Summary of A Primer on Money, Banking, and Gold

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

A Primer on Money, Banking, and Gold  book summary
Start getting smarter:
or see our plans

Rating

8 Overall

6 Applicability

8 Innovation

9 Style


Recommendation

Peter L. Bernstein’s classic, originally published in the mid-1960s, provides a learned, generally accessible explanation of the workings of the American monetary system. Of course, some of the information is quite out-of-date, but you’ll understand that as you read. For example, the author speaks extensively about the importance of gold in international finance – yet gold has not really mattered since 1971. Moreover, the book came out before history taught the lessons of the 1970s, 1980s and 1990s, not to mention the financial crisis that began in 2008. Former Fed Chair Paul Volcker’s foreword and Bernstein’s new introduction acknowledge these time lags. The last quarter of the 20th century saw a very extensive reshaping of the financial system, including the creation of new financial entities and even new forms of money, so this primer is less useful and informative than it may have been when new. Nonetheless, getAbstract finds that Bernstein’s explanation of the fundamental workings of the Federal Reserve and of the role of commercial banks in the monetary system remains lucid and well worth reading.

In this summary, you will learn

  • What creates and destroys money;
  • How the Federal Reserve interacts with banks and why that matters; and
  • What role gold has played in global finance.
 

About the Author

Peter L. Bernstein is founder and president of Peter L. Bernstein, Inc., established in 1973 as publishers of Economics & Portfolio Strategy and as consultants to institutional investors around the world. He also is the author of 10 books.

 

Summary

Why Money Matters
Money means that you do not have to negotiate a barter exchange whenever you want to make a purchase. Money was a fixture of even very rudimentary societies. However, in today’s complex society, money is no longer a matter of feathers, beads or even coins, but of accounting...

More on this topic

By the same author

Against the Gods
Against the Gods
8
Capital Ideas
Capital Ideas
8
Capital Ideas Evolving
Capital Ideas Evolving
9
Wedding of the Waters
Wedding of the Waters
9
The Power of Gold
The Power of Gold
9

Customers who read this summary also read

The New Case for Gold
The New Case for Gold
7
Stabilizing an Unstable Economy
Stabilizing an Unstable Economy
8
This Time Is Different
This Time Is Different
8
And the Weak Suffer What They Must?
And the Weak Suffer What They Must?
8
The Man Who Knew
The Man Who Knew
9
How to Speak Money
How to Speak Money
8

Related Channels

Comment on this summary