The Inside Story

How Money Works

The Bank of England pull back the curtain on how money really works, and what happens when it doesn’t. 
 
Where does money come from? What gives a £1 coin its value? And whose job is it to actually print banknotes? 
 
Most of us think about money every day. But we tend not to think about how weird it is: a totally abstract concept, built entirely on trust, which somehow makes the whole world function. 
 
The Bank of England know more about money than most – after all, they are the ones responsible for making sure it works. Now, the Bank answer all the questions about money that you’ve never thought to ask – from what makes money money, to how private banks create money every time they give out a loan, to what happens to cash when it’s past its sell by date (it’s often moulded into garden furniture, as it turns out). Along the way, they offer your one-stop guide to how money really works – and where it might be going next.

Rupal Patel and Jack Leslie are economists at the Bank of England, the UK’s central bank. Founded in 1694, the Bank is responsible for printing money, setting interest rates and regu­lating the financial sector. Since 2017, the Bank’s staff have been on a mission to promote economic literacy across the UK: delivering talks in schools, running Citizens’ Panels on people’s economic experiences, and publishing the bestselling primer on economics Can’t We Just Print More Money?.

Where does money come from? What gives a £1 coin its value? And whose job is it to actually print banknotes? 
 
Most of us think about money every day. But we tend not to think about how weird it is: a totally abstract concept, built entirely on trust, which somehow makes the whole world function. 
 
The Bank of England know more about money than most – after all, they are the ones responsible for making sure it works. Now, the Bank answer all the questions about money that you’ve never thought to ask – from what makes money money, to how private banks create money every time they give out a loan, to what happens to cash when it’s past its sell by date (it’s often moulded into garden furniture, as it turns out). Along the way, they offer your one-stop guide to how money really works – and where it might be going next.

Rupal Patel

The Bank of England

Jack Meaning

If you feel you should understand how economists think but have no idea where to start, this book is the answer . . . The Bank should be congratulated on this effort at education. Buy this book for the inquiring person, young, old or in between.

A well-written treat . . . Using examples including the Bank of England canteen, The Simpsons and Beanie Babies, the authors encourage us all to understand, and even challenge, what economists do.

Professor David Spiegelhalter, author of THE ART OF STATISTICS

An enjoyable introduction to the so-called dismal science . . . Patel and Meaning have done an admirable job in simplifying and popularising some of the key elements of their subject.

A great place to start your economic journey. With the Bank of England as your guide, this accessible book shows how economics affects so many aspects of our daily lives.

Dr Linda Yueh, author of THE GREAT ECONOMISTS

A well-timed attempt to show the public what goes on inside the Bank of England - and familiarise them with some basic economic concepts . . . Punctuated with jaunty anecdotes and neat examples.

A good introduction to concepts such as inflation, quantitative easing, supply and globalisation.

A very readable guide to economics . . . contains some great facts . . . Entertaining.

Economics affects every aspect of our lives, but it can often seem like an inaccessible, off-puttingly jargon-laden subject. This is the guide you need! An entertaining and essential read at a time when understanding how our money, governments and banks interact has never felt more important.

Laura Whateley, author of MONEY: A USER'S GUIDE

The authors want to inspire a new generation of economists, both at school level and among older students . . . If Patel and Meaning could help turn that tide, they will have performed a great public service.

[One of] a range of accessible introductory books that can give people a basic understanding of the subject that may even prompt them to dig deeper . . . A great primer.

Economics in Ten Simple Questions

Why are all my clothes made in Asia? 
How do I get a pay-rise? 
And what even is money? 
 
Join Britain's most venerable financial institution for a rip-roaring crash-course in economics. From financial crises to Freddo prices, it will help you make sense of your job, your life and maybe your world. 
_ 
 
'A well-written treat . . . Using examples including the Bank of England canteen, The Simpsons and Beanie Babies, the authors encourage us all to understand, and even challenge, what economists do' Professor David Spiegelhalter, author of The Art of Statistics 
 
'A well-timed attempt to show the public what goes on inside the Bank of England - and familiarise them with some basic economic concepts . . . Punctuated with jaunty anecdotes and neat examples' Guardian 
 
'An entertaining and essential read at a time when understanding how our money, governments and banks interact has never felt more important' Laura Whateley, author of Money: A User's Guide

The Bank of England

Praise for Can’t We Just Print More Money?

If you feel you should understand how economists think but have no idea where to start, this book is the answer . . . The Bank should be congratulated on this effort at education. Buy this book for the inquir ...

A well-written treat . . . Using examples including the Bank of England canteen, The Simpsons and Beanie Babies, the authors encourage us all to understand, and even challenge, what economists do.

An enjoyable introduction to the so-called dismal science . . . Patel and Meaning have done an admirable job in simplifying and popularising some of the key elements of their subject.

If you feel you should understand how economists think but have no idea where to start, this book is the answer . . . The Bank should be congratulated on this effort at education. Buy this book for the inquir ...

A well-written treat . . . Using examples including the Bank of England canteen, The Simpsons and Beanie Babies, the authors encourage us all to understand, and even challenge, what economists do.

An enjoyable introduction to the so-called dismal science . . . Patel and Meaning have done an admirable job in simplifying and popularising some of the key elements of their subject.

If you feel you should understand how economists think but have no idea where to start, this book is the answer . . . The Bank should be congratulated on this effort at education. Buy this book for the inquir ...

A well-written treat . . . Using examples including the Bank of England canteen, The Simpsons and Beanie Babies, the authors encourage us all to understand, and even challenge, what economists do.

An enjoyable introduction to the so-called dismal science . . . Patel and Meaning have done an admirable job in simplifying and popularising some of the key elements of their subject.

Books by The Bank of England

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