DescriptionOne of the foremost financial writers of his generation, Peter Bernstein has the unique ability to synthesize intellectual history and economics with the theory and practice of investment management. Now, with classic titles such as Economist on Wall Street, A Primer on Money, Banking, and Gold, and The Price of Prosperity—which have forewords by financial luminaries and new introductions by the author—you can enjoy some of the best of Bernstein in his earlier Wall Street days.
With the proliferation of financial instruments, new areas of instability, and innovative capital market strategies, many economists and investors have lost sight of the fundamentals of the financial system—its strengths as well as its weaknesses. A Primer on Money, Banking, and Gold takes you back to the beginning and sorts out all the pieces.
Peter Bernstein skillfully addresses how and why commercial banks lend and invest, where money comes from, how it moves from hand to hand, and the critical role of interest rates. He explores the Federal Reserve System and the consequences of the Fed's actions on the overall economy. But this book is not just about the past. Bernstein's novel perspective on gold and the dollar is critical for today's decision makers, as he provides extensive views on the future of money, banking, and gold in the world economy.
This illuminating story about the heart of our economic system is essential reading at a time when developments in finance are more important than ever.
Foreword by Paul A. Volcker ix
New Introduction xv
Original Introduction xxv
Part One The Money Problem
Chapter 1 Why Worry about Money and Gold? 3
Chapter 2 Spending and Financing 8
Chapter 3 The Price of Money 16
Part Two The Creation of Money
Chapter 4 Money in Hand and Money in the Bank 29
Chapter 5 The Business of Banking 39
Chapter 6 Bank Credit and Money 49
Part Three The Control of Money
Chapter 7 The Federal Reserve System 69
Chapter 8 Federal Reserve Tools of Control 84
Chapter 9 Reserve Requirements 105
Chapter 10 Currency: A Complication 120
Part Four Gold
Chapter 11 Gold at Home 133
Chapter 12 Gold Abroad 142
Part Five Theory in Practice
Chapter 13 The Experience of 1938 to 1945 163
Chapter 14 The Experience of 1945 to 1963 176
Chapter 15 The Experience of 1966 188
Conclusion Money and Gold in the Future 203
Appendix Reading the Weekly Federal Reserve Statement 215