Lombard Street - A Description Of The Money Market [Paperback]

Walter Bagehot (Author)

Book Description

Publication Date: January 12, 2009

Lombard Street by Walter Bagehot is a description of the Money Market, published in 1873. Bagehot was one of the first writers to describe and explain the world of international and corporate finance, banking, and money in understandable language. This book was in part a reaction to the 1866 collapse of Overend, Gurney and Company, located at 65 Lombard Street, from which the title.

Editorial Reviews

Amazon.com Review

People panicked during a credit crunch or economic downturn on London's Lombard Street of the 1800s just as they do on Wall Street today. That's only one reason this reprint of the classic book by famed 19th-century economist Walter Bagehot offers lessons even now. First published in 1873, the book is a compilation of 11 essays that Bagehot wrote as the editor of The Economist, and includes his advice to banks for dealing with financial crises: "We must keep a great store of ready money always available, and advance out of it very freely in periods of panic, and in times of incipient alarm. Any notion that money is not to be had, or that it may not be had at any price, only raises alarm to panic and enhances panic to madness."

In terms of the U.S. savings-and-loan crisis and the Asian economic meltdown of the 1990s, Bagehot's words still ring as timely, even with the dated references to British politics of the time. For example, he proposed allowing unstable banks to collapse and advocated creating an independent finance professional to run the nation's central bank. Lombard Street, named after London's financial district and the birthplace of the money market, will be an eye opener for students and others interested in the history and workings of financial systems. --Dan Ring --This text refers to an alternate Paperback edition.

Review

"...classic account of the money market...makes vivid reading" (Spectator Business, November 2008) --This text refers to an alternate Paperback edition.

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Product Details

• Paperback: 172 pages
• Publisher: NuVision Publications, LLC (January 12, 2009)
• Language: English
• ISBN-10: 159547577X
• ISBN-13: 978-1595475770
• Product Dimensions: 6 x 9 x 0.4 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #1,367,777 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

16 of 16 people found the following review helpful:

5.0 out of 5 stars A classic must-read, August 1, 2001

By 

R. Nord "ro-no" (Washington, DC USA) - See all my reviews
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This review is from: Lombard Street: A Description of the Money Market (Wiley Investment Classics) (Paperback)

Walter Bagehot was the first editor of the now world-famous Economist magazine, which has in many ways remained faithful to the liberal philosophy (in a European sense)of its founder. Lombard Street might be difficult to read at first, but as with Charles Dickens once you get used to the style the tale is riveting. And his advice on how a central bank, as the lender of last resort, should behave in the face of a banking crisis remains valid to this day.

9 of 9 people found the following review helpful:

5.0 out of 5 stars The human face of finance, November 23, 2003

By 

N. Tsafos (Washington, DC) - See all my reviews
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This review is from: Lombard Street: A Description of the Money Market (Wiley Investment Classics) (Paperback)

Can a book about finance written in 1873 be helpful in a world with complex financial markets and plenty of information about how they work? The answer is yes. It is not that "Lombard Street" is a classic that one finds quoted many a time; the reader's interest should transcend historical inquiry or curiosity; "Lombard Street" should be read and revered by anyone interested in the underlying, abiding features of financial markets.

But what are those characteristics? Bagehot, then editor of The Economist, writes that credit centers on trust: "Credit means that a certain confidence is given, a certain trust reposed." And, banks always have on-demand liabilities that far exceed their readily available assets. In short, credit works on trust, and the system, in the absence of trust, can fall apart rapidly.

What follows from these premises is a careful examination of how the money market came about, what its uses are, how its operations are connected to trade and country's overall welfare, and, most importantly, how central banks can deal with financial crises. Written elegantly, "Lombard Street" is, at the same time, an introductory overview of the market and a trenchant analysis of its most salient features.

But what makes "Lombard Street" timeless is that it deals with finance in its human form. Bagehot talks about power, prestige and perception as much as he does about interest, discount, and credit. Trust is based on institutions and people: the human features of finance-trust, anxiety, mania, optimism-are timeless and apply to the financial markets of the nineteenth, twentieth, or twenty-first century. That is why "Lombard Street" is an ever useful introduction and guide.

19 of 23 people found the following review helpful:

2.0 out of 5 stars Very Thorough, yet Tough to Read, January 31, 2001

By 

Fred "Technology is your friend." (CHAPEL HILL, NC, United States) - See all my reviews
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This review is from: Lombard Street: A Description of the Money Market (Wiley Investment Classics) (Paperback)

Wiley Investment Classics generally fall into two categories, tough and dreary reads full of information, and lively entertaining accounts which also educate. Unfortunately, Mr. Bagehot and Mr. Bernstein's text is the former. The book does an outstanding job of promoting the importance of a strong central banking system and the importance of strict credit control when combating financial crises. However, it does so amidst extremely repetitive and somewhat painful language. The authors provide outstanding quantitative and anecdotal evidence supporting their case, but they do so in such a way that makes the book a true labor to read.

This book would be very beneficial to anyone doing research on, or working for some kind of central banking organization. Otherwise, I would suggest looking to any of the other Wiley Investment Classics for a more interesting and educational read about finance.