

The mustache is the difference; otherwise they look alike?
Since 2001 ........... Remade in June 2008 ........... Latest version since January 2022
When the Journal of Economic Literature asked me to write a review of The World
is Flat, by Thomas Friedman, I responded with enthusiasm, knowing it wouldn’t
take much effort on my part. As soon as I received a copy of the book, I shipped it overnight by UPS to India to have the work done. I was promised a one-day turn-around for a fee of $100. Here is what I received by e-mail the next day: “This book is truly marvelous. It will surely change the course of human history.” That struck me as possibly accurate but a bit too short and too generic to make the JEL happy, and I decided, with great disappointment, to do the work myself.
The title The World Is Curved is sure to draw comparisons with Tom Friedman’s book The World Is Flat. Why did you select the title? Why is the world now curved? Was it ever flat?
Friedman brilliantly presents the first installment of the globalization story, concentrating on the revolutionizing (flattening) of the global supply chain. But there is a second installment—the financial side of the story where the world is not flat; the world is curved. You can’t see over the horizon. Sight lines are limited. As during the subprime mortgage crisis, we are forced to travel down an endless, dangerously twisting and turning road of volatility with steep valleys and risky mountainous climbs. We can’t see financial risk ahead. A small village in Arctic Norway can see its
entire financial future destroyed because its financial managers invested heavily in a Citigroup product called a collateralized debt obligation.