In "The Economics of Microfinance," Beatriz Armendáriz and Jonathan Morduch offer a revolutionary insight into an initiative that has transformed the lives of millions. Starting in the 1970s in Latin America and South Asia, microfinance has emerged as a beacon of hope, enabling 65 million impoverished individuals to access small, collateral-free loans, accumulate assets, and secure insurance. This book is not just a narrative; it's an analysis that bridges the gap between academic economists and field practitioners, enriched by the authors' extensive experience in both realms. Armendáriz's founding of a microfinance bank in Chiapas, Mexico, combined with Morduch's fieldwork across Bangladesh, China, and Indonesia, lends this work unparalleled depth and authenticity. Beyond its recounting of microfinance's global impact, the book delves into the theoretical underpinnings that challenge conventional wisdom on how the poor save, build assets, and the ways institutions can navigate market failures to support them. "The Economics of Microfinance" addresses critical issues—ranging from the significance of informal markets, the pivotal role of women, the debate over subsidies, to the methodologies for measuring impact and ensuring effective management incentives. It's a comprehensive survey that not only integrates theory with empirical evidence from diverse continents but also makes the complex world of microfinance accessible. Through a blend of rigorous analysis and engaging examples, Armendáriz and Morduch illuminate the multifaceted world of microfinance, making this book an indispensable resource for students and scholars of economics, public policy, and development studies, as well as practitioners seeking to deepen their understanding of this transformative financial movement.