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Money in One Lesson
'Superb' - Tim Harford, author of How to Make the World Add Up
Money is essential to the economy and how we live our lives, yet is inherently worthless. We can use it to build a home or send us to space, and it can lead to the rise and fall of empires. Few innovations have had such a huge impact on the development of humanity, but money is a shared fiction; a story we believe in so long as others act as if it is true.
Money is rarely out of the headlines – from the invention of cryptocurrencies to the problem of high inflation, extraordinary interventions by central banks and the power the West has over the worldwide banking system. In Money in One Lesson, Gavin Jackson answers the most important questions on what money is and how it shapes our world, drawing on vivid examples from throughout history to demystify and show how societies and its citizens, both past and present, are always entwined with matters of money.
‘A highly illuminating, well-researched and beautifully written book on one of humanity’s most important innovations’ – Martin Wolf, chief economics commentator, Financial Times
Money is essential to the economy and how we live our lives, yet is inherently worthless. We can use it to build a home or send us to space, and it can lead to the rise and fall of empires. Few innovations have had such a huge impact on the development of humanity, but money is a shared fiction; a story we believe in so long as others act as if it is true.
Money is rarely out of the headlines – from the invention of cryptocurrencies to the problem of high inflation, extraordinary interventions by central banks and the power the West has over the worldwide banking system. In Money in One Lesson, Gavin Jackson answers the most important questions on what money is and how it shapes our world, drawing on vivid examples from throughout history to demystify and show how societies and its citizens, both past and present, are always entwined with matters of money.
‘A highly illuminating, well-researched and beautifully written book on one of humanity’s most important innovations’ – Martin Wolf, chief economics commentator, Financial Times
432 pages, Paperback
Published July 18, 2023
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771 people want to read
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Displaying 1 - 20 of 20 reviews
April 27, 2025
Primii bani au apărut ca o abstractizare pe tăblițele de lut din Mesopotamia, la fel cum banii moderni rămân în mare parte pe cipurile de siliciu.
Primele monede s-au emis în secolul VI Î.Hr., în regatul Lidia din Anatolia, unde trăia bogatul rege Cresus. Ele erau grăunțe de electrum, un aliaj natural de aur și argint. Prin transformarea "unității de cont" abstracte într-un simbol fizic, banii au devenit mai accesibili și utili.
Băncile dețin active (împrumuturi) și pasive (depozite). O bancă obține profit dacă se asigură că are o rată a dobânzii pentru active mai mare decât cea pentru pasive. Pentru aceasta, ea întreprinde ceea ce se numește "transformarea maturității". Cu alte cuvinte, câștigă venit mutând banii în timp. Împrumută pe termen scurt de la depunători (banii tăi din bancă trebuie returnați instantaneu când îi ceri), dar oferă împrumuturi pe termen mai lung. Un credit auto poate fi realizat pe trei sau cinci ani, de exemplu.
Inflația este viteza cu care crește nivelul general al prețurilor. Pentru salariați acest lucru înseamnă că pot cumpăra mai puțin. Mai important, însă, este efectul asupra datoriilor și a economiilor: deflația îngreunează plata datoriilor, în timp ce inflația erodează valoarea economiilor.
În timp, o inflație modestă poate ajuta economia. Ea nu doar că oferă un fel de lubrifiant economic (companiile se adaptează mult mai ușor la circumstanțele dificile mărind salariile cu un procent mai mic decât inflația, practic o tăiere din salarii, decât micșorând oficial salariile), ci este și un indicator privind starea generală a economiei. Inflația extremă (hiperinflația) poate distruge complet o economie.
A fost o lectură dificilă. Recunosc că am fost nevoit să recitesc subcapitole întregi, dar asta din cauza ignoranței mele despre sistemul financiar (mai greu cu garanțiile repo și ratele overnight ale dobânzii).
Recomand
Primele monede s-au emis în secolul VI Î.Hr., în regatul Lidia din Anatolia, unde trăia bogatul rege Cresus. Ele erau grăunțe de electrum, un aliaj natural de aur și argint. Prin transformarea "unității de cont" abstracte într-un simbol fizic, banii au devenit mai accesibili și utili.
Băncile dețin active (împrumuturi) și pasive (depozite). O bancă obține profit dacă se asigură că are o rată a dobânzii pentru active mai mare decât cea pentru pasive. Pentru aceasta, ea întreprinde ceea ce se numește "transformarea maturității". Cu alte cuvinte, câștigă venit mutând banii în timp. Împrumută pe termen scurt de la depunători (banii tăi din bancă trebuie returnați instantaneu când îi ceri), dar oferă împrumuturi pe termen mai lung. Un credit auto poate fi realizat pe trei sau cinci ani, de exemplu.
Inflația este viteza cu care crește nivelul general al prețurilor. Pentru salariați acest lucru înseamnă că pot cumpăra mai puțin. Mai important, însă, este efectul asupra datoriilor și a economiilor: deflația îngreunează plata datoriilor, în timp ce inflația erodează valoarea economiilor.
În timp, o inflație modestă poate ajuta economia. Ea nu doar că oferă un fel de lubrifiant economic (companiile se adaptează mult mai ușor la circumstanțele dificile mărind salariile cu un procent mai mic decât inflația, practic o tăiere din salarii, decât micșorând oficial salariile), ci este și un indicator privind starea generală a economiei. Inflația extremă (hiperinflația) poate distruge complet o economie.
A fost o lectură dificilă. Recunosc că am fost nevoit să recitesc subcapitole întregi, dar asta din cauza ignoranței mele despre sistemul financiar (mai greu cu garanțiile repo și ratele overnight ale dobânzii).
Recomand
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.
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August 1, 2025money can still build cathedrals, send us to space, or cause someone to sacrifice what they thought were their most valued principles.
When the British Museum decided to tell the story of money’s origins it similarly turned to beer. 5 One of the oldest objects in its collection, alongside Swedish copper plate money and the giant stone money of the island of Yap, is a clay tablet from ancient Mesopotamia detailing the daily beer rations owed to workers. This description of a debt is now seen as one of humanity’s earliest records of money.
first money appears as an abstraction on the clay tablets too, just as modern money mostly remains on silicon chips.
scribes would list the prices of six important commodities: barley, dates, cuscuta (a type of herb), cardamom, sesame and wool. Each was given a price in terms of a fixed weight of silver – known as a shekel.
Many currency names – pound, peso and shekel – come from words originally used for a measure of weight. one kilogram of oranges weighs as much as one kilogram of lead.
Anatolia in modern Turkey. The metal was a means of keeping track of the size of the debt, just like a bar tab. 14 This unit of account was eventually given physical existence when the first coins were minted in the kingdom of Lydia, in Anatolia, where the famously rich Croesus ruled.
the value of the bronze-coloured metal plunged. So, to keep the two coins worth the same, the copper version had to get bigger and bigger. By 1644, Sweden had produced the largest coin ever in existence: a 20kg behemoth that was completely impractical for commerce.
It was a Latvia-born merchant and former burgher of Amsterdam calling himself Johan Palmstruch after a spell in jail for defaulting on his debts – who came up with the solution: a bank.
Today this is known as fractional reserve banking, a bank keeps reserves worth only a fraction of its liabilities. A bank does not actually have enough cash to repay all of the depositors their balance – it is effectively gambling that not everyone is going to ask for the ‘means of settlement’ all at the same time.
A bank makes a profit by ensuring it earns a higher rate of interest on its assets than it does on its liabilities. To do this, it does what is called ‘maturity transformation’. 20 In other words, they earn an income by moving money through time.
When the British Museum decided to tell the story of money’s origins it similarly turned to beer. 5 One of the oldest objects in its collection, alongside Swedish copper plate money and the giant stone money of the island of Yap, is a clay tablet from ancient Mesopotamia detailing the daily beer rations owed to workers. This description of a debt is now seen as one of humanity’s earliest records of money.
first money appears as an abstraction on the clay tablets too, just as modern money mostly remains on silicon chips.
scribes would list the prices of six important commodities: barley, dates, cuscuta (a type of herb), cardamom, sesame and wool. Each was given a price in terms of a fixed weight of silver – known as a shekel.
Many currency names – pound, peso and shekel – come from words originally used for a measure of weight. one kilogram of oranges weighs as much as one kilogram of lead.
Anatolia in modern Turkey. The metal was a means of keeping track of the size of the debt, just like a bar tab. 14 This unit of account was eventually given physical existence when the first coins were minted in the kingdom of Lydia, in Anatolia, where the famously rich Croesus ruled.
the value of the bronze-coloured metal plunged. So, to keep the two coins worth the same, the copper version had to get bigger and bigger. By 1644, Sweden had produced the largest coin ever in existence: a 20kg behemoth that was completely impractical for commerce.
It was a Latvia-born merchant and former burgher of Amsterdam calling himself Johan Palmstruch after a spell in jail for defaulting on his debts – who came up with the solution: a bank.
Today this is known as fractional reserve banking, a bank keeps reserves worth only a fraction of its liabilities. A bank does not actually have enough cash to repay all of the depositors their balance – it is effectively gambling that not everyone is going to ask for the ‘means of settlement’ all at the same time.
A bank makes a profit by ensuring it earns a higher rate of interest on its assets than it does on its liabilities. To do this, it does what is called ‘maturity transformation’. 20 In other words, they earn an income by moving money through time.
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. :)
November 26, 2024
This book provides an engaging and accessible exploration of the complexities of money, its role in shaping societies, and its broader economic impact. Combining anecdotes and historical insights, Jackson explains money's evolution and its often misunderstood nature. High praise for this book for its clarity, intellectual depth, and engaging writing style, making it suitable for both newcomers and seasoned readers in economics. It's a fantastic read for anyone seeking to grasp the fundamentals of how money works. I really enjoyed learning the history of money!
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.
December 20, 2024
A profound book with a deceptive title. It lures you in with the promise of piercing through the veil of the financial system in one swift strike, and before you know it, you’re the one under siege. Money in one lesson might give you a profound intuitive grasp over the murky matters of money, granted you already have a pretty good fucking foothold in the field. Alas, for a financial minnow such as myself, it proved to be a class I must retake.
February 7, 2025
This was a great book in helping me improve my financial literacy as well as reassuring me that even the so-called experts in money are just grasping in the dark half the time.
Gavin Jackson breaks down the complexity of money in a way that is accessible to the everyman, covering the history of money all the way up to modern-day cryptocurrency. I found this book fascinating and eye-opening and would recommend it to anyone who wants a deeper understanding of how money works on a grand scale.
Gavin Jackson breaks down the complexity of money in a way that is accessible to the everyman, covering the history of money all the way up to modern-day cryptocurrency. I found this book fascinating and eye-opening and would recommend it to anyone who wants a deeper understanding of how money works on a grand scale.
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.
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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.
October 31, 2024
Makasih udh bantu w buat lulus
November 14, 2024
Mi-a plăcut mult! Bine documentată și ușor de parcurs.
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 - 20 of 20 reviews