The Ascent of Money: A Financial History of the World

The Ascent of Money: A Financial History of the World is a 2008 nonfiction book by historian Niall Ferguson. As its title implies, the book covers the rise of money and financial systems (in the West) throughout history. Ferguson argues that some aspect of finance lies behind all great events in history and that financial innovation has been as important to progress as scientific and technological innovation.

Chapter 1 discusses the nature of money and the rise of banking and credit. Ferguson relates the history of the Spanish conquistadors and their defeat of the Incan Empire in the 16th century, resulting in Spain’s access to vast quantities of gold and silver for use as money. He then turns to the rise of credit in the 13th century and of banking in the following century, both in the city-states of northern Italy. Important innovations to the banking system made in northern Europe (the Netherlands, Sweden, and England) are discussed next. Ferguson ends the chapter with the evolution of banking in the UK and the US during the 19th and early 20th centuries.

Chapter 2 gives an overview of the rise and development of bonds; Chapter 3 does the same for stocks.