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Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965–2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980–2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965–2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980–2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965–2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980–2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965–2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980–2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

Spices were a global commodity centuries before European voyages. There was a complex chain of relations, yet consumers had little knowledge of producers and vice versa. Desire for spices helped fuel European colonial empires to create political, military and commercial networks under a single power.

Historians know a fair amount about the supply of spices in Europe during the medieval period – the origins, methods of transportation, the prices – but less about demand. Why go to such extraordinary efforts to procure expensive products from exotic lands? Still, demand was great enough to inspire the voyages of Christopher Columbus and Vasco Da Gama, launching the first fateful wave of European colonialism.

So, why were spices so highly prized in Europe in the centuries from about 1000 to 1500? One widely disseminated explanation for medieval demand for spices was that they covered the taste of spoiled meat.

Medieval purchasers consumed meat much fresher than what the average city-dweller in the developed world of today has at hand. However, refrigeration was not available, and some hot spices have been shown to serve as an anti-bacterial agent. Salting, smoking or drying meat were other means of preservation. Most spices used in cooking began as medical ingredients, and throughout the Middle Ages spices were used as both medicines and condiments. Above all, medieval recipes involve the combination of medical and culinary lore in order to balance food's humeral properties and prevent disease. Most spices were hot and dry and so appropriate in sauces to counteract the moist and wet properties supposedly possessed by most meat and fish.

Where spices came from was known in a vague sense centuries before the voyages of Columbus. Just how vague may be judged by looking at medieval world maps ... To the medieval European imagination, the East was exotic and alluring. Medieval maps often placed India close to the so-called Earthly Paradise, the Garden of Eden described in the Bible.

Geographical knowledge has a lot to do with the perceptions of spices' relative scarcity and the reasons for their high prices. An example of the varying notions of scarcity is the conflicting information about how pepper is harvested. As far back as the 7th century Europeans thought that pepper in India grew on trees "guarded" by serpents that would bite and poison anyone who attempted to gather the fruit. The only way to harvest pepper was to burn the trees, which would drive the snakes underground. Of course, this bit of lore would explain the shriveled black peppercorns, but not white, pink or other colors.

Spices never had the enduring allure or power of gold and silver or the commercial potential of new products such as tobacco, indigo or sugar. But the taste for spices did continue for a while beyond the Middle Ages. As late as the 17th century, the English and the Dutch were struggling for control of the Spice Islands: Dutch New Amsterdam, or New York, was exchanged by the British for one of the Moluccan Islands where nutmeg was grown.

Spices were a global commodity centuries before European voyages. There was a complex chain of relations, yet consumers had little knowledge of producers and vice versa. Desire for spices helped fuel European colonial empires to create political, military and commercial networks under a single power.

Historians know a fair amount about the supply of spices in Europe during the medieval period – the origins, methods of transportation, the prices – but less about demand. Why go to such extraordinary efforts to procure expensive products from exotic lands? Still, demand was great enough to inspire the voyages of Christopher Columbus and Vasco Da Gama, launching the first fateful wave of European colonialism.

So, why were spices so highly prized in Europe in the centuries from about 1000 to 1500? One widely disseminated explanation for medieval demand for spices was that they covered the taste of spoiled meat.

Medieval purchasers consumed meat much fresher than what the average city-dweller in the developed world of today has at hand. However, refrigeration was not available, and some hot spices have been shown to serve as an anti-bacterial agent. Salting, smoking or drying meat were other means of preservation. Most spices used in cooking began as medical ingredients, and throughout the Middle Ages spices were used as both medicines and condiments. Above all, medieval recipes involve the combination of medical and culinary lore in order to balance food's humeral properties and prevent disease. Most spices were hot and dry and so appropriate in sauces to counteract the moist and wet properties supposedly possessed by most meat and fish.

Where spices came from was known in a vague sense centuries before the voyages of Columbus. Just how vague may be judged by looking at medieval world maps ... To the medieval European imagination, the East was exotic and alluring. Medieval maps often placed India close to the so-called Earthly Paradise, the Garden of Eden described in the Bible.

Geographical knowledge has a lot to do with the perceptions of spices' relative scarcity and the reasons for their high prices. An example of the varying notions of scarcity is the conflicting information about how pepper is harvested. As far back as the 7th century Europeans thought that pepper in India grew on trees "guarded" by serpents that would bite and poison anyone who attempted to gather the fruit. The only way to harvest pepper was to burn the trees, which would drive the snakes underground. Of course, this bit of lore would explain the shriveled black peppercorns, but not white, pink or other colors.

Spices never had the enduring allure or power of gold and silver or the commercial potential of new products such as tobacco, indigo or sugar. But the taste for spices did continue for a while beyond the Middle Ages. As late as the 17th century, the English and the Dutch were struggling for control of the Spice Islands: Dutch New Amsterdam, or New York, was exchanged by the British for one of the Moluccan Islands where nutmeg was grown.

Spices were a global commodity centuries before European voyages. There was a complex chain of relations, yet consumers had little knowledge of producers and vice versa. Desire for spices helped fuel European colonial empires to create political, military and commercial networks under a single power.

Historians know a fair amount about the supply of spices in Europe during the medieval period – the origins, methods of transportation, the prices – but less about demand. Why go to such extraordinary efforts to procure expensive products from exotic lands? Still, demand was great enough to inspire the voyages of Christopher Columbus and Vasco Da Gama, launching the first fateful wave of European colonialism.

So, why were spices so highly prized in Europe in the centuries from about 1000 to 1500? One widely disseminated explanation for medieval demand for spices was that they covered the taste of spoiled meat.

Medieval purchasers consumed meat much fresher than what the average city-dweller in the developed world of today has at hand. However, refrigeration was not available, and some hot spices have been shown to serve as an anti-bacterial agent. Salting, smoking or drying meat were other means of preservation. Most spices used in cooking began as medical ingredients, and throughout the Middle Ages spices were used as both medicines and condiments. Above all, medieval recipes involve the combination of medical and culinary lore in order to balance food's humeral properties and prevent disease. Most spices were hot and dry and so appropriate in sauces to counteract the moist and wet properties supposedly possessed by most meat and fish.

Where spices came from was known in a vague sense centuries before the voyages of Columbus. Just how vague may be judged by looking at medieval world maps ... To the medieval European imagination, the East was exotic and alluring. Medieval maps often placed India close to the so-called Earthly Paradise, the Garden of Eden described in the Bible.

Geographical knowledge has a lot to do with the perceptions of spices' relative scarcity and the reasons for their high prices. An example of the varying notions of scarcity is the conflicting information about how pepper is harvested. As far back as the 7th century Europeans thought that pepper in India grew on trees "guarded" by serpents that would bite and poison anyone who attempted to gather the fruit. The only way to harvest pepper was to burn the trees, which would drive the snakes underground. Of course, this bit of lore would explain the shriveled black peppercorns, but not white, pink or other colors.

Spices never had the enduring allure or power of gold and silver or the commercial potential of new products such as tobacco, indigo or sugar. But the taste for spices did continue for a while beyond the Middle Ages. As late as the 17th century, the English and the Dutch were struggling for control of the Spice Islands: Dutch New Amsterdam, or New York, was exchanged by the British for one of the Moluccan Islands where nutmeg was grown.

Spices were a global commodity centuries before European voyages. There was a complex chain of relations, yet consumers had little knowledge of producers and vice versa. Desire for spices helped fuel European colonial empires to create political, military and commercial networks under a single power.

Historians know a fair amount about the supply of spices in Europe during the medieval period – the origins, methods of transportation, the prices – but less about demand. Why go to such extraordinary efforts to procure expensive products from exotic lands? Still, demand was great enough to inspire the voyages of Christopher Columbus and Vasco Da Gama, launching the first fateful wave of European colonialism.

So, why were spices so highly prized in Europe in the centuries from about 1000 to 1500? One widely disseminated explanation for medieval demand for spices was that they covered the taste of spoiled meat.

Medieval purchasers consumed meat much fresher than what the average city-dweller in the developed world of today has at hand. However, refrigeration was not available, and some hot spices have been shown to serve as an anti-bacterial agent. Salting, smoking or drying meat were other means of preservation. Most spices used in cooking began as medical ingredients, and throughout the Middle Ages spices were used as both medicines and condiments. Above all, medieval recipes involve the combination of medical and culinary lore in order to balance food's humeral properties and prevent disease. Most spices were hot and dry and so appropriate in sauces to counteract the moist and wet properties supposedly possessed by most meat and fish.

Where spices came from was known in a vague sense centuries before the voyages of Columbus. Just how vague may be judged by looking at medieval world maps ... To the medieval European imagination, the East was exotic and alluring. Medieval maps often placed India close to the so-called Earthly Paradise, the Garden of Eden described in the Bible.

Geographical knowledge has a lot to do with the perceptions of spices' relative scarcity and the reasons for their high prices. An example of the varying notions of scarcity is the conflicting information about how pepper is harvested. As far back as the 7th century Europeans thought that pepper in India grew on trees "guarded" by serpents that would bite and poison anyone who attempted to gather the fruit. The only way to harvest pepper was to burn the trees, which would drive the snakes underground. Of course, this bit of lore would explain the shriveled black peppercorns, but not white, pink or other colors.

Spices never had the enduring allure or power of gold and silver or the commercial potential of new products such as tobacco, indigo or sugar. But the taste for spices did continue for a while beyond the Middle Ages. As late as the 17th century, the English and the Dutch were struggling for control of the Spice Islands: Dutch New Amsterdam, or New York, was exchanged by the British for one of the Moluccan Islands where nutmeg was grown.

Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.

Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions.

It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—‘preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can't afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.

Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines... .This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.

Above all, we need politics and institutions. Shiller (the Nobel Prize–winning economist) connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller's account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.

Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.

Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions.

It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—‘preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can't afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.

Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines... .This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.

Above all, we need politics and institutions. Shiller (the Nobel Prize–winning economist) connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller's account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.

Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economic us. Becker was a picture of the imperial economist in the heyday of the discipline's bravura.

Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions.

It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—‘preferences,” in the neoclassical argot—that get revealed in the course of peoples' choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can't afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.

Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economic us doesn't always behave like the textbook maximizer; irrational behavior can't simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines... .This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.

Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller's account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.

Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economic us. Becker was a picture of the imperial economist in the heyday of the discipline's bravura.

Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions.

It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—‘preferences,” in the neoclassical argot—that get revealed in the course of peoples' choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can't afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.

Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economic us doesn't always behave like the textbook maximizer; irrational behavior can't simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines... .This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.

Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller's account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.

I've been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I've ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, "If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super- risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions." I was both right and too late, because all the groundwork for the crisis had already been done though the sluggishness of the world's governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what's happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about "the two cultures" of science and the arts we heard a particularly large amount

about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I'm not sure the idea of a huge gap between science and the arts is as true as it was half a century ago it's certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That's one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we've suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not and there are large parts of it that you would have to be crazy to like we're all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

I've been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I've ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, "If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super- risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions." I was both right and too late, because all the groundwork for the crisis had already been done though the sluggishness of the world's governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what's happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about "the two cultures" of science and the arts we heard a particularly large amount

about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I'm not sure the idea of a huge gap between science and the arts is as true as it was half a century ago it's certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That's one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we've suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not and there are large parts of it that you would have to be crazy to like we're all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

I've been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I've ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, "If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super- risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions." I was both right and too late, because all the groundwork for the crisis had already been done though the sluggishness of the world's governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what's happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about "the two cultures" of science and the arts we heard a particularly large amount

about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I'm not sure the idea of a huge gap between science and the arts is as true as it was half a century ago it's certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That's one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we've suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not and there are large parts of it that you would have to be crazy to like we're all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

I've been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I've ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, "If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super- risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions." I was both right and too late, because all the groundwork for the crisis had already been done though the sluggishness of the world's governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what's happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about "the two cultures" of science and the arts we heard a particularly large amount

about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I'm not sure the idea of a huge gap between science and the arts is as true as it was half a century ago it's certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That's one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we've suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not and there are large parts of it that you would have to be crazy to like we're all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

I've been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I've ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, "If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super- risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions." I was both right and too late, because all the groundwork for the crisis had already been done though the sluggishness of the world's governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what's happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about "the two cultures" of science and the arts we heard a particularly large amount

about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I'm not sure the idea of a huge gap between science and the arts is as true as it was half a century ago it's certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That's one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we've suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not and there are large parts of it that you would have to be crazy to like we're all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

In a low-carbon world, renewable energy technologies are hot business. For investors looking to redirect funds, wind turbines and solar panels, among other technologies, seem a straightforward choice. But renewables need to be further scrutinized before being championed as forging a path toward a low-carbon future. Both the direct and indirect impacts of renewable energy must be examined to ensure that a climate-smart future does not intensify social and environmental harm. As renewable energy production requires land, water, and labor, among other inputs, it imposes costs on people and the environment. Hydropower projects, for instance, have led to community dispossession and exclusion .Renewable energy supply chains are also intertwined with mining, and their technologies contribute to growing levels of electronic waste. Furthermore, although renewable energy can be produced and distributed through small-scale, local systems, such an approach might not generate the high returns on investment needed to attract capital.

Although an emerging sector, renewables are enmeshed in long-standing resource extraction through their dependence on minerals and metals. Scholars document the negative consequences of mining even for mining operations that commit to socially responsible practices[:] "many of the world's largest reservoirs of minerals like cobalt, copper, lithium, [and] rare earth minerals"—the ones needed for renewable technologies—"are found in fragile states and under communities of marginalized peoples in Africa, Asia, and Latin America. "Since the demand for metals and minerals will increase substantially in a renewable - powered future. This intensification could exacerbate the existing consequences of extractive activities.

Among the connections between climate change and waste, O'Neill highlights that "devices developed to reduce our carbon footprint, such as lithium batteries for hybrid and electric cars or solar panels, become potentially dangerous electronic waste at the end of their productive life." The disposal of toxic waste has long perpetuated social injustice through the flows of waste to the Global South and to marginalized communities in the Global North.

While renewable energy is a more recent addition to financial portfolios, investments in the sector must be considered in light of our understanding of capital accumulation. As agricultural finance reveals, the concentration of control of corporate activity facilitates profit generation. For some climate activists, the promise of renewables rests on their ability not only to reduce emissions but also to provide distributed, democratized access to energy .But Burke and Stephens caution that "renewable energy systems offer a possibility but nota certainty for more democratic energy futures." Small-scale, distributed forms of energy are only highly profitable to institutional investors if control is consolidated somewhere in the financial chain. Renewable energy can be produced at the household or neighborhood level. However, such small-scale, localized production is unlikely to generate high returns for investors. For financial growth to be sustained and expanded by the renewable sector, production and trade in renewable energy technologies will need to be highly concentrated, and large asset management firms will likely drive those developments.

In a low-carbon world, renewable energy technologies are hot business. For investors looking to redirect funds, wind turbines and solar panels, among other technologies, seem a straightforward choice. But renewables need to be further scrutinized before being championed as forging a path toward a low-carbon future. Both the direct and indirect impacts of renewable energy must be examined to ensure that a climate-smart future does not intensify social and environmental harm. As renewable energy production requires land, water, and labor, among other inputs, it imposes costs on people and the environment. Hydropower projects, for instance, have led to community dispossession and exclusion .Renewable energy supply chains are also intertwined with mining, and their technologies contribute to growing levels of electronic waste. Furthermore, although renewable energy can be produced and distributed through small-scale, local systems, such an approach might not generate the high returns on investment needed to attract capital.

Although an emerging sector, renewables are enmeshed in long-standing resource extraction through their dependence on minerals and metals. Scholars document the negative consequences of mining even for mining operations that commit to socially responsible practices[:] "many of the world's largest reservoirs of minerals like cobalt, copper, lithium, [and] rare earth minerals"—the ones needed for renewable technologies—"are found in fragile states and under communities of marginalized peoples in Africa, Asia, and Latin America. "Since the demand for metals and minerals will increase substantially in a renewable - powered future. This intensification could exacerbate the existing consequences of extractive activities.

Among the connections between climate change and waste, O'Neill highlights that "devices developed to reduce our carbon footprint, such as lithium batteries for hybrid and electric cars or solar panels, become potentially dangerous electronic waste at the end of their productive life." The disposal of toxic waste has long perpetuated social injustice through the flows of waste to the Global South and to marginalized communities in the Global North.

While renewable energy is a more recent addition to financial portfolios, investments in the sector must be considered in light of our understanding of capital accumulation. As agricultural finance reveals, the concentration of control of corporate activity facilitates profit generation. For some climate activists, the promise of renewables rests on their ability not only to reduce emissions but also to provide distributed, democratized access to energy .But Burke and Stephens caution that "renewable energy systems offer a possibility but nota certainty for more democratic energy futures." Small-scale, distributed forms of energy are only highly profitable to institutional investors if control is consolidated somewhere in the financial chain. Renewable energy can be produced at the household or neighborhood level. However, such small-scale, localized production is unlikely to generate high returns for investors. For financial growth to be sustained and expanded by the renewable sector, production and trade in renewable energy technologies will need to be highly concentrated, and large asset management firms will likely drive those developments.

In a low-carbon world, renewable energy technologies are hot business. For investors looking to redirect funds, wind turbines and solar panels, among other technologies, seem a straightforward choice. But renewables need to be further scrutinized before being championed as forging a path toward a low-carbon future. Both the direct and indirect impacts of renewable energy must be examined to ensure that a climate-smart future does not intensify social and environmental harm. As renewable energy production requires land, water, and labor, among other inputs, it imposes costs on people and the environment. Hydropower projects, for instance, have led to community dispossession and exclusion .Renewable energy supply chains are also intertwined with mining, and their technologies contribute to growing levels of electronic waste. Furthermore, although renewable energy can be produced and distributed through small-scale, local systems, such an approach might not generate the high returns on investment needed to attract capital.

Although an emerging sector, renewables are enmeshed in long-standing resource extraction through their dependence on minerals and metals. Scholars document the negative consequences of mining even for mining operations that commit to socially responsible practices[:] "many of the world's largest reservoirs of minerals like cobalt, copper, lithium, [and] rare earth minerals"—the ones needed for renewable technologies—"are found in fragile states and under communities of marginalized peoples in Africa, Asia, and Latin America. "Since the demand for metals and minerals will increase substantially in a renewable - powered future. This intensification could exacerbate the existing consequences of extractive activities.

Among the connections between climate change and waste, O'Neill highlights that "devices developed to reduce our carbon footprint, such as lithium batteries for hybrid and electric cars or solar panels, become potentially dangerous electronic waste at the end of their productive life." The disposal of toxic waste has long perpetuated social injustice through the flows of waste to the Global South and to marginalized communities in the Global North.

While renewable energy is a more recent addition to financial portfolios, investments in the sector must be considered in light of our understanding of capital accumulation. As agricultural finance reveals, the concentration of control of corporate activity facilitates profit generation. For some climate activists, the promise of renewables rests on their ability not only to reduce emissions but also to provide distributed, democratized access to energy .But Burke and Stephens caution that "renewable energy systems offer a possibility but nota certainty for more democratic energy futures." Small-scale, distributed forms of energy are only highly profitable to institutional investors if control is consolidated somewhere in the financial chain. Renewable energy can be produced at the household or neighborhood level. However, such small-scale, localized production is unlikely to generate high returns for investors. For financial growth to be sustained and expanded by the renewable sector, production and trade in renewable energy technologies will need to be highly concentrated, and large asset management firms will likely drive those developments.

In a low-carbon world, renewable energy technologies are hot business. For investors looking to redirect funds, wind turbines and solar panels, among other technologies, seem a straightforward choice. But renewables need to be further scrutinized before being championed as forging a path toward a low-carbon future. Both the direct and indirect impacts of renewable energy must be examined to ensure that a climate-smart future does not intensify social and environmental harm. As renewable energy production requires land, water, and labor, among other inputs, it imposes costs on people and the environment. Hydropower projects, for instance, have led to community dispossession and exclusion .Renewable energy supply chains are also intertwined with mining, and their technologies contribute to growing levels of electronic waste. Furthermore, although renewable energy can be produced and distributed through small-scale, local systems, such an approach might not generate the high returns on investment needed to attract capital.

Although an emerging sector, renewables are enmeshed in long-standing resource extraction through their dependence on minerals and metals. Scholars document the negative consequences of mining even for mining operations that commit to socially responsible practices[:] "many of the world's largest reservoirs of minerals like cobalt, copper, lithium, [and] rare earth minerals"—the ones needed for renewable technologies—"are found in fragile states and under communities of marginalized peoples in Africa, Asia, and Latin America. "Since the demand for metals and minerals will increase substantially in a renewable - powered future. This intensification could exacerbate the existing consequences of extractive activities.

Among the connections between climate change and waste, O'Neill highlights that "devices developed to reduce our carbon footprint, such as lithium batteries for hybrid and electric cars or solar panels, become potentially dangerous electronic waste at the end of their productive life." The disposal of toxic waste has long perpetuated social injustice through the flows of waste to the Global South and to marginalized communities in the Global North.

While renewable energy is a more recent addition to financial portfolios, investments in the sector must be considered in light of our understanding of capital accumulation. As agricultural finance reveals, the concentration of control of corporate activity facilitates profit generation. For some climate activists, the promise of renewables rests on their ability not only to reduce emissions but also to provide distributed, democratized access to energy .But Burke and Stephens caution that "renewable energy systems offer a possibility but nota certainty for more democratic energy futures." Small-scale, distributed forms of energy are only highly profitable to institutional investors if control is consolidated somewhere in the financial chain. Renewable energy can be produced at the household or neighborhood level. However, such small-scale, localized production is unlikely to generate high returns for investors. For financial growth to be sustained and expanded by the renewable sector, production and trade in renewable energy technologies will need to be highly concentrated, and large asset management firms will likely drive those developments.

In a low-carbon world, renewable energy technologies are hot business. For investors looking to redirect funds, wind turbines and solar panels, among other technologies, seem a straightforward choice. But renewables need to be further scrutinized before being championed as forging a path toward a low-carbon future. Both the direct and indirect impacts of renewable energy must be examined to ensure that a climate-smart future does not intensify social and environmental harm. As renewable energy production requires land, water, and labor, among other inputs, it imposes costs on people and the environment. Hydropower projects, for instance, have led to community dispossession and exclusion .Renewable energy supply chains are also intertwined with mining, and their technologies contribute to growing levels of electronic waste. Furthermore, although renewable energy can be produced and distributed through small-scale, local systems, such an approach might not generate the high returns on investment needed to attract capital.

Although an emerging sector, renewables are enmeshed in long-standing resource extraction through their dependence on minerals and metals. Scholars document the negative consequences of mining even for mining operations that commit to socially responsible practices[:] "many of the world's largest reservoirs of minerals like cobalt, copper, lithium, [and] rare earth minerals"—the ones needed for renewable technologies—"are found in fragile states and under communities of marginalized peoples in Africa, Asia, and Latin America. "Since the demand for metals and minerals will increase substantially in a renewable - powered future. This intensification could exacerbate the existing consequences of extractive activities.

Among the connections between climate change and waste, O'Neill highlights that "devices developed to reduce our carbon footprint, such as lithium batteries for hybrid and electric cars or solar panels, become potentially dangerous electronic waste at the end of their productive life." The disposal of toxic waste has long perpetuated social injustice through the flows of waste to the Global South and to marginalized communities in the Global North.

While renewable energy is a more recent addition to financial portfolios, investments in the sector must be considered in light of our understanding of capital accumulation. As agricultural finance reveals, the concentration of control of corporate activity facilitates profit generation. For some climate activists, the promise of renewables rests on their ability not only to reduce emissions but also to provide distributed, democratized access to energy .But Burke and Stephens caution that "renewable energy systems offer a possibility but nota certainty for more democratic energy futures." Small-scale, distributed forms of energy are only highly profitable to institutional investors if control is consolidated somewhere in the financial chain. Renewable energy can be produced at the household or neighborhood level. However, such small-scale, localized production is unlikely to generate high returns for investors. For financial growth to be sustained and expanded by the renewable sector, production and trade in renewable energy technologies will need to be highly concentrated, and large asset management firms will likely drive those developments.

Few realise that the government of China, governing an empire of some $60$ million people during the Tang dynasty (618-907), implemented a complex financial system that recognized grain, coins and textiles as money. Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions. However, there were also disadvantages. A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynasty's history, coins constituted only a tenth of the money supply. One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grain the other two major currencies of the Tang would not be able to produce coins, and therefore would not be able to pay their taxes.

As coins had advantages and disadvantages, so too did textiles. If in circulation for a long period of time, they could show signs of wear and tear. Stained, faded and torn bolts of textiles had less value than a brand new bolt. Furthermore, a full bolt had a particular value. If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles. Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not "be exchanged by the foot and the inch".

But textiles had some advantages over coins. For a start, textile production was widespread and there were fewer problems with the supply of textiles. For large transactions, textiles weighed less than their equivalent in coins since a string of coins. could weigh as much as $4 \mathrm{~kg}$. Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: $56 \mathrm{~cm}$ wide and $12 \mathrm{~m}$ long. The values of different textiles were also more stable than the fluctuating values of coins.

The government also required the use of textiles for large transactions. Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage. Grain, because it rotted easily, was not used nearly as much as coins and textiles, but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain.

In actuality, our own currency system today has some similarities even as it is changing in front of our eyes. We have cash coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments. At the same time, we are shifting to electronic banking and making payments online. Some young people never use cash and do not know how to write a cheque.

Few realise that the government of China, governing an empire of some $60$ million people during the Tang dynasty (618-907), implemented a complex financial system that recognized grain, coins and textiles as money. Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions. However, there were also disadvantages. A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynasty's history, coins constituted only a tenth of the money supply. One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grain the other two major currencies of the Tang would not be able to produce coins, and therefore would not be able to pay their taxes.

As coins had advantages and disadvantages, so too did textiles. If in circulation for a long period of time, they could show signs of wear and tear. Stained, faded and torn bolts of textiles had less value than a brand new bolt. Furthermore, a full bolt had a particular value. If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles. Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not "be exchanged by the foot and the inch".

But textiles had some advantages over coins. For a start, textile production was widespread and there were fewer problems with the supply of textiles. For large transactions, textiles weighed less than their equivalent in coins since a string of coins. could weigh as much as $4 \mathrm{~kg}$. Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: $56 \mathrm{~cm}$ wide and $12 \mathrm{~m}$ long. The values of different textiles were also more stable than the fluctuating values of coins.

The government also required the use of textiles for large transactions. Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage. Grain, because it rotted easily, was not used nearly as much as coins and textiles, but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain.

In actuality, our own currency system today has some similarities even as it is changing in front of our eyes. We have cash coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments. At the same time, we are shifting to electronic banking and making payments online. Some young people never use cash and do not know how to write a cheque.

Few realise that the government of China, governing an empire of some $60$ million people during the Tang dynasty (618-907), implemented a complex financial system that recognized grain, coins and textiles as money. Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions. However, there were also disadvantages. A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynasty's history, coins constituted only a tenth of the money supply. One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grain the other two major currencies of the Tang would not be able to produce coins, and therefore would not be able to pay their taxes.

As coins had advantages and disadvantages, so too did textiles. If in circulation for a long period of time, they could show signs of wear and tear. Stained, faded and torn bolts of textiles had less value than a brand new bolt. Furthermore, a full bolt had a particular value. If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles. Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not "be exchanged by the foot and the inch".

But textiles had some advantages over coins. For a start, textile production was widespread and there were fewer problems with the supply of textiles. For large transactions, textiles weighed less than their equivalent in coins since a string of coins. could weigh as much as $4 \mathrm{~kg}$. Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: $56 \mathrm{~cm}$ wide and $12 \mathrm{~m}$ long. The values of different textiles were also more stable than the fluctuating values of coins.

The government also required the use of textiles for large transactions. Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage. Grain, because it rotted easily, was not used nearly as much as coins and textiles, but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain.

In actuality, our own currency system today has some similarities even as it is changing in front of our eyes. We have cash coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments. At the same time, we are shifting to electronic banking and making payments online. Some young people never use cash and do not know how to write a cheque.

Few realise that the government of China, governing an empire of some $60$ million people during the Tang dynasty (618-907), implemented a complex financial system that recognized grain, coins and textiles as money. Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions. However, there were also disadvantages. A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynasty's history, coins constituted only a tenth of the money supply. One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grain the other two major currencies of the Tang would not be able to produce coins, and therefore would not be able to pay their taxes.

As coins had advantages and disadvantages, so too did textiles. If in circulation for a long period of time, they could show signs of wear and tear. Stained, faded and torn bolts of textiles had less value than a brand new bolt. Furthermore, a full bolt had a particular value. If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles. Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not "be exchanged by the foot and the inch".

But textiles had some advantages over coins. For a start, textile production was widespread and there were fewer problems with the supply of textiles. For large transactions, textiles weighed less than their equivalent in coins since a string of coins. could weigh as much as $4 \mathrm{~kg}$. Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: $56 \mathrm{~cm}$ wide and $12 \mathrm{~m}$ long. The values of different textiles were also more stable than the fluctuating values of coins.

The government also required the use of textiles for large transactions. Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage. Grain, because it rotted easily, was not used nearly as much as coins and textiles, but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain.

In actuality, our own currency system today has some similarities even as it is changing in front of our eyes. We have cash coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments. At the same time, we are shifting to electronic banking and making payments online. Some young people never use cash and do not know how to write a cheque.

Do sports mega events like the summer Olympic Games benefit the host city economically? It depends, but the prospects are less than rosy. The trick is converting several billion dollars in operating costs during the 17-day fiesta of the Games into a basis for long-term economic returns. These days, the summer Olympic Games themselves generate total revenue of $4 billion to$5 billion, but the lion's share of this goes to the International Olympics Committee, the National Olympics Committees and the International Sports Federations. Any economic benefit would have to flow from the value of the Games as an advertisement for the city, the new transportation and communications infrastructure that was created for the Games, or the ongoing use of the new facilities.

Evidence suggests that the advertising effect is far from certain. The infrastructure benefit depends on the initial condition of the city and the effectiveness of the planning. The facilities benefit is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000 seat Olympic stadiums. The latter require a conversion plan for future use, the former are usually doomed to near vacancy. Hosting the summer Games generally requires $30$ plus sports venues and dozens oftraining centers. Today, the Bird's Nest in Beijing sits virtually empty, while the Olympic Stadium in Sydney costs some $30 million a year to operate.

Part of the problem is that Olympics planning takes place in a frenzied and time pressured atmosphere of intense competition with the other prospective host cities not optimal conditions for contemplating the future shape of an urban landscape. Another part of the problem is that urban land is generally scarce and growing scarcer. The new facilities often stand for decades or longer. Even if they have future use, are they the best use of precious urban real estate?

Further, cities must consider the human cost. Residential areas often are razed and citizens relocated (without adequate preparation or compensation). Life is made more hectic and congested. There are, after all, other productive uses that can be made of vanishing fiscal resources.

Do sports mega events like the summer Olympic Games benefit the host city economically? It depends, but the prospects are less than rosy. The trick is converting several billion dollars in operating costs during the 17-day fiesta of the Games into a basis for long-term economic returns. These days, the summer Olympic Games themselves generate total revenue of $4 billion to$5 billion, but the lion's share of this goes to the International Olympics Committee, the National Olympics Committees and the International Sports Federations. Any economic benefit would have to flow from the value of the Games as an advertisement for the city, the new transportation and communications infrastructure that was created for the Games, or the ongoing use of the new facilities.

Evidence suggests that the advertising effect is far from certain. The infrastructure benefit depends on the initial condition of the city and the effectiveness of the planning. The facilities benefit is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000 seat Olympic stadiums. The latter require a conversion plan for future use, the former are usually doomed to near vacancy. Hosting the summer Games generally requires $30$ plus sports venues and dozens oftraining centers. Today, the Bird's Nest in Beijing sits virtually empty, while the Olympic Stadium in Sydney costs some $30 million a year to operate.

Part of the problem is that Olympics planning takes place in a frenzied and time pressured atmosphere of intense competition with the other prospective host cities not optimal conditions for contemplating the future shape of an urban landscape. Another part of the problem is that urban land is generally scarce and growing scarcer. The new facilities often stand for decades or longer. Even if they have future use, are they the best use of precious urban real estate?

Further, cities must consider the human cost. Residential areas often are razed and citizens relocated (without adequate preparation or compensation). Life is made more hectic and congested. There are, after all, other productive uses that can be made of vanishing fiscal resources.

Do sports mega events like the summer Olympic Games benefit the host city economically? It depends, but the prospects are less than rosy. The trick is converting several billion dollars in operating costs during the 17-day fiesta of the Games into a basis for long-term economic returns. These days, the summer Olympic Games themselves generate total revenue of $4 billion to$5 billion, but the lion's share of this goes to the International Olympics Committee, the National Olympics Committees and the International Sports Federations. Any economic benefit would have to flow from the value of the Games as an advertisement for the city, the new transportation and communications infrastructure that was created for the Games, or the ongoing use of the new facilities.

Evidence suggests that the advertising effect is far from certain. The infrastructure benefit depends on the initial condition of the city and the effectiveness of the planning. The facilities benefit is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000 seat Olympic stadiums. The latter require a conversion plan for future use, the former are usually doomed to near vacancy. Hosting the summer Games generally requires $30$ plus sports venues and dozens oftraining centers. Today, the Bird's Nest in Beijing sits virtually empty, while the Olympic Stadium in Sydney costs some $30 million a year to operate.

Part of the problem is that Olympics planning takes place in a frenzied and time pressured atmosphere of intense competition with the other prospective host cities not optimal conditions for contemplating the future shape of an urban landscape. Another part of the problem is that urban land is generally scarce and growing scarcer. The new facilities often stand for decades or longer. Even if they have future use, are they the best use of precious urban real estate?

Further, cities must consider the human cost. Residential areas often are razed and citizens relocated (without adequate preparation or compensation). Life is made more hectic and congested. There are, after all, other productive uses that can be made of vanishing fiscal resources.