Table of Contents

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

Bibliography 227

Acknowledgments 231

Index 233

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 consultants to institutional investors around the world. He is also the author of ten books, including three recent volumes from Wiley-Against the Gods: The Remarkable Story of Risk, The Power of Gold: The History of an Obsession, and Capital Ideas Evolving.

Reviews

"This book reveals and discusses the link that still exists between money and gold." (Finance & Management Faculty, October, 2008)