In "The Ascent of Money," Niall Ferguson explores the role of central banks in financial bubbles. He argues that without the ability to easily create credit, these economic bubbles cannot truly form. This key mechanism is often overlooked, as it plays a significant part in the development of financial crises and market excesses.

Ferguson highlights that many of these bubbles arise due to the failures of central banks, whether by deliberate actions or missed opportunities. Their influence on credit availability can drastically affect market dynamics, leading to unsustainable growth and eventual downturns. Understanding this relationship is crucial for grasping the complexities of financial history.