The Price of Time: The Real Story of Interest

The Price of Time is a 2022 book by Edward Chancellor that explores the history of interest from its origins in ancient Mesopotamia to the global credit booms of the twenty-first century. He argues that low interest rates create asset price inflation, weak economic growth, rising inequality, zombie companies, elevated debt levels, and the pensions crises that have afflicted the West. He also shows that only by understanding interest can we hope to face the challenges ahead.

Format: Hardback
Length: 432 pages
Publication date: 07 July 2022
Publisher: Penguin Books Ltd

The first book of the next crisis, a 2023 Hayek Book Prize winner and 2022 Financial Times Business Book of the Year Award longlisted title, delves into the fascinating world of interest. All economic and financial activities unfold over time, and it is interest that coordinates these activities. The story of capitalism, therefore, revolves around the concept of interest: the price individuals, companies, and nations pay to borrow money. In his captivating book, Edward Chancellor takes readers on a historical journey, tracing the origins of interest from ancient Mesopotamia to the global credit booms of the twenty-first century.

While we often assume that high interest rates are detrimental, Chancellor challenges this notion by arguing that when money becomes too accessible, financial markets become unstable. He takes us to the present day, where interest rates have reached unprecedented lows, including the surprising emergence of negative rates in Europe and Japan. Chancellor highlights how these low interest rates have contributed to profound economic insecurity and financial fragility, conditions that hinder the growth and prosperity of economies.

Chancellor reveals that extremely low interest rates not only lead to asset price inflation but also play a significant role in weak economic growth, rising inequality, the persistence of zombie companies, elevated debt levels, and the pensions crises that have plagued the West in recent years. These conditions create an environment where economies struggle to thrive and face mounting challenges.

Conversely, easy money in China has resulted in an epic real estate bubble, accompanied by the largest credit and investment boom in history. As the global financial system teeters on the brink of another crisis, Chancellor emphasizes the importance of understanding interest in navigating the challenges ahead. By delving into the history, dynamics, and implications of interest, Chancellor offers insights that can help us prepare for the future and build more resilient and sustainable financial systems.

In conclusion, The Price of Time is a must-read for anyone interested in economics, finance, and the broader implications of economic activities. Edward Chancellor's insightful analysis provides valuable insights into the history, dynamics, and challenges of interest, offering a roadmap for navigating the complex and ever-changing financial landscape.

Weight: 684g
Dimension: 163 x 240 x 44 (mm)
ISBN-13: 9780241569160