Money, Banking, and the Financial System [Hardcover]

About the book

A modern, brief approach pays close attention to recent developments in policy and theory

• This brief, up-to-date approach helps students better grasp the most relevant concepts and theories.
• The text stresses a lesson policymakers learned the hard way: What happens in the shadow banking system is as important to the economy as what happens in the commercial banking system.
• Presents students with the underlying economic explanations of why the financial system is organized as it is and how the financial system is connected to the broader economy.
• Offers a framework that allows students to apply the theory that they learn in the classroom to the practice of the real world. This framework includes understanding, evaluating, and predicting; a modern approach; integration of international topics; and a focus on the Federal Reserve.

 

Coverage of the most important and recent topics

• NEW! Coverage of how interest rates are determined using the money market model helps professors cover the relationship between money supply growth and interest rates (Section 4.4).
• EXPANDED! Discussion of stocks and market indexes has been included (Section 6.1).
• REVISED! The use of derivatives in foreign exchange markets has been moved to the end of Chapter 8 where it can be easily omitted by instructors who do not wish to col“