How It All Began begins in uncharacteristically violent fashion: "The pavement rises up and hits her. Slams into her face, drives the lower rim of her glasses into her cheek." Charlotte, a retired schoolteacher in her late 70s, finds that she has been mugged and relieved of her house keys, bank cards and £60 in cash. As a reader, you share her sense of shock and bewilderment – after all, one might expect to be reasonably safe from street crime in a Penelope Lively novel; though the book introduces a number of elements you wouldn't ordinarily expect to find, including East European immigrants, chocolate cream frappuccinos and errant text messages used as a plot device.

It soon becomes apparent that being knocked down has a knock-on effect. Charlotte is forced to move in with her daughter Rose while she recuperates, which means that Rose is unable to accompany her employer, Lord Peters, to receive an honorary doctorate in Manchester. His Lordship's niece, an interior designer named Marion, goes with her uncle instead, though a text explaining her absence is intercepted by the wife of her lover, thus hastening the demise of their marriage. It all unfolds with the inescapable logic of a well-oiled farce, though every so often Lively's authorial voice intrudes to comment on the domino-toppling effect: "Thus have various lives collided, the human version of a motorway shunt, and the rogue white van that slammed on the brakes is miles away, offstage, impervious."

The novel contains some of Lively's funniest and most enjoyable character studies, not least the pompous bubble of self-esteem that is the academic relic Lord Peters; once a leading authority on Walpole, he now worries that "the 18th century has passed him by", and hopes to re-establish his reputation with a David Starkey-style television series. Lively is deliciously intolerant of interior designers – Marion's paramour, who runs a reclamation yard, is painted as little more than an jumped-up junk merchant; while Marion's business is principally based on the resale of "a cargo of interior adornments forever on the move, filtering from one mansion flat or bijou Chelsea terrace house to another".

Yet the most telling relationship is that which develops between the comfortably married Rose and Anton, an economic migrant who comes to visit Charlotte for literacy lessons. Rose surprises herself by developing an affection for this timid man with soulful eyes and fractured English, but sensibly limits the relationship to wistful strolls round London parks and weekend assignations in Starbucks.

Anton, a trained accountant, has had to accept work on a building site while struggling to master the language. Charlotte achieves a breakthrough by throwing away the standard uninspiring teaching materials and presenting him with a copy of Where the Wild Things Are. "I am like child," he says, happily. "Child learn because he is interested … Story go always forward – this happen, then this. That is what we want. We want to know how it happen, what comes next. How one thing make happen another."

It can only be a matter of time before Anton graduates from Maurice Sendak to Penelope Lively novels, as she remains a sublime storyteller – the opening sentence has us riveted with curiosity as to what will happen next. Yet she also keeps us consistently aware of the nature of the illusion. "So that was the story," she concludes, "so capriciously triggered because something happened to Charlotte in the street one day. But of course this is not the end of the story … These stories do not end, but spin away from one another, each on its own course." In other words, they momentarily collide and separate to form the kind of narrative at which Lively excels: the untidy, unpredictable one in which everyone lives ambivalently ever after.

*Starred Review* The ruling vision of master British novelist Lively's latest is the Butterfly Effect, which stipulates that a very small perturbation can radically alter the course of events. The catalyst here is a London mugging that leaves Charlotte, a passionate reader and former English teacher become adult literacy tutor, with a broken hip. She moves in with her married daughter, Rose, to recuperate. Rose works for Henry, a lord and once-prominent historian, whose ego is as robust as ever but whose mind is faltering. With Rose out helping her mother, Henry prevails upon his niece, Marion, an interior designer, to accompany him out of town, where she meets a too-good-to-be-true client. When she texts her lover, to postpone a rendezvous, his wife intercepts the message. Charlotte begins tutoring Anton, who affirms her ardor for language and awakens Rose out of her smothering stoicism. Throughout this brilliantly choreographed and poignant chain-reaction comedy of chance and change, Lively shrewdly elucidates the nature of history, the tunnel-visioning of pain and age, and the abiding illumination of reading, which so profoundly nourishes the mind and spirit.--