Why It Matters
Chancellor traces the long story of interest — the oldest financial invention — and how its manipulation shapes every boom and bust.
He argues that cheap money distorts risk, rewards speculation, and ultimately weakens the productive core of an economy.
It’s a sweeping history that connects central banking decisions to human behavior and asset prices.
Core Ideas
- Interest is the price of time — it measures impatience and opportunity cost.
- Prolonged low rates create moral hazard and malinvestment.
- Easy money fuels inequality and fragility, not sustainable growth.
Investor Lens
The book reminds us that cycles begin in policy and end in psychology.
When capital is free, discipline vanishes — and the correction that follows is always painful.
Chancellor’s warning is not anti-progress, it’s pro-prudence: time always reasserts its price.