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Money In One Lesson
You Spend It. You Save It. You Never Have Enough of It. But how does it actually work?
Understanding cash, currencies and the financial system is vital for making sense of what is going on in our world, especially now. Since the 2008 financial crisis, money has rarely been out of the headlines. Central banks have launched extraordinary policies, like quantitative easing or negative interest rates. New means of payment, like Bitcoin and Apple Pay, are changing how we interact with money and how governments and corporations keep track of our spending. Radical politicians in the US and UK are urging us to transform our financial system and make it the servant of social justice.
And yet, if you stopped for a moment and asked yourself whether you really understand how it works, would you honestly be able to say 'yes'?
In Money in One Lesson, Gavin Jackson, a lead writer for the Financial Times, specialising in economics, business and public policy, answers the most important questions to clarify for the reader what money is and how it shapes our societies. With brilliant storytelling, Jackson provides a basic understanding of the most important element of our everyday lives. Drawing on stories like the 1970s Irish Banking Strike to show what money actually is, and the Great Inflation of West Africa's cowrie shell money to explain how it keeps its value, Money in One Lesson demystifies the world of finance and explains how societies, both past and present, are forever entwined with monetary matters.
Understanding cash, currencies and the financial system is vital for making sense of what is going on in our world, especially now. Since the 2008 financial crisis, money has rarely been out of the headlines. Central banks have launched extraordinary policies, like quantitative easing or negative interest rates. New means of payment, like Bitcoin and Apple Pay, are changing how we interact with money and how governments and corporations keep track of our spending. Radical politicians in the US and UK are urging us to transform our financial system and make it the servant of social justice.
And yet, if you stopped for a moment and asked yourself whether you really understand how it works, would you honestly be able to say 'yes'?
In Money in One Lesson, Gavin Jackson, a lead writer for the Financial Times, specialising in economics, business and public policy, answers the most important questions to clarify for the reader what money is and how it shapes our societies. With brilliant storytelling, Jackson provides a basic understanding of the most important element of our everyday lives. Drawing on stories like the 1970s Irish Banking Strike to show what money actually is, and the Great Inflation of West Africa's cowrie shell money to explain how it keeps its value, Money in One Lesson demystifies the world of finance and explains how societies, both past and present, are forever entwined with monetary matters.
400 pages, Hardcover
Published January 1, 2022
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Displaying 1 - 13 of 13 reviews
September 20, 2022
I deemed Jackson’s “Money in one lesson” as a classic “book for the masses” on financial history. However, it presents more than just a collection of “fun facts” on money. In fact, it takes an educated approach on this matter, resorting to various field of studies and not only economics and history (as is the case, e.g., with Ferguson’s “The Ascent of Money”). I’ve also found balanced its historical parts, which were limited to an ancillary role of illustrating concepts with historical examples. It is also a very thorough book on the school of thoughts and theories on money, presenting all the main authors and theories battling in this field of study. In a future and longer reviewed edition, I am hoping for an extended version of the final chapter on inequality, which was rather interesting, although short.
February 7, 2022
This is a no bullshit book about money. But relax, it does not try to sell you a new way to get rich quick. Instead, the Money In One Lesson explains why money exists, how it is created and where inflation comes from. It shows how money is intertwined with society's progress. If you believe Harari Sapiens core idea that Homo sapiens have outlived other species because we can operate using abstract ideas, then you could be interested in this book. It is hard to argue that the abstract idea of money, alongside law and country, is one of the pillars of big societies.
Sparing you from an unexpected start, the book first tells about the history of money. From the beginning it puts forward the core idea that money is all about trust. This is the reason why money enables societies to operate efficiently and the reason why money can cause governments and countries to fail.
Apart from the ability to be exchanged for goods, money also bears power. Gavin's way of showing this angle on money and resulting dynamics between investors, workers, governments and central banks is a great find. It adds a depth to the book and lifts the book from being just a money 101 course.
The Money In One lesson does a good job of demonstrating that economics and money theory is more akin to psychology rather than physics. Economy lacks defined methodology, theories could not be tested by experiments and the Nobel Prize committee does not shy away from awarding the prize to two conflicting theories in the same year.
You can take this book as an anxiety medicine if you are worrying about government debt. Depending on where you live, of course.
If you are a cashetarian you would like The Money In One lesson because it is financial-markets-free. No single hedge fund manager was harmed in making this book. But it has a basic chapter about cryptocurrencies.
The writing would benefit from a sprinkle of zing here and there. As it stands, it comes out a bit dry, which is understandable for the book written by a FT author. Adding a bit of energy to it would make it more chewable and perhaps even waiting for a desert.
I would recommend it to somebody looking to understand the basics of money for its own sake and not for practical purposes. Otherwise, you won’t lose a lot by not reading.
Sparing you from an unexpected start, the book first tells about the history of money. From the beginning it puts forward the core idea that money is all about trust. This is the reason why money enables societies to operate efficiently and the reason why money can cause governments and countries to fail.
Apart from the ability to be exchanged for goods, money also bears power. Gavin's way of showing this angle on money and resulting dynamics between investors, workers, governments and central banks is a great find. It adds a depth to the book and lifts the book from being just a money 101 course.
The Money In One lesson does a good job of demonstrating that economics and money theory is more akin to psychology rather than physics. Economy lacks defined methodology, theories could not be tested by experiments and the Nobel Prize committee does not shy away from awarding the prize to two conflicting theories in the same year.
You can take this book as an anxiety medicine if you are worrying about government debt. Depending on where you live, of course.
If you are a cashetarian you would like The Money In One lesson because it is financial-markets-free. No single hedge fund manager was harmed in making this book. But it has a basic chapter about cryptocurrencies.
The writing would benefit from a sprinkle of zing here and there. As it stands, it comes out a bit dry, which is understandable for the book written by a FT author. Adding a bit of energy to it would make it more chewable and perhaps even waiting for a desert.
I would recommend it to somebody looking to understand the basics of money for its own sake and not for practical purposes. Otherwise, you won’t lose a lot by not reading.
March 11, 2022
Some books by economics folk are way too complex and difficult to understand by the layperson. For the most part, this wasn’t one of those books. Gavin Jackson did a better job than 90% of the authors who write on topics of money for a “general audience”. Jackson breaks down the invention of money throughout history, how we started using banks, the history of stock exchanges and much more. When he got into certain topics like the national debt and inflation, it was a little harder to keep up with, but I’m sure I’d comprehend it a little more if I gave those chapters another read. It’s definitely not a reason to not pick up this book.
As far as my criticisms of this book, I have a couple. The first one is his chapter on cryptocurrency. I’ll never understand how such smart people use the same tired arguments like “it’s used for crime” as though fiat currency isn’t used for crime and hasn’t been used for crime for thousands of years. Frankly, it’s mind-blowing. That chapter irked me so bad that I even wrote a substack piece about it. Next, Jackson pulls his punches pretty hard when it comes to all of the terrible things the rich and powerful do with money. Maybe, he’s just an optimist and gives people the benefit of the doubt, but at certain points, he sounds like a propagandist for billionaires and hedge fund managers.
Overall, it’s a great book that will teach you a lot. But immediately after this book, I recommend you read some Robert Reich books to understand all the shady things the elite do with money.
As far as my criticisms of this book, I have a couple. The first one is his chapter on cryptocurrency. I’ll never understand how such smart people use the same tired arguments like “it’s used for crime” as though fiat currency isn’t used for crime and hasn’t been used for crime for thousands of years. Frankly, it’s mind-blowing. That chapter irked me so bad that I even wrote a substack piece about it. Next, Jackson pulls his punches pretty hard when it comes to all of the terrible things the rich and powerful do with money. Maybe, he’s just an optimist and gives people the benefit of the doubt, but at certain points, he sounds like a propagandist for billionaires and hedge fund managers.
Overall, it’s a great book that will teach you a lot. But immediately after this book, I recommend you read some Robert Reich books to understand all the shady things the elite do with money.
March 24, 2023
Money represents debt. The price of money/debt depends on time preference, capital productivity, and confidence/expectation. What fundamentally drive these factors are dismally uncertain.
Insofar as it is seen as an infallibly complete measurement of “an individual’s contributions to the economy and their entitlement to goods and services in exchange” (p. 269, paraphrasing Stiglitz), wealth is a grotesque distortion of values. Subjectivity, irrationality, and information deficits give leeway to perennial political contests. These intrinsically are insoluble and eternal. Jackson does a good job in explaining economic concepts. He also demystifies monetary policies well. The last several chapters however read like magazine articles and feel less cogent. Overall it gives clarity and focus to the reader on such a fascinating topic. Four star.
Insofar as it is seen as an infallibly complete measurement of “an individual’s contributions to the economy and their entitlement to goods and services in exchange” (p. 269, paraphrasing Stiglitz), wealth is a grotesque distortion of values. Subjectivity, irrationality, and information deficits give leeway to perennial political contests. These intrinsically are insoluble and eternal. Jackson does a good job in explaining economic concepts. He also demystifies monetary policies well. The last several chapters however read like magazine articles and feel less cogent. Overall it gives clarity and focus to the reader on such a fascinating topic. Four star.
August 18, 2023
Всеки път като попадна на интересна книга на тема икономика и финанси, се изумявам, че тези теми могат да бъдат изключително интересни ако са поднесени с чувство за хумор и яснота.
Научих нови неща, за които не бях чувала досега, чисто исторически. Отделно, авторът направи много добър разбор на важни световни събития как реално са предизвикани от липсата на пари. Даже спомена българския лев, но в негативен контекст. Изданието, което четох, имаше дори и анализ накрая на най-последните икономически събития, свързани с войната в Украйна.
Истинската ценност на тази книга е в начина на писане на автора - така пише, че от раз разбираш сложни икономически концепции и финансови понятия. Чудесна книга да си препрочиташ отделни глави когато имаш нужда да си припомниш основни понятия и принципи, свързани с икономиката и как парите функционират. :)
Научих нови неща, за които не бях чувала досега, чисто исторически. Отделно, авторът направи много добър разбор на важни световни събития как реално са предизвикани от липсата на пари. Даже спомена българския лев, но в негативен контекст. Изданието, което четох, имаше дори и анализ накрая на най-последните икономически събития, свързани с войната в Украйна.
Истинската ценност на тази книга е в начина на писане на автора - така пише, че от раз разбираш сложни икономически концепции и финансови понятия. Чудесна книга да си препрочиташ отделни глави когато имаш нужда да си припомниш основни понятия и принципи, свързани с икономиката и как парите функционират. :)
May 25, 2023
I gave the book five stars not because the topic is particularly interesting, in fact money is probably really boring to most people. But the author does a great job of demystifying and explaining how money works without using tons of jargon. For that I will recommend this book to anyone who wants to understand how and why we use money and how it contributes to bigger systems such as the economy and society at large.
April 12, 2023
Money in One Lesson provides a strong, robust and highly entertaining summary of main macroeconomic principles: inflation, interest rates, central banking, Keynesian versus Hayekian economics. The weakest and least fleshed out were Jackson's few later chapters dedicated to Green Banking and post-COVID recovery.
November 28, 2023
This is a really well-written overview of money, and issues relating to money, covering everything from its history, to what money is conceptually, to issues linked to money, such as debt, interest, and government spending. If any of that lot floats your boat, and you want a well-written primer on money, then I'd highly recommend this book.
Want to read
January 8, 2023The Economist's 2022 Books of the Year.
July 13, 2023
One of these books everybody needs to read
September 10, 2023
It’s an important contribution to our understanding of all things money and finance. Starts slow but gets very deep pretty quick.
March 8, 2023
Very good. Full of fascinating examples even for someone well read on he subject.
February 11, 2023
I've gained a respect for the complexity and interconnectedness of economic policy, and decision-making after finishing this book. I loved the anecdotal stories that explained the topic of chapter. This book was written in 2022, and has extremely relevant and up-to-date information, which is extremely helpful to see in a financial book.
Displaying 1 - 13 of 13 reviews