5 ms·

What is the best book to understand the financial system is, how it works and why it is the way it is for a layman?

lordnacho 4y ago
IIRC there was a book called "how the city works" which I read as a junior trader. That's a non technical interview of what kinds of roles there are in finance, explaining what all the different players do.
- calpaterson 4y ago
  You probably mean "The money machine: how the city works" https://www.amazon.co.uk/Money-Machine-How-City-Works/dp/0141042893 https://www.amazon.co.uk/Money-Machine-How-City-Works/dp/014... I agree, it's a good intro. Covers insurance too.
  - lordnacho 4y ago
    Yep
- mey 4y ago
  Is it this book? https://www.koganpage.com/product/how-the-city-really-works-9780749459680 https://www.koganpage.com/product/how-the-city-really-works-...
simonebrunozzi 4y ago
Some of patio11’s blog posts are better, and more succinct, than most books.
rchaud 4y ago
Start with Investopedia articles. Here's one on currency pegs, and why most governments don't have free floating exchange rates. https://www.investopedia.com/terms/c/currency-peg.asp https://www.investopedia.com/terms/c/currency-peg.asp
- DiogenesKynikos 4y ago
  Also read about the "impossible trinity": 1. Fixed exchange rate 2. Free movement of capital 3. Independent monetary policy You can have at most two, but not all three at once.[0] 0. https://en.wikipedia.org/wiki/Impossible_trinity https://en.wikipedia.org/wiki/Impossible_trinity
spiralx 4y ago
The Bank of England has two great introductory papers on money in the modern economy, they're about as easy as it gets when explaining quite a complicated system. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-in-the-modern-economy-an-introduction.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-... https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...

IIRC there was a book called "how the city works" which I read as a junior trader. That's a non technical interview of what kinds of roles there are in finance, explaining what all the different players do.

calpaterson 4y ago
You probably mean "The money machine: how the city works" https://www.amazon.co.uk/Money-Machine-How-City-Works/dp/0141042893 https://www.amazon.co.uk/Money-Machine-How-City-Works/dp/014... I agree, it's a good intro. Covers insurance too.
- lordnacho 4y ago
  Yep
mey 4y ago
Is it this book? https://www.koganpage.com/product/how-the-city-really-works-9780749459680 https://www.koganpage.com/product/how-the-city-really-works-...

simonebrunozzi 4y ago

Some of patio11’s blog posts are better, and more succinct, than most books.

rchaud 4y ago

Start with Investopedia articles. Here's one on currency pegs, and why most governments don't have free floating exchange rates. https://www.investopedia.com/terms/c/currency-peg.asp https://www.investopedia.com/terms/c/currency-peg.asp

DiogenesKynikos 4y ago
Also read about the "impossible trinity": 1. Fixed exchange rate 2. Free movement of capital 3. Independent monetary policy You can have at most two, but not all three at once.[0] 0. https://en.wikipedia.org/wiki/Impossible_trinity https://en.wikipedia.org/wiki/Impossible_trinity

spiralx 4y ago

The Bank of England has two great introductory papers on money in the modern economy, they're about as easy as it gets when explaining quite a complicated system. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-in-the-modern-economy-an-introduction.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-... https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...