fainancial

While most economists are still puzzled by the most recent foreign exchange and banking crises - such as the ones that took place last year in Argentina and Uruguay - and some of them (like Stiglitz) are proposing reckless and innefective solutions, such as abolishing the IMF and most of the existing international agencies, Jean Tirole presents a more pensive and fruitful explanation of why these crises occur, and sheds new light towards a much more effective solution. His approach is based on a new field of agency theory called Corporate Finance, which deals with the set of institutions that make it credible for the suppliers of funds to recover their investments in an specific firm.

Tirole applies the basic principles of the prudential regulation of banks, that he worked before in collaboration with Mathias Dewatripont (MIT Press, 1994, ISBN: 0262041464), and which contains much of what we have learned through the twentieth century about financial crises. According to this approach, both the international financial and monetary systems would work much better if we had international risk classifying agencies on the one hand, providing information to investors about the liquidity and solvency of debtor countries, and a lender of last resort on the other. The trouble with the IMF is that it tries to perform both functions.

However, what makes external borrowing more complicated than a typical financial arrangement is the presence of a third player, that is the borrower's government which has both the incentives and the means to affect the foreing investor's return by manipulating the exchange rate or the capital mobility. Because the investors' return is affected by the behaviour of two agents, the borrower himself and its government, Tirole calls this a dual agency problem.

Tirole proposes an institutional reform in which the IMF should redefine its original mission, by concentrating in the role of facilitating the country's favourable access to foreign borrowing. This role underlies the (controversial) task of pre-qualification and conditionality. The IMF should also redefine its internal structure if it wants to perform well this new role. Its Board of Governors is too big and too heterogeneous to allow rapid and efficient decisions.

In summary, this book presents and original and groundbreaking approach to financial crises which, as we expected from the beginning, arises more questions than answers. However, we know that the only way to find the appropriate solution to a problem is by formulating the right questions, and this is exactly what Tirole does. I am convinced that if the international agencies follow this approach they will soon find the right way to prevent or to lessen international financial crises, in the same way as central banks and financial regulatory agencies did with domestic banking crises during the last century.

Tirole has written an invaluable book that sheds light to a complex and extremley actual topic. By showing once again his seriousness as an economist (as opposed to others; i.e. Stiglitz), he goes back to first principles to understand the source of problems in international contracts. The application of modern corporate finance to international finance is extraordinary.
Even the first chapters should be obligatory reading to any student of international macro (even in the first macro course). The first one gives a concise history of modern currency crisis -the so called first twenty-first century crisis- while the second one masterfully summarizes the economists views on the subject.
Good economics, great topic, amazing timing.

Financial Custody: You, Your Money, And Divorce by Certified Divorce Planner Joan Coullahan and Certified Financial Planner and Chartered Financial Consultant Sue van der Linden is an absolute "must-read" for anyone undergoing or about to undertake a divorce. Chapters cover the basics of legal procedures, the importance of getting organized, child support and alimony, negotiation and settlement, and much, much more. Written by experienced professionals in clear, accessible language accessible to the non-specialist general reader, Financial Custody is crucial, recommended reading for anyone who doesn't want to end their divorce flat broke.

As Joan and Sue point out, divorce is seen a primarily a legal process. In my opinion, that is because the attorneys have the strongest union which services divorcing couples. But as Certified Financial Planners, these dedicated professionals have shared a new perspective on how to approach the emotionally and financially difficult transition of dissolving a marriage. This book is not a "do it yourself" divorce kit, but instead helps couples be good consumers of divorce advice from a variety of professionals and prepares them for the decisions ahead. These concepts are covered in the first half of the book. The second half discusses practical financial planning advice that newly divorced individuals will need to consider, especially if their new "ex" was the financial manager in the marriage. As a financial counselor, I have always helped my clients look for solutions that will preserve their marriages, if at all possible, because divorce is never cheap. But when it is inevitable, this book will save them thousands of dollars as they reduce their dependence on expensive legal proceedings and make good financial choices that attorneys may never advise....

After receiving this book as a gift, I flipped through the chapters. I noticed that the book references several web sites that will supposedly help you save money in various arenas. I haven't looked them all up yet, but I did go to one recommended for insurance. As a result, I got a new auto insurance policy and saved $500.00. The book has definitely been helpful for me.

Excellent concise work that is invaluable for anyone that is working towards becoming financially independent. This book can be effectively used by students through those that are in retirement. Lots of short concrete examples so that the theories come to life. Also, nearly every page has a 'hot tip' that show ways for one to save money, invest more wisely or to somehow improve one's financial situation. This book is NOT a get-rich-quick scheme. However, it should be required reading for anyone who wants to improve their personal financial management skills. Young couples that would follow the author's advice would be able to live without debt and to retire early.

Often we believe we must keep on waiting until we accumulate a large amount of coin before we can invest. However, Chuck dispells that notion and shows you can start with as little as $5 a day (or 150 dollars a month) and he emphasizes small consistent starts. Remember most successful people had to start somewhere, most people didn't inherit their wealth, you must earn it; Chuck shows you the tools. I suggest you read the book more than once, have work book and plan things. Perhaps, you should open a separate bank account so you can put the 150 per month that won't be touched, but make sure you have an emergency fund somewhere so you won't be tempted to dip into that investment fund.

I have read Financial Freedom and the Wealthy Barber in the last few weeks. Financial Freedom was great, straightforward, and focussed. Meant for the small investor, he assumes you are starting with no savings or knowledge of investing. The message is: for $5 a day and an hour per month you can retire very well.

I was excited about saving when I finished this book. He explains why mutual funds are the vehicles of choice, gives detailed information on which funds to investigate further, including telephone numbers and addresses for companies in both the US and Canada.

He also offers a few strategies to use with mutual funds to maximize returns in up and down markets. It was so good I have convinced my book club to read it for our next book.

By the way, I am saving $5 a day. You will too.

Kindleberger's work on financial history is designed as an undergraduate guide, but such is the wealth of detail and information that it serves as a useful reference tome long after the undergraduate work is completed. Kindleberger takes the reader step by step through the financial issues of the European economy as it developed from feudal to capitalist society. The explanations of the gold versus silver standard debate (bi-metalism) is particularly helpful and clear, given the complexity of the issue. The charting of the relative developments of the UK and Continental financial systems, and the advantages that they gave the British in the nineteenth century, are also well written.

A reader looking for a wealth of data is likely to be disappointed. Figures are provided, but there are other books that will give reams of numbers for the economic historian (several of which are cited by Kindleberger - the references of this book alone are worth buying it for).

Overall, this is widely and rightly regarded as a valuable contribution to the field of economic history.

This is a fantatsic book for those interested in history as well as economics. The book provides a very detailed account of the various economic forces in Western Europe from the evolution of the banking systems in Europe, to modern events. Along the way it covers in detail and examines the causes of such events as rampant hyperinflation in Germany after World War I, and the need for many European countries to devalue their currencies during the Depression of the 1930's. I would highly recommend.

This book, as with all the previous books in this series, provides an excellent overview of the Liabilities and Responsibilities faced by financial institution directors.

Now in its fifth edition, Financial Institution Director's Liabilities and Responsibilities is a must read for all new board members. New editions contain updated information concerning the impact of FIRREA and FDICIA. The author can be contacted in Toledo, OH.

Over the next few years, the community bank Board of Directors will be less of a Good Old Boy social club. Many of the CEOs we deal with are very serious about re-vitalizing their boards.

Given the competitive nature of the financial services sector, fresh thinking at the Board level is now seen as mandatory.

But if you are offered a Board seat at a community Bank, don't accept the assignment until you have read Dr. Douglas Austin's perceptive and readable analysis.

For example, did you know that you can be held PERSONALLY liable for losses resulting from fraud of officers, if ordinary care and attention would have prevented their actions?

Have I got your attention now?

Over 75,000 copies have been sold since 1984. The book is in its fourth edition.

Larry Stybel The Board of Directors' Resource Center Boston, MA

Financial Management 101: Get A Grip On Your Business Numbers by business columnist Angie Mohr (who is also a Chartered Accountant and a Certified Management Accountant) is an thoroughly "reader friendly" guidebook designed specifically for small business owners and managers, and which methodically teaches the reader all of the basics about balance sheets, income statements, monthly budget reports, ratio analysis, dealing with inventory problems, dealing with debt, and more. Financial Management 101 is an absolute "must-read" for any business owner new to the complexities of finance and needing to competently analyze financial data, measure business success, and have an accurate and on-going comprehension of their fiscal bottom line.

An excellent book from the new Numbers 101 series (see Bookkeepers' Boot Camp). The author shows you how to get the most profit from a small business as you possibly can by using simple financial management techniques -- something like what a person who has a degree in finance or business would know and use. But it's all spelled out in easy steps. It's sort of like hiring an MBA consultant for your small business, but for a lot less money!

This book has been a great tool for me as I have learned to rethink "money" in positive terms. It is easy to read and understand and comes with real-life experiences/examples. Included with it is a cassette tape which is a absolute must. I listen to it in my car everywhere I go. Instead of listening to something that blocks my mental capacity, I listen and utilize the time otherwise wasted with goal setting and realize that success will happen. She shows us how and all we need is to want it to happen and with constant reinforcement IT DOES HAPPEN! I know because it has happened for me time and time again. Dorothy O'Donnell-Uhlman has uniquely written a book that is wonderful/helpful for all who desire that "Financial Pot O'Goals". I recommend it highly.

This book is a great tool to reprogram negative thinking. The book is easy to read and understand, and it also comes with real-life examples. I also listen to the cassette in my car while driving to work. I think it is an excellent way to utilize the time. Dorothy O'Donnell-Uhlman has provided an excellent resource for goal-oriented people, and anyone else who wants to be successful. All it takes is desire.

They've done the research and list many scholorships in an uncluttered format. Scholarships are listed by the geographical location in which the scholarship is to be used. The contact information tends to be out of date, but it is possible to find the current information, albeit with a little work.

Financial Resources for International Study is a must have for anyone wishing to attend school outside of the U.S. Every scholarship and financial aid option imaginable is listed within the book, which if you recieve one of those, could pay for the book itself easily! I would highly recommend this book to anyone who, like me, has to get out and see the world through education but cannot always pay for all of it.

Allen delivers the most insightful look at market risk management for dealers since the Group of 30 Report. While other books are taking on an increasingly bureaucratic tone when it comes to risk management, Allen is refreshingly proactive. I really like the treatment of valuation reserves. His discussion of managing spot, forward and options risks bridges the gap between what a trader is thinking and what a risk manager should be thinking. This isn't a book for the sort of risk manager who hasn't been on the trading floor in a few months. It is a tactical book for the pro who works shoulder to shoulder with quants, traders and salespeople. Note that the book is qualitative. For the quantitative side of all this, see Holton's landmark "Value-at-Risk".

This is a must buy book for both kinds of people: students or people in academia and practitioners who want to understand different type of risk they face at a macro or micro level. The reasons I like this book on risk management better than thousand others already out there are following. I like to describe this book as having two sections, both the sections are very important and people can focus on either depending on what they are looking for. The first part of the book provides a very good understanding of the risks faced by managers, for example risk managers, head of a trading portolfio or a desk or even CEOs. Very often these people face risk which are hard to quantify or even understand and are not often talked about. The author draws from personal experience and provides interesting case studies,. which makes this part of the book a pleasure to read. I learnt about model risk, reputation risk and other such risks which typically a junior person on a trading desk is not exposed to. So this understanding is very valuable in order to communicate with your boss or to get more insights about risks that management may care about.
The Second part of the book focusses on risk management of different type of instruments, instruments range from plain vanilla to complex path dependent options. It spans through assets classes as well. As promised by the author, the level of mathematical and quantitative background required is kept to the minimum. The text provides intuition about what market variables or market moves a specific instruments depends on rather than complex formulae to price such instruments. For somebody like me, who has a little more mathematical background than an average reader, the text points to latest research or specific papers that I can explore if I want to flex my quantitative muscle.
The book is full of very interesting exercises and case studies, which are truly practical. This is something which is completely different from many texts that I have seen on this topic.
Overall, I highly recommend this book to anybody who has anything to do with trading financial instruments.