Money Machine 6/e,The

by Philip Coggan

What happens in the City has never affected us more. In this excellent guide, now fully revised and updated, leading financial journalist Philip Coggan cuts through the headlines, the scandals and the jargon to explain the nuts and bolts of the financial system. What causes the pound to rise or interest rates to fall? Which are the institutions that really matter? Why is it we need the Money Machine - and what happens when it crashes? Coggan provides clear and concise answers and shows why we should all be more familiar with a system we so intimately depend upon.

Genres: Finance, Economics, Nonfiction, Business, Law, History, Money

240 pages, Paperback

First published November 20, 1986

About the author

Philip Coggan is a British columnist and author of books on economics. He currently writes for The Economist. Previously, he worked for the Financial Times for 20 years.

Reviews

[Darran Mclaughlin]

I'm reading around business, economics and capitalism at the moment. This is a clear, succinct book on a boring subject. It's dull but it does exactly what it says on the tin.

[May Ling · Rating 4 out of 5]

I read this book to see how others have attempted to a holistic descriptions of the market place. This is actually not bad. If you have a lot of work experience you may find it a little basic in parts.



As for my research, I like that it draws out a lot of the different players/financial systems/institutions that are involved. He does a decent job of articulating what motivates each area of finance. I would highly suggest this for those that are trying to learn the market environment. Though it's setting is to describe the UK, it actually is fairly accurate for the US as well. It is also useful in creating a framework for what is going on in finance, who the players are, and what drives them.

[Duncan · Rating 4 out of 5]

An accessible introduction to the world of banking and finance, focussing on the city of London. Important financial instruments are described straightforwardly, with examples given to illustrate some of the more complex ideas. The main players in the market are also introduced here, with some discussion of what motivates them, which will put a lot of this into context for many, like myself, whose understanding of the industry comes largely from the media and their day-to-day experience. A very worthwhile book.

[Ryan Judd · Rating 4 out of 5]

Ask me about credit default swaps

[Paul Raphael · Rating 4 out of 5]

Exactly what you'd expect - essentially a wikipedia for the UK financial system, but easier to read.

[Alice · Rating 1 out of 5]

Well, it's only a short book, but it felt much MUCH longer. I'm not unintelligent, but the financial sector is one area of human knowledge that never fails to set my head spinning. It's not a bad book, just that I was lost almost from the first page. If this was 'introduction to the economy', then I clearly need to start with 'economics for tiny babies'

[Aaron Jesse O'Hare-Lewis · Rating 4 out of 5]

A mostly clear and accessible overview of finance in the UK. However it's a lot of information to absorb, and I doubt I'll retain much of it; chapter-by-chapter exercises would have helped a lot with retention and understanding, though I understand why a journo writing for a broad audience wouldn't provide such.

[Gina M · Rating 4 out of 5]

Whilst probably not a book to be read for entertainment value alone, this is a really concise guide about a multitude of issues impacting the financial state of banks, governments, companies and individuals.

Definitely a useful book for understanding complex issues going on in the world. It provides a good foundation of knowledge (from which there are several avenues I know I am now keen to pursue in more detail). Some of the chapters might seem more relevant or interesting than others, but there is no doubt that each page is highly informative and uses good examples and explanations to break down complex subjects. I would recommend keeping a pen and paper nearby to take a couple of notes, though!

I'd highly recommend this for people curious about how the economy works, and/or who would like to build a foundational understanding of important issues which tend to be merely glanced over in general life (like what, exactly, a 'share' is and how it differs from other assets, like 'bonds'; or what the impact is of borrowing with a 'fixed' or 'floating' rate).

[Omar F Begg · Rating 5 out of 5]

An absolutely brilliant exploration of the heart of the UK’s FS sector. Coggan makes complex issues extremely understandable and digestible, and gets the information across clearly, in a very engaging manner.

Overall it’s a very easy read, and not laborious. A great book, particularly for beginners or those with little understanding of the financial services sector, but an equally engaging read for the more experienced. Contextualises a lot of the modern economic trends and innovations, while also flagging up areas of concern moving forward.

[Murray · Rating 4 out of 5]

Stimulating introduction to finance which goes into a satisfying level of detail. However, the writing gets very lazy in places (I felt this particularly in the final chapters, not sure if there was a chronological element to the writing or I was just tiring?!).

Sometimes I was left frustrated at the relentlessly strange and interchangeable finance terminology, which I felt could be massively simplified, but perhaps this serves to better represent the vernacular of the real finance sector and therefore helps to develop real-world fluency.

[Max Pays · Rating 4 out of 5]

A good introduction into the financial markets and finance as a whole. Covers a variety of topics; from the history of the bank, interest rates, and Private Equity. Would recommend to those (particularly students) who haven't studied a financial discipline but would like a brief, yet vast, introduction into the topic.

[Robert Baranowski · Rating 4 out of 5]

Easy to understand and concise summary of all things financial markets with an emphasis on London. Puts more complicated subjects like fx currency, options, and futures in the vocabulary of the everyday man. Would be 5 stars, but a lot of the information in the book is outdated due to a more digitized economy. Great read for anyone trying to understand the basic financial system.

[Waleed · Rating 5 out of 5]

It shouldn't be that hard to write an extremely clear overview of the UK financial sector for the layperson, but for some reason Philip Coggan is the only writer to have done it. This book is in its seventh edition for good reason.

[Yates Buckley · Rating 3 out of 5]

Interesting format: good quick insight into the financial world with minimal jargon. A bit confusing in terms of explaining how the taxinomy of financial players interrelate. And I wish I had realised there is a new more up to sate edition fo read!

[Dorottya Tornai · Rating 3 out of 5]

Provides an interesting insight into the world of finance. Gives an elaborate review on how the financial sector works and all its segments.
Yet, it is not an easy read, as it construes a lot of concepts. By continuously offering new definitions, the book can get tedious.

[Gemma Hegarty · Rating 3 out of 5]

Many see Economics and Finance as dull, and sadly, this book will somewhat reinforce this position with it being a rather dry read. If however you are looking for a high-level overview, this would most certainly check the box and give you the foundational overview you may be looking for.

[Calfehill · Rating 3 out of 5]

A overview of finance based on the City of London, presented in a textbook-like manner, explaining concepts from basics. It was beneficial for getting accustomed to the UK financial market and English terminology.

[John · Rating 3 out of 5]

Good, but not great

Good intro to the British financial system (especially for an America). Recommend for young professionals or investors who are curious.

[Jeroen Van de Crommenacker · Rating 3 out of 5]

A good introduction to how the City of London works. Useful.

[Tom Bolton · Rating 4 out of 5]

Top primer

[Marissa]

Its a very good book ;)

[Gerald · Rating 3 out of 5]

OK, not great. Ideas a bit our of date, but provides clear and understandable contetn for the theme

[Aleks · Rating 4 out of 5]

Can't say multum in parvo, however this is a powerful book.

[Anders Gränfors · Rating 4 out of 5]

A Good description of the brittisk finance sektor.
Openlibrary

[Afolabi Akeredolu]

very good read

This is educative and easy to read and digest. Many thanks to the author for taking time out to write on this important topic.

[Maria Ximena · Rating 2 out of 5]

Es interesante y conciso, pero me pareció aburrido. No es mi tipo de libro sencillamente.

[MichaelK · Rating 4 out of 5]

Due to the subject matter, this is a VERY dull book - but it does do an excellent job of explaining the complexities of the financial sector and its jargon.

[Connor S · Rating 4 out of 5]

There are some errors here and there that are stated with absolute certainty but if you've read around the history of banking this puts good context, especially, to bond trading and pension funds. Took me a long time to actually get reading it but well worth it for the detailed technical knowledge

[Richard Brooks · Rating 4 out of 5]

I am constantly trying to improve my understanding of economics. I'm interested as a goal in itself - I find it very interesting - but I'm also motivated to better understand economics so I can interrogate political/policy claims from left and right with more confidence.

I've already spent considerable time and energy learning about economics, so I wasn't a total rookie when I read this book. I would say that my intellectual curiosity doesn't just stop at economics, I tend to have a need to know policy on a lot of stuff, and as such, I love a good summary. So this book offered such a summary so it appealed.

It's written by one of the editors at the Economist - a publication I enjoy reading, and whose style is pretty clear and accessible.

The book romps through the major topics in finance: money & interest rates, borrowers, investment institutions (including pension funds and other institutional investors), foreign exchange, bonds, insurance, risk management (including futures, options, etc.), Bank of England, government borrowing, etc. etc.

It is aimed squarely on the UK market, but equally most of the concepts are generic, and could (I supposed) by applied anywhere. I guess the difference is that within each market there are nuances: e.g. the Bank of England's regulatory role differs from that of central Banks in other jurisdictions; how the City of London and UK banking sector is regulated differs from the US, say.

As such, I found it a very useful summary, and would highly recommend to someone else, who, like me, is looking to boost their financial understanding.

It's very clearly written, in a matter-of-fact "This is how this works" manner, with helpful illustrations widely given.

The author avers that these are basic concepts which anyone can grasp. I'd slightly quibble with that in the sense that I think finance does quickly get quite complicated and confusing, unless you're someone who has a very numbers-based brain (which I would say isn't me). I'd also add that there are a few concepts which the author assumes prior knowledge of, which if you didn't have those might prove slightly confusing. However, generally this book is entry level, I'd say and pitched at a good level.

Don't expect a good narrative, though. This is very much a primer / explainer, not a book intended to entertain while it educates. For example, if I were to compare this with Niall Ferguson's the Ascent of Money, that book is written in a style where the author asserts more opinions and brings more stories into the book; whereas this book, which is much briefer, just restricts itself to explanation and that's it.

It is interesting though.

So yep, if you just want a quick overview of the UK's financial institutions written in an accessible style, this is the book for you.

[Alan Newton · Rating 4 out of 5]

Quite a dry book but good nonetheless.

An excellent appraisal of the various financial institutions, products, instruments, and managers involved in the global money machine. Despite calls for more regulation, more crashes will happen in the future, as influential people seek to gain. With too little control over shadows banks, room for fraud continues to be a concern, and - yet - conversely, too much power is concentrated in the hands of the few who can ‘manipulate’ what happens in the system, for their own ends. Any aliens coming down would wonder what the hell we are playing at. Money and power have always gone hand-in-hand, and this analysis will do nothing to change that view. Distortions and inefficiencies are representative of the system, as is undue pressure on governments by those with the power, who essentially place duress on governments to get what benefits them. However, benefits to businesses and individuals through increased liquidity and flexibility appear to be the price worth paying for such a system. The author also ably demonstrates the complexity of the markets and the different investment vehicles & instruments available, not to mention, their volatility.