The Death of Money: How the Electronic Economy Has Destabilized the World's Markets and Created Financial Chaos

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Simon & Schuster, 1993 - Business & Economics - 256 pages
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"Ever wonder why today's corporate leaders can't seem to plan for the long term? Why government can't control inflation? Why the stock market is more volatile than ever? Why interest rates rise and fall like the tides? Why economic forecasts never seem to be right? In The Death of Money, Joel Kurtzman, an economist and business columnist for The New York Times, brilliantly and convincingly argues that economic stability and a rapid rate of growth, once America's hallmarks, have been lost because the fundamental nature of money has changed." "Money - in the traditional sense - died two decades ago with a single stroke of Richard Nixon's presidential pen. What followed was twenty years of a new economic disorder that began with soaring oil, gold, and real estate prices and continued with an unprecedented consumption binge by government agencies and the citizenry alike. In the twenty years of chaos, we've seen the savings and loan industry collapse, the banking system become weaker, eclipsed by the economy of finance, and an entirely new global medium of exchange created that Kurtzman calls "megabyte money."" "Most economists, Kurtzman argues, still don't know what - or how - it all happened." "Megabyte money is different from anything that has preceded it - and from the money jingling in your pocket or purse. It is part of an intricate and fragile electronic system of truly global dimensions and of amazing complexity. It is a nonstop, seven-day-a-week, 24-hour network that links tens of thousands of computers in places as lofty as the Federal Reserve and the Tokyo Stock Exchange and as lowly as the automated gasoline pump that accepts credit cards." "Megabyte money has created an entirely new global economy, one which, Kurtzman warns, is still largely unregulated, where government agencies, including the Federal Reserve and the Treasury, have ceded much power to the world's bankers, speculators, corporate treasurers, financiers, and computer programmers." "In The Death of Money, Kurtzman vividly explains how this new megabyte economy enables brokers to electronically bundle up your home mortgage with dozens of others, convert them into jumbo securities like a bond, and sell those securities to investors in Germany or Japan. In the new megabyte economy, Nobel Prize-winning equations are programmed into the computers at mutual fund companies, and mathematicians, physicists, and even rocket scientists are replacing the stock pickers of the past." "In the megabyte economy, money is nothing more than the "1's" and "0's" of the computer's code. Moving instantly along electronic highways, $1.9 trillion changes hands each day in New York alone. Information - even wrong or incomplete information - instantly affects prices around the world." "The death of money has created a strange new world most people have little knowledge of. It is a world that is far more volatile and chaotic than anything that has preceded it. Though this new world economic order evolved without a plan, Kurtzman warns that efficient new mechanisms must now be put into place to bring the economy under control. If we do so, he says, the vast, productive resources of our nation can again serve our needs."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved

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Review: The Death of Money: How the Electronic Economy Has Destabilized the World's Markets and Created Financial Chaos

User Review  - Larry Johnson - Goodreads

I read this for an Economics class back in 1996. The way the economy continues to change and with online payment sites such as Paypal the book is a must read for current economic students or those ... Read full review

Review: The Death of Money: How the Electronic Economy Has Destabilized the World's Markets and Created Financial Chaos

User Review  - Rob - Goodreads

Written soon after the Wall Street crash of 1987, the book explores the new economy which may have brought it on. The author begins with Nixon's decision to abandon the gold standard. That lead to the ... Read full review


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About the author (1993)

JOEL KURTZMAN is Global Lead Partner for Thought Leadership at PricewaterhouseCoopers, the world's largest professional services firm. He is the former editor of the Harvard Business Review and of Strategy & Business and a former columnist at The New York Times. Kurtzman is the author of sixteen books, including The Death of Money, and has consulted to some of the world's largest companies.
GLENN RIFKIN is the coauthor of Radical Marketing: From Harvard to Harley, Lessons from Ten That Broke the Rules and Made It Big. He is a veteran business journalist, business commentator, and sought-after speaker who spent nearly a decade reporting and writing for The New York Times.

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