactions, and lower transaction fees, as well as the risks associated with their volatility, lack of regulation, and potential for fraud. He examines the regulatory challenges posed by cryptocurrencies and the potential for governments to embrace them as a form of payment.

Throughout the book, Holden weaves in the stories of three individuals who have exerted massive influence over the future of modern money: US Treasury Secretary Janet Yellen, Ethereum cofounder Vitalik Buterin, and Raghuram Rajan, former governor of the Reserve Bank of India and chief economist at the International Monetary Fund. These individuals provide valuable insights into the policy decisions, technological advancements, and economic challenges that are shaping the future of money.

Moving from micro to macro, Holden investigates the infrastructure that permits digital transactions, the currencies that underpin them, the race for control of those currencies, shifts in policy and the international monetary system, and the impact on our politics of money in the digital age. He explores the role of central banks, financial institutions, and governments in regulating and overseeing the financial landscape, and the potential for new technologies and innovations to disrupt the traditional financial system.

In conclusion, "Money in the Twenty-First Century" is a thought-provoking and comprehensive exploration of the forces that are shaping the future of finance. By examining the virtues and risks of cheapness, digitalization, and mobility, Holden offers a valuable roadmap for policymakers, investors, and individuals alike. As the world of finance continues to evolve, it is essential to stay informed and adaptable to the changing landscape.

Weight: 454g
Dimension: 159 x 237 x 25 (mm)
ISBN-13: 9780520395268