Debt, whether we like it or not, is a part of life and has been a part of finance for centuries. Banks have provided a convenient mechanism for debts to be exchanged, generally secured by other individuals or by governments to ensure that banks remained solvent. Paolo Zannoni’s Money & Promises: Seven Deals That Changed the World highlights seven examples when governments and finance came together.
Starting back in Italy, with merchants of Pisa, Venice, and Naples, before weaving the way to the early years of the Soviet Union, this book describes different innovations in finance that helped solve a critical problem facing a community, a nation, or its merchants and traders. Financial institutions throughout modern history often did not function like the brick and mortar bank you see today; however, their function (to help move capital or commerce) was as critical then as it is now.
Money & Promises is a great history of banking and finance. Zannoni’s instructiveness in explaining how debts are the real driver of exchange (and less so cold hard cash) through these seven different stories is effective, intelligent, and insightful.
MY RATING: 5