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.

• Foreword by Paul A. Volcker ixNew Introduction xvOriginal Introduction xxvPart One The Money ProblemChapter 1 Why Worry about Money and Gold? 3Chapter 2 Spending and Financing 8Chapter 3 The Price of Money 16Part Two The Creation of MoneyChapter 4 Money in Hand and Money in the Bank 29Chapter 5 The Business of Banking 39Chapter 6 Bank Credit and Money 49Part Three The Control of MoneyChapter 7 The Federal Reserve System 69Chapter 8 Federal Reserve Tools of Control 84Chapter 9 Reserve Requirements 105Chapter 10 Currency: A Complication 120Part Four GoldChapter 11 Gold at Home 133Chapter 12 Gold Abroad 142Part Five Theory in PracticeChapter 13 The Experience of 1938 to 1945 163Chapter 14 The Experience of 1945 to 1963 176Chapter 15 The Experience of 1966 188Conclusion Money and Gold in the Future 203Appendix Reading the Weekly Federal Reserve Statement 215Bibliography 227Acknowledgments 231Index 233

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

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.

• Foreword by Paul A. Volcker ixNew Introduction xvOriginal Introduction xxvPart One The Money ProblemChapter 1 Why Worry about Money and Gold? 3Chapter 2 Spending and Financing 8Chapter 3 The Price of Money 16Part Two The Creation of MoneyChapter 4 Money in Hand and Money in the Bank 29Chapter 5 The Business of Banking 39Chapter 6 Bank Credit and Money 49Part Three The Control of MoneyChapter 7 The Federal Reserve System 69Chapter 8 Federal Reserve Tools of Control 84Chapter 9 Reserve Requirements 105Chapter 10 Currency: A Complication 120Part Four GoldChapter 11 Gold at Home 133Chapter 12 Gold Abroad 142Part Five Theory in PracticeChapter 13 The Experience of 1938 to 1945 163Chapter 14 The Experience of 1945 to 1963 176Chapter 15 The Experience of 1966 188Conclusion Money and Gold in the Future 203Appendix Reading the Weekly Federal Reserve Statement 215Bibliography 227Acknowledgments 231Index 233

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

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.

• Foreword by Paul A. Volcker ixNew Introduction xvOriginal Introduction xxvPart One The Money ProblemChapter 1 Why Worry about Money and Gold? 3Chapter 2 Spending and Financing 8Chapter 3 The Price of Money 16Part Two The Creation of MoneyChapter 4 Money in Hand and Money in the Bank 29Chapter 5 The Business of Banking 39Chapter 6 Bank Credit and Money 49Part Three The Control of MoneyChapter 7 The Federal Reserve System 69Chapter 8 Federal Reserve Tools of Control 84Chapter 9 Reserve Requirements 105Chapter 10 Currency: A Complication 120Part Four GoldChapter 11 Gold at Home 133Chapter 12 Gold Abroad 142Part Five Theory in PracticeChapter 13 The Experience of 1938 to 1945 163Chapter 14 The Experience of 1945 to 1963 176Chapter 15 The Experience of 1966 188Conclusion Money and Gold in the Future 203Appendix Reading the Weekly Federal Reserve Statement 215Bibliography 227Acknowledgments 231Index 233

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