Terry Pratchett on the Economy: a Review of Making Money
Terry Pratchett’s Making Money is a delightful book, and perhaps the best written analysis of the economy I have ever read. Certainly, it’s the funniest.
Image by Adrian Tysoe
In late 2008 and early 2009, David Brooks wrote several articles arguing that our economy is based on trust and, that until we get the psychology of money right we won’t get out of the right, we won’t get out of this Recession. For an op-ed columnist and even for an economist, this was very perceptive. But really, all David Brooks was doing was agreeing with Terry Pratchett, whose book on the same subject, Making Money, was first published in September 2007.
The plot of the story—as is typical of most Pratchett novels—is made up of an incredible number of loose ends that somehow arrange themselves into a tapestry by the final page. Moist von Lipwig, the ‘hero’ Pratchett fans will remember from Going Postal, is bored. And Lord Vetinari, Ankh-Morpokh’s brilliant (and occasionally humane) tyrant, picks Moist to create a financial system for his city. Of course Lord Vetinari does not make Moist the manager of the City’s Bank; the Lavish Matriarch does that.
The old lady interviews Moist, likes him, and when she dies she leaves her dog, Mr. Fusspot, 51% of the shares in the Bank and leaves Mr. Moist to either care for her dog and receive $20,000 per year or face the Guild of Assassins. Moist von Lipwig is thus well and truly stuck. He must create a financial system for Ankh-Morpokh, deal with the Lavishes, his past, his fiancé, lecherous undead, a golem who has a crush on him, and the Watch. And that’s on a slow day.
But as he juggles more balls than have a right to exist, Moist von Lipwig offers us crucial insights into what makes the economy work. People will pay $50 for $1 if they believe that one dollar note to be valuable. A run on the bank can be averted if people see a rich (and therefore of course very smart) man make a large deposit in the bank. People will use paper money if it looks like wealth. And the value of things, what the currency is really based on, is not gold but the City itself. “How much is Ankh-Morpokh worth? Add it all up! The buildings, the streets, the people, the skills, the art in the galleries, the guilds, the laws, the libraries… billions? No. No money would be enough.”
And it’s because Moist von Lipwig thinks like this; because he understands people that he (rather than the mechanistic Alan Greenspan-like figure pictured here as Mr. Bent) is the right man to build an economy for Ankh-Morpokh. For Terry Pratchett knew at least a year before September 2007 that an economy runs on belief and trust rather than gold.
It’s an insight we, in the unfortunately real world, have yet to learn.
Related article Our Passions, Self-interest, and the Economic Mess
Liked it
nice review, Inna.
One for my to read pile this time, it seems
This is really a good review!Keep it up!I’m glad that you’re back!
Hi, Inna, how are you?
I like this, it’s quite illuminating. I never was much of a fan of Terry Pratchett, but thanks for sharing. I just might read it.
Top notch.
i haven’t read his books but this sounds so interesting that I will look for this book. Sounds like he might be onto something.
This book sounds interesting. Thanks for the review, Inna.
Thank you for your kind words, everyone!
Inna
Thanks for the review! The book sound interesting. I really want to read it.
Sounds like a great read. Must look into that 1. Great article.
Great work! That was great article about review of making money. Lovely article. Nicely done and well written 2. I LOV it..nice pics..Thanx 4 sharing..keep it up
Sound like a great book to read..Wonderful review!
Great review. Sounds like an awesome book.
This sounds muy interesante! I’d like to read this book- thanks for the review. Also, thank you, Inna, for checking out my last piece : ). Hope you write some more pieces soon or at least do some more book reviews so I can create my summer reading list, hehe.
Very interesting read! I really adore Terry Pratchett. He looks at every aspect of modern life in the funniest, most interesting of ways. And I like your take on “Making Money” (which is actually next on my list of Pratchett books to read). Good job!