Everything you wanted to know about banking but were afraid to ask

'Finance, a fine art', 'The Economist Guide to Economic Indicators', and 'Going off the Rails', variously provide an overview of the banking industry, the workings of the economy, and the problems facing global capitalism.

In 'Finance, a fine art', Michel Fleuriet, a former chief executive of Merrill Lynch France and former chairman of HSBC France, tracks the history of banking from the time when shells were used as money to the complex financial products used today.

Fleuriet combines an interest in theorising with attention to detail, to make the book engaging as well as informative.

Among other things, Fleuriet explains for the layman the mysteries of the price earnings ratio, bond pricing, probability theory, the derivatives markets, and events behind the 1998 collapse of the hedge fund Long Term Capital Management.

'Finance, a fine art' also draws parallels between the art and the stock markets. The concept of compound interest is illustrated with the notion that the $24 received by an Indian for the sale of Manhattan in the 1600s would now be worth more than $50 bn, had it been invested at a

half-yearly compound interest rate of 6%.

Students looking for a broader description of how a modern economy works may find The Economist's new 'Guide to Economic Indicators' helpful. The book is well suited to the financial novice, and covers everything from gdp (gross domestic product) to exchange rates and the balance of payments.

More complex topics such as yield curves and share pricing are also touched upon.

Finally, students anticipating interview questions on the trials of global capitalism can read 'Going off the Rails' by John Plender. Plender, a Financial Times writer, moves between development in the third world, the collapse of Enron, corporate governance and the stock market mania of the late 1990s.

He concludes that company law, corporate governance and accountancy have been stretched beyond their limits and that 'capital markets are in a period of extraordinary transition.' Students would do well to find out why.

Going of the Rails, Global Capitalism and the Crisis of Legitimacy - John Plender. Published by John Wiley & Sons

Guide to Economic Indicators, Making Sense of Economics (5th Edition) - The Economist

Finance, a fine art - Michel Fleuriet. Published by John Wiley & Sons