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FERGUSON, N. 2008. The ascent of money: A financial history of the world. New York: Penguin Press. 358 pp. text and 80pp. notes and index. ISBN-13: 978-0143116177 S29.95
"Politicians, central bankers and businessmen regularly lament the extent of public ignorance about money, and with good reason. A society that expects most individuals to take responsibility for the management of their own expenditure and income after tax, that expects most adults to own their own homes and that leaves it to the individual to determine how much to save for retirement and whether or not to take out health insurance, is surely stirring up trouble for the future by leaving its citizens so ill-equipped to make wise financial decisions" (Ferguson, 2008, p. 12).
The extent of American and British financial illiteracy has been documented by several surveys, most aimed at high school students, but some have included college students and adults. As an example, in a 2007 survey, 29% of American credit card holders did not know the interest rate charged on their unpaid balance, and 30% thought it was below 10%. More than 50% of respondents claimed to have learned "not too much" or "nothing at all" about financial issues at school. In my experience, most college seniors exhibit these knowledge gaps, and even economics majors are guilty, although to a lesser extent than the remainder of the Arts and Sciences body. Ferguson's book is aimed at filling these gaps, particularly in light of the current financial crisis.
The book is excellent, as are previous books by this author, although the present...