The most important thing that I think is missing from the book is any discussion of why the United States of America has been able to maintain and sustain its economic growth over the past several decades despite the fact that the rest of the developed world has been in a constant state of decline. The reason that the United States has been able to retain its position as the dominant economic power in the world is because it has built the necessary domestic foundations for sustained economic growth that were necessary to allow it to maintain its economic dominance. The author simply fails to recognize the basic premise upon which a sustained economic growth depends, namely, the presence of the right fiscal policies.
The main thesis of the book is that the US economy has enjoyed significant growth because of its adoption of the Federal Reserve policy of quantitative easing, which enables it to maintain an interest rate at or below zero when the need arises to do so. This in turn helps the United States to maintain a substantial surplus budget in terms of revenue generated by government expenditures, which allows it to maintain an enormous level of domestic liquidity that is needed to finance domestic economic activity.
The second part of the book deals with how this policy of quantitative easing has helped the US economy to achieve and maintain its economic growth. The author rightly notes that it is not only quantitative easing that is responsible for this sustained economic growth, but also the extensive use of macroeconomic policies that have been adopted over the last several years. However, this is where the book begins to fall apart, because the author does not really discuss how the federal reserve system has become such an important part of the US economic system over the last several decades. Instead, he seems to prefer a limited understanding of the role played by the central banks in the overall process of economic policymaking.
He also fails to understand the importance that has been placed on fiscal policy by the federal government in the formulation of economic policy. For example, he does not consider the fact that most economic analyses of the United States have concluded that the expansion of the size of the federal government and its ability to raise taxes on individual taxpayers are the primary reason behind the growth of the country's economy over the last few decades.
As a result, I would have preferred to focus more on the growth of the financial system than the growth of the financial market, which is one of the main themes of the book. That is not to say that there is anything wrong with using the financial system to finance growth; rather, what I am suggesting is that this is not necessarily a proper place to focus most attention when studying the causes and consequences of economic development. and growth over the last several decades.
The . . . . . . book also makes no mention of the role that the growth of the Federal Reserve has played in creating a unique set of macroeconomic policies, which have helped to fuel the extraordinary growth over the past few decades. While this may seem like a small issue, it is a critical one that the author acknowledges it and that he does not try to explain the growth of the Fed away in his book.