The Price of Money

The authors of this short and thought-provoking book explain how economists weigh up the complex forces that determine global savings and investment and ultimately, the real interest rate. Look out for the effects of debt, heat, robots, and war that they forecast will push up the ‘price of money’. * Wendy Carlin, Professor of Economics, University College London *There is no more important price than the long-term rate of interest. It has been falling for almost half a century, easing the burden of debt. The Price of Money explains why and predicts a reversal with profound effects for our finances, our societies, and our futures on the planet. You do not have to agree with every assumption in this comprehensive account, but you need to think about the consequences. * Chris Giles, Economics Commentator, Financial Times *Incisive examination of why the natural rate of interest matters, its main drivers, and where it’s headed-required reading for anyone who is a serious investor. * Bill Dudley, Bloomberg Opinion columnist, former President of the Federal Reserve Bank of New York *The natural rate of interest is hugely important as a North Star for the economy but frustratingly impossible to observe. This clear and concise book sheds light on it with a mixture of history, modeling, and analysis. The authors make a compelling case that the natural rate is headed higher, creating new challenges for investors, governments, and companies. Reading this will help to prepare them. * Simon Rabinovitch, US Economics Editor, The Economist *

Jamie Rush is Chief European Economist for Bloomberg Economics, based in London. He has previously worked at the British Treasury, the New Zealand Treasury, and the UK Office for Budget Responsibility. He holds a PhD in economics from the University of Sheffield.

Tom Orlik is Chief Economist for Bloomberg Economics, based in Washington DC. Previously, Orlik was the Chief Asia economist for Bloomberg and China economics correspondent for The Wall Street Journal, based in Beijing. Prior to a decade in China, he worked at the British Treasury, European Commission, and International Monetary Fund. He is the author of Understanding China’s Economic Indicators and China: The Bubble that Never Pops.

Stephanie Flanders is global head of Economics and Government at Bloomberg News and Research, based in London. She was previously Chief Market Strategist for Europe at JP Morgan Asset Management and Economics Editor at the BBC. She has also served as Senior Advisor to US Treasury Secretary Lawrence H. Summers, and worked at the New York Times, Financial Times, Institute for Fiscal Studies, and London Business School. She is an Honorary Fellow of BalliolCollege, Oxford and a Fellow of the Society of Professional Economists.