A Financial History of the World - Book Report/Review Example

A Financial History of the World Introduction Currency has been changing with time affecting the operations of the businesspersons. The book, “The Ascent of Money: A Financial History of the Wold comes out with its objective being to determine the causes of inflation and consequences of change of money. Further, it explores other methods that businesspersons use to devalue cash in note form. The book shows a comparison of paper and iron, a denotation of how money comes into existence. The purpose of the writing is to bring out these obstacles leading to valuation and devaluation of currency. The author full name, Niall Campbell Douglas Ferguson, is a Scotland resident born in 1964. He is a history professor at Harvard University, and a leading researcher of Jesus College an Oxford University branch. In addition, his specialization was on similar fields, which are worldwide and financial history. He brings out a connection between inflation and the prevailing market status and extending of power that British government has over the rule of influence. Niall’s qualifications come through the various books he has been writing. Some of his books are-The Empire, and The West and the Rest. Finally, he is a contributor to several television programmes and a writer to the newsweekly. This article reveals the messages of the book and an achievement in letting the citizens beware of the main causes of change in currency. The book aims at bringing out the different causes and consequences relating to the valuation of cash. As per the statement of the aim of the article, Ferguson tries to show the gradual advancement of the currency. People have upheaval actions to accept and understand the rising value of money. The author strains to bring it out even tough some get the understanding. He indicates how lenders and borrowers find it hard to carry out a smooth transaction. They lack the basic knowledge of the finance they have to attach to various items. In business institutions, financial superiors need to balance the equations and ensure they do not pay more than the income. They should ensure they operate at a surplus and should as much as possible to avoid deficits in their financial statements. However, many obstacles arise in their (businesspersons) trial to get some of the causes hindering a clear study of the subject matter. In as much as Niall tries to educate the businesspersons on the dangers of cash, there is prevailing ignorance on both customers and lenders. Inflation being one of the changes which customers observe resulting from devaluation of currency. The author fails to achieve his objective due to the political constraints in the countries (Ferguson Np). The increase in price of commodities and an adverse rise in salaries lead to a low purchase. This leads to a decrease in the sales and hence low profits. Ignorance of the possible effects of money by the business operators leads to slow addressing opinions on how to make the currency earn more value. Therefore, the truth is that the author does not achieve his purpose as he states that they keep on debating on who wishes to end inflation and stop uprising issues. There are no clear conclusions on the development of money. This is because the author keeps on talking much about the how currency has been changing since earlier days. He suggests measures that businesspersons need to consider when carrying out the business operations. In the book, are the various people who face the effects of inflation. There are no specific groups to get to know much about devaluation as the effect is on the whole economy. However, much effect is on the financial institutions, where the managers have the burden of ensuring they operate to maximise profits and no deficit. Cash has to gain and lose value despite the managers’ efforts to a constant value on money (Ferguson Np). They require unique skills in their day-to-day business operations. Further, the book reveals some of the suggestions to help eradicate inflation. In this, he states that a fight against poverty, is the central reason leading to the difference in status of the citizens. The truth behind the author’s work is that, among other things, the depiction of unfairness is high. He puts the blame on poverty as the main reason hindering money from acquiring reasonable value. In addition, there are specific persons whom according to him suffer from the change in currency. Further, suggestions to improve the businesses are for those who face these changes. Lastly, he fails to bring out the morals of the unlawful business vendors. Instead, he should give a solution to everyone as the valuation and devaluation of currency is on everyone including those at work and those, not at work. The author, Niall, had several reasons of writing the book, “Ascent of Money”. He has been attained education in different institutions and making him have qualifications to write books. His inspiration on writing this book was due to the rising changes that money has. To him, money is the key factor for smooth business operations. The author’s knowledge on how money may negatively affect a business gives him the motive to sketch out ways of avoiding inflation. The rise in price of commodities and an unfavourable increase in income generating activities call for a change in the business operations. This may also result to the closure of the business organizations. To solve this, there needs to be the use of various tactics that help reduce inflation. My opinion concerning the content of the book is that it requires several changes. Among these changes, businesspersons need to acquire basic knowledge on running their businesses. Second, finance managers should keep quality records concerning the financial positions of their organizations. Honesty in payment and adjustments on the remuneration of the employees is essential in ensuring a better way of distributing the income of the organization. This helps avoid deficits in the income accounts. It also gives support to the formulation of a financial plan. Lastly, the readers need to know that inflation effect is on everyone. Regardless of the reasons in the above statements, my attitude on the book is very positive. The book is very educative, and hence businesspersons should read the copy. This is because it (book) contains information, which helps implant more knowledge on the dangers of inflation. In addition, it ensures that persons avoid poor generating operations and aids in the maximization of profits. From the book, we learn that controlling the economic situation is important in controlling the value of currency. The changing in currency is on everyone. Therefore, it is worth noting that this knowledge should be to all businesspersons. In addition, students aspiring to be future business entrepreneurs also require the same knowledge. Instructors should ensure they impart information on the valuation and devaluation of money to such students. The preparation on the devaluation of currency is necessary as it makes the operators have early preparations to the stand of their businesses. Currency keeps on changing with change in the prevailing economic status (Ferguson Np). Work cited Ferguson, Niall. The Ascent of Money: A Financial History of the World. New York: Penguin Press, 2008. Print. Read More