House of Debt on the Independent’s Best of 2014
Atif Mian and Amir Sufi’s House of Debt, a polemic about the Great Recession and a call to action about the borrowing and lending practices that led us down the fiscal pits, already made a splash on the shortlist for the Financial Times‘s Best Business Book of 2014. Now, over at the Independent, the book tops another Best of 2014 list, this time proclaimed, “the jewel of 2014.” From Ben Chu’s review, which also heralds another university press title—HUP’s blockbuster Capital by Thomas Piketty (“the asteroid”):
As with Capital, House of Debt rests on some first-rate empirical research. Using micro data from America, the professors show that the localities where the accumulation of debt by households was the most rapid were also the areas that cut back on spending most drastically when the bubble burst. Mian and Sufi argue that policymakers across the developed world have had the wrong focus over the past half decade. Instead of seeking to restore growth by encouraging bust banks to lend, they should have been writing down household debts. If the professors are correct—and the evidence they assemble is powerful indeed—this work will take its place in the canon of literary economic breakthroughs.
We’ve blogged about the book previously here and here, and no doubt it will appear on more “Best of” lists for business and economics—it’s a read with teeth and legs, and the ostensible advice it offers to ensure we avoid future crises, points its fingers at criminal lending practices, greedy sub-prime investments, and our failure to share—financially and conceptually—risk-taking in our monetary practices.
You can read more about House of Debt here.