Money (47 page)
Authors: Felix Martin
A final thing I have tried to do in the present book is to show why a clear and realistic understanding of money is not just of academic interest, but an important tool for confronting contemporary economic and social challenges. As I was writing, Andrew Jackson, Richard Werner, Tony Greenham, and Josh Ryan-Collins produced a supremely accomplished example of how this could be done in their book
Where Does Money Come From? A Guide to the UK Monetary and Banking System
(Jackson, Werner, Greenham, and Ryan-Collins, 2012)—essential reading for anyone who wants to understand how modern banking systems work and what could be done to improve them.
That book focuses on the U.K. banking system (though its relevance is much broader). For American readers, and anyone interested in particular in how “high finance”—the global, wholesale capital markets—works, then Perry Mehrling’s
The New Lombard Street: How the Fed Became the Dealer of Last Resort
(Mehrling, 2011) is an exceptional treatment by a distinguished economist who truly understands not only the workings of today’s financial markets, but also the developments both in financial practice and theory that made them. It was a fundamental influence on the present book.
Finally, two significant books on money were published in the U.K. when I was already in the midst of writing, with the unfortunate result that I was not able to absorb and make reference to them as I would in retrospect have liked. These are Philip Coggan’s
Paper Promises: Money, Debt, and the New World Order
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