Well-known for its engaging, conversational style, this text makes sophisticated concepts accessible, introducing students to how markets and institutions shape the global financial system and economic policy.Principles of Money, Banking, & Financial Markets incorporates current research and data while taking stock of sweeping changes in the international financial landscape produced by financial innovation, deregulation, and geopolitical considerations.
T he Basics: Introducing Money, Banking, and Financial Markets; The Role of Money in the Macroeconomy; Financial Instruments, Markets, and Institutions.Financial Instruments and Markets: Interest Rate Measurement and Behavior; The Term and Risk Structure of Interest Rates; The Structure and Performance of Securities Markets; The Pricing of Risky Financial Assets; Money and Capital Markets; Demystifying Derivatives; Understanding Foreign Exchange. Banks and Other Intermediaries: The Nature of Financial Intermediation; Depository Financial Institutions; Nondepository Financial Institutions.Financial System Architecture: Understanding Financial Contracts; The Regulation of Markets and Institutions; Financial System Design.The Art of Central Banking: Who's In Charge Here?; Bank Reserves and the Money Supply; The Instruments of Central Banking; Understanding Movements in Bank Reserves; Monetary Policy Strategy.Monetary Theory: The Classical Foundations; The Keynesian Framework; The ISLM World; Money and Economic Stability in the ISLM World; An Aggregate Supply and Demand Perspective on Money and Economic Stability; Rational Expectations: Theory and Policy Implications; Empirical Evidence on the Effectiveness of Monetary Policy.Grand Finale: Tying It All Together.
For all readers interested in money, banking, and financial markets.