The economics of money, banking, and financial markets

PART 1

 

Introduction 1

CHAPTER 1

Why Study Money, Banking, and Financial Markets? 

2

Why Study Financial Markets? .....................................................................................................2

Debt Markets and Interest Rates ............................................................................................. 3

The Stock Market ................................................................................................................... 3

Why Study Financial Institutions and Banking? .......................................................................5

Structure of the Financial System ........................................................................................... 5

Banks and Other Financial Institutions ................................................................................... 6

Financial Innovation............................................................................................................... 6

Financial Crises ...................................................................................................................... 6

Why Study Money and Monetary Policy? .................................................................................7

Money and Business Cycles .................................................................................................... 7

Money and Inflation ............................................................................................................... 7

Money and Interest Rates ........................................................................................................ 9

Conduct of Monetary Policy ................................................................................................... 9

Fiscal Policy and Monetary Policy ......................................................................................... 10

Why Study International Finance? ........................................................................................... 11

The Foreign Exchange Market .............................................................................................. 12

The International Financial System ....................................................................................... 13

Money, Banking, and Financial Markets and Your Career ................................................. 14

How We Will Study Money, Banking, and Financial Markets ........................................... 14

Exploring the Web ............................................................................................................... 15

Collecting and Graphing Data .............................................................................................. 15

Web Exercises ...................................................................................................................... 15

Concluding Remarks .................................................................................................................... 15

Summary 15  •  Key Terms 16  •  Questions 16  •  Applied Problems 17  •   

Data Analysis Problems  17   •   Web Exercises  18   •   Web References  18