The economics of money, banking and financial markets
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Introduction. Why study money, banking, and financial markets?. An overview of the financial system. What is money?. Financial markets. Understanding interest rates. The behavior of interest rates. The risk and term structure of interest rates. The stock market, the theory of rational expectations, and the efficient market hypothesis. Financial institutions. An economic analysis of financial structure. Financial crises and the subprime meltdown. Banking and the management of financial institutions. Economic analysis of financial regulation. Banking industry : structure and competition. Central banking and the conduct. Of monetary policy. Central banks and the federal reserve system. The money supply process. The tools of monetary policy. The conduct of monetary policy : strategy and tactics. International finance and monetary policy. The foreign exchange market. The international financial system. Monetary theory. The demand for money. The ISLM model. Monetary and fiscal policy in the ISLM model. Aggregate demand and supply analysis. Transmission mechanisms of monetary policy : the evidence. Money and inflation. Rational expectations : implications for policy. Chapters on the web. Nonbank finance. Financial derivatives. Conflicts of interest in the financial industry. The ISLM model