Capital Ideas traces the origins of modern Wall Street, from the pioneering work of early scholars and the development of new theories in risk, valuation, and investment returns, to the actual implementation of these theories in the real world of investment management. Bernstein brings to life a variety of brilliant academics who have contributed to modern investment theory over the years: Louis Bachelier, Harry Markowitz, William Sharpe, Fischer Black, Myron Scholes, Robert Merton, Franco Modigliani, and Merton Miller. Filled with in-depth insights and timeless advice, Capital Ideas reveals how the unique contributions of these talented individuals profoundly changed the practice of investment management as we know it today.
"A lot has happened in the financial markets since 1992, when Peter Bernstein wrote his seminal Capital Ideas. Happily, Peter has taken up his facile pen again to describe these changes, a virtual revolution in the practice of investing that relies heavily on complex mathematics, derivatives, hedging, and hyperactive trading. This fine and eminently readable book is unlikely to be surpassed as the definitive chronicle of a truly historic era." John C. Bogle, founder of The Vanguard Group and author, The Little Book of Common Sense Investing "Just as Dante could not have understood or survived the perils of the Inferno without Virgil to guide him, investors today need Peter Bernstein to help find their way across dark and shifting ground. No one alive understands Wall Street's intellectual history better, and that makes Bernstein our best and wisest guide to the future. He is the only person who could have written this book; thank goodness he did." Jason Zweig, Investing Columnist, Money magazine "Another must-read from Peter Bernstein! This well-written and thought-provoking book provides valuable insights on how key finance theories have evolved from their ivory tower formulation to profitable application by portfolio managers. This book will certainly be read with keen interest by, and undoubtedly influence, a wide range of participants in international finance." Dr. Mohamed A. El-Erian, President and CEO of Harvard Management Company, Deputy Treasurer of Harvard University, and member of the faculty of the Harvard Business School "Reading Capital Ideas Evolving is an experience not to be missed. Peter Bernstein's knowledge of the principal characters-the giants in the development of investment theory and practice-brings this subject to life." Linda B. Strumpf, Vice President and Chief Investment Officer, The Ford Foundation "With great clarity, Peter Bernstein introduces us to the insights of investment giants, and explains how they transformed financial theory into portfolio practice. This is not just a tale of money and models; it is a fascinating and contemporary story about people and the power of their ideas." Elroy Dimson, BGI Professor of Investment Management, London Business School "Capital Ideas Evolving provides us with a unique appreciation for the pervasive impact that the theory of modern finance has had on the development of our capital markets. Peter Bernstein once again has produced a masterpiece that is must reading for practitioners, educators and students of finance." Andr F. Perold, Professor of Finance, Harvard Business School
The right of governments to employ capital controls has always been the official orthodoxy of the International Monetary Fund, and the organization's formal rules providing this right have not changed significantly since the IMF was founded in 1945. But informally, among the staff inside the IMF, these controls became heresy in the 1980s and 1990s, prompting critics to accuse the IMF of indiscriminately encouraging the liberalization of controls and precipitating a wave of financial crises in emerging markets in the late 1990s. In Capital Ideas, Jeffrey Chwieroth explores the inner workings of the IMF to understand how its staff's thinking about capital controls changed so radically. In doing so, he also provides an important case study of how international organizations work and evolve. Drawing on original survey and archival research, extensive interviews, and scholarship from economics, politics, and sociology, Chwieroth traces the evolution of the IMF's approach to capital controls from the 1940s through spring 2009 and the first stages of the subprime credit crisis. He shows that IMF staff vigorously debated the legitimacy of capital controls and that these internal debates eventually changed the organization's behavior--despite the lack of major rule changes. He also shows that the IMF exercised a significant amount of autonomy despite the influence of member states. Normative and behavioral changes in international organizations, Chwieroth concludes, are driven not just by new rules but also by the evolving makeup, beliefs, debates, and strategic agency of their staffs.
Bruce Jacobs sifts through the history of modern finance, from the efficient market hypothesis to behavioral psychology and chaos theory, to determine the cause of recent market crashes. Includes a Foreword from Nobel Laureate Harry M. Markowitz. Showcases the expertise of an author who identified and predicted the causes of 1987, 1997 and 1998 crashes. Explains the risks of little-understood option replication. Offers chapter summaries, appendices and a glossary.
The last 200 years have witnessed a 100-fold leap in well-being. Deirdre McCloskey argues that most people today are stunningly better off than their forbearers were in 1800, and that the rest of humanity will soon be. A purely materialist, incentivist view of economic change does not explain this leap. We have now the third in McCloskey's three-volume opus about how bourgeois values transformed Europe. Volume 3 nails the case for that transfiguration, telling us how aristocratic virtues of hierarchy were replaced by bourgeois virtues (more precisely, by attitudes toward virtues) that made it possible for ordinary folk with novel ideas to change the way people, farmed, manufactured, traveled, ruled themselves, and fought. It is a dramatic story, and joins a dramatic debate opened up by Thomas Piketty in his best-selling Capital in the 21st Century. McCloskey insists that economists are far too preoccupied by capital and saving, arguing against the position (of Piketty and most others) that capital induces a tendency to get more, that money reproduces itself, that riches are created from riches. Not so, our intrepid McCloskey shows. Bill Gates and Steve Jobs, among the biggest wealth accumulators in our era, didn't get rich through the magic of compound interest on capital. They got rich through intellectual property, creating billions of dollars from virtually nothing. Capital was no more important an ingredient to the original Apple or Microsoft than cookies or cucumbers. The debate is between those who think riches are created from riches versus those who, with McCloskey, think riches are created from rags, between those who see profits as a generous return on capital, or profits coming from innovation that ultimately benefits us all.
"Capital is the defining feature of modern economies, yet most people have no idea where it actually comes from. What is it, exactly, that transforms mere wealth into an asset that automatically creates more wealth? The Code of Capital explains how capital is created behind closed doors in the offices of private attorneys, and why this little-known fact is one of the biggest reasons for the widening wealth gap between the holders of capital and everybody else. In this revealing book, Katharina Pistor argues that the law selectively "codes" certain assets, endowing them with the capacity to protect and produce private wealth. With the right legal coding, any object, claim, or idea can be turned into capital - and lawyers are the keepers of the code. Pistor describes how they pick and choose among different legal systems and legal devices for the ones that best serve their clients' needs, and how techniques that were first perfected centuries ago to code landholdings as capital are being used today to code stocks, bonds, ideas, and even expectations--assets that exist only in law. A powerful new way of thinking about one of the most pernicious problems of our time, The Code of Capital explores the different ways that debt, complex financial products, and other assets are coded to give financial advantage to their holders. This provocative book paints a troubling portrait of the pervasive global nature of the code, the people who shape it, and the governments that enforce it."--Provided by publisher.
The term 'social capital' is a way of conceptualizing the intangible resources of community, shared values and trust upon which we draw in daily life. It has achieved considerable currency in the social sciences through the very different work of Bourdieu in France, and James Coleman and Robert Putnam in the States, and has been taken up within politics and sociology as a means of explaining the decline of social cohesion and community values in many Western societies. This concise introduction, the only one currently available, explains the theoretical underpinning of the subject, the empirical work that has been done to explore its operation, and the effect that it has had on policy-making particularly within such international governmental bodies as the World Bank and the European Commission. With genuine cross-disciplinary appeal, this exceptional book will be of great interest to students of sociology, politics and social policy.
For more than thirty years Nelson Lichtenstein has deployed his scholarship--on labor, politics, and social thought--to chart the history and prospects of a progressive America. A Contest of Ideas collects and updates many of Lichtenstein's most provocative and controversial essays and reviews. These incisive writings link the fate of the labor movement to the transformations in the shape of world capitalism, to the rise of the civil rights movement, and to the activists and intellectuals who have played such important roles. Tracing broad patterns of political thought, Lichtenstein offers important perspectives on the relationship of labor and the state, the tensions that sometimes exist between a culture of rights and the idea of solidarity, and the rise of conservatism in politics, law, and intellectual life. The volume closes with portraits of five activist intellectuals whose work has been vital to the conflicts that engage the labor movement, public policy, and political culture.
Learn from the Best Great leaders of innovation know that creativity is not enough. They succeed not only on the basis of their ideas, but because they have the vision, reputation, and networks to win the backing needed to commercialize them. It turns out that this quality--called "innovation capital"--is measurably more important for innovation than just being creative. The authors have spent decades studying how people get great ideas (the subject of The Innovator's DNA) and how people test and develop those ideas (explored in The Innovator's Method). Now they share what they've learned from a multipronged research program designed to determine how people compete for, and obtain, resources to launch new ideas: How you can build a personal reputation for innovation What techniques you can use to amplify your innovation capital How you can garner attention for your ideas and projects and persuade audiences to support them What it means to provide visionary leadership and how you can achieve it Featuring interviews with the superstars of innovation--individuals like Jeff Bezos (Amazon), Elon Musk (Tesla), Marc Benioff (Salesforce), Indra Nooyi (PepsiCo), and Shantanu Narayen (Adobe)--this book will help you position yourself and your ideas to compete for attention and resources so that you can launch innovations with impact.
