New Book Reviews Available Now

The Central Bank of Barbados Book Review Series seeks to highlight publications which offer useful insights and analysis on topics related to finance, economic development, and other issues relevant to small island developing economies. The views expressed are those of the author(s) and do not necessarily represent those of the Central Bank of Barbados

Global Inequality: A New Approach for the Age of Globalization – Review by Onoh-Obasi Okey

The first chapter assesses the nature of global inequality across countries by examining changes in real per capita income relative to global income. Between 1988 and 2008, referred to as the “high globalisation era”, people earning around the median of global income1 experienced the fastest growth in real income per capita. This group represents approximately one-fifth of the global population, comprising mainly the middle class of developing Asian economies, such as Indonesia, India and China, the “emerging global middle class.”

Banking Beyond Banks and Money: A Guide to Banking Services in the Twenty-First Century – Review by Quinn Weekes

The book is presented as a collection of essays discussing the new banking and money transfer models, and also addressing challenges and threats faced with said models. Among the topics covered are peer-to-peer lending, crowdfunding and bank vulnerabilities, using mobile money and blockchain technology for remittances and the boundaries of a self-organised economy. In essence, it provides a new perspective on economic models which move the field from describing monetary flows to understanding complex social processes that underlie the dynamics of the economy.

Shadow Banking: The Rise, Risks, and Rewards of Non-Bank Financial Services – Review by Lauren Cato

The author, Mr. Roy Girasa, uses his legal expertise to expertly provide the reader with a comprehensive and comparative view of the regulations that govern both the traditional and shadow banking industries. The book is divided into three sections, the first of which delves into traditional banking as well as the Dodd-Frank Act and its impact. Part two examines shadow banking and its risks while part three explores the opinions, efforts and recommendations of several reputable international institutions and concludes with a discussion of possible future developments.

Twilight of the Money Gods: Economics as a Religion and How it All Went Wrong – Review by Avinash Persaud

In his brilliantly titled “Twilight of the Money Gods” published by Simon Schuster earlier this year, John Rapley prosecutes the case that economics is a religion, not a science. He argues that much of what counts as economic theory is doctrine, supported by a story or belief, not evidence. Economists would counter, that they follow Karl Popper’s philosophy of science. They establish hypotheses and use data to refute them. Economists cast away refuted theories and add to the canon of theory those validated by the data.