Why is Economic History Important?

I'm passionate about economic history. I believe that if we want to understand today's world and economy, we need to know the evolution and trajectory of the economy. In addition, our economic past provides us with useful policy lessons for our economic present and future. Finally, economic history has an intrinsic value in and of itself - I'm constantly fascinated about how our ancestors approached economic issues and solved complex economic contracting issues.

My passion for economic history is one of the reasons that I founded the Queen's University Centre for Economic History (QUCEH), which has in turn attracted amazing young academics to Queen's University Belfast. At QUCEH, we are continually thinking of ways of demonstrating the usefulness of economic history to wider society. This week two things demonstrated our commitment to this cause. First, QUCEH entered the Twitterverse - please follow us at @QUCEHBelfast. Second, we discovered that my colleague Graham Brownlow's work on DeLorean was cited extensively in a Wall Street Journal article - click here.

Image result for delorean graham brownlow

Bitcoin Bubble?

According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .

Finance: Past, Present and Future

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