Financial Markets and Institutions

by Mishkin, Frederic S.

• ISBN13: 9780201300840
• ISBN10: 0201300842
• Format: Hardcover
• Copyright: 1999-07-01
• Publisher: Pearson College Div

Table of Contents

Foreword	xix
Preface	xxi
About the Author	xxvii
PART I INTRODUCTION	1	(36)
Why Study Financial Markets and Institutions?	3	(9)
Preview	3	(1)
Why Study Financial Markets?	4	(4)
Debt Markets and Interest Rates	4	(1)
The Stock Market	5	(2)
The Foreign Exchange Market	7	(1)
Why Study Financial Institutions?	8	(1)
Structure of the Financial System	8	(1)
Banks and Other Financial Institutions	8	(1)
Financial Innovation	9	(1)
Managing Risk in Financial Institutions	9	(1)
Why Study Monetary Policy?	9	(1)
How We Will Study Financial Markets and Institutions	10	(1)
Concluding Remarks	10	(1)
Summary	10	(1)
Key Terms	11	(1)
Overview of the Financial System	12	(25)
Preview	12	(1)
Function of Financial Markets	13	(2)
Structure of Financial Markets	15	(2)
Debt Markets and Equity Markets	15	(1)
Primary and Secondary Markets	15	(1)
Exchanges and Over-the-Counter Markets	16	(1)
Money Markets and Capital Markets	17	(1)
Financial Market Instruments	17	(4)
Money Market Instruments	17	(2)
Capital Market Instruments	19	(2)
Globalization of Financial Markets	21	(1)
International Bond Market and Eurobonds	22	(1)
World Stock Markets	22	(1)
Function of Financial Intermediaries	22	(5)
Following the Financial News International Stock Market Indexes	23	(1)
Transaction Costs	24	(1)
Insight 1 A Global Perspective The Importance of Financial Intermediaries to Securities Markets: An International Comparison	24	(1)
Asymmetric Information: Adverse Selection and Moral Hazard	25	(2)
Financial Intermediaries	27	(3)
Depository Institutions	27	(2)
Contractual Savings Institutions	29	(1)
Investment Intermediaries	30	(1)
Regulation of the Financial System	30	(7)
Increasing Information Available to Investors	31	(1)
Ensuring the Soundness of Financial Intermediaries	32	(1)
Improving Control of Monetary Policy	33	(1)
Financial Regulation Abroad	33	(4)
PART II PRINCIPLES OF FINANCIAL MARKETS	37	(96)
Understanding Interest Rates	39	(21)
Preview	39	(1)
Measuring Interest Rates	40	(7)
Present Value	41	(1)
Insight 1 Cost of the S&L Bailout: Was It Really $500 Billion?	42	(1)
Yield to Maturity	43	(4)
Other Measures of Interest Rates	47	(2)
Current Yield	48	(1)
Yield on a Discount Basis	48	(1)
The Distinction Between Interest Rates and Returns	49	(4)
Maturity and the Volatility of Bond Returns: Interest-Rate Risk	52	(1)
Reinvestment Risk	52	(1)
Duration as a Measure of Interest-Rate Risk	53	(3)
Duration and Interest-Rate Risk	55	(1)
The Distinction Between Real and Nominal Interest Rates	56	(4)
Portfolio Choice	60	(11)
Preview	60	(1)
Determinants of Asset Demand	61	(3)
Wealth	61	(1)
Expected Returns	62	(1)
Risk	62	(1)
Liquidity	63	(1)
Theory of Portfolio Choice	63	(1)
Benefits of Diversification	64	(1)
Systematic Risk	65	(1)
Risk Premiums: Capital Asset Pricing Model and Arbitrage Pricing Theory	66	(1)
Calculating the Gains from Diversification	67	(4)
The Behavior and Structure of Interest Rates	71	(28)
Preview	71	(1)
Loanable Funds Framework: Supply and Demand in the Bond Market	72	(4)
Demand Curve	72	(2)
Supply Curve	74	(1)
Market Equilibrium	74	(1)
Supply and Demand Analysis	75	(1)
Changes in Equilibrium Interest Rates	76	(6)
Shifts in the Demand for Bonds	77	(3)
Shifts in the Supply of Bonds	80	(2)
Changes in the Equilibrium Interest Rate Due to Expected Inflation or Business Cycle Expansions	82	(2)
Changes in Expected Inflation: The Fisher Effect	82	(1)
Business Cycle Expansion	83	(1)
Liquidity Preference Framework: Supply and Demand in the Market for Money	84	(3)
Changes in Equilibrium Interest Rates	85	(2)
Insight 1 Profiting from Interest-Rate Forecasts	87	(1)
Risk Structure of Interest Rates	87	(5)
Default Risk	87	(3)
Liquidity	90	(1)
Income Tax Considerations	91	(1)
Term Structure of Interest Rates	92	(7)
Following The Financial News Yield Curves	93	(1)
Expectations Hypothesis	94	(1)
Segmented Markets Theory	95	(1)
Preferred Habitat and Liquidity Premium Theories	95	(4)
The Theory of Efficient Capital Markets	99	(16)
Preview	99	(1)
Theory of Rational Expectations	100	(2)
Formal Statement of the Theory	101	(1)
Rationale Behind the Theory	101	(1)
Implications of the Theory	101	(1)
Efficient Markets Theory: Rational Expectations in Financial Markets	102	(3)
Rationale Behind the Theory	104	(1)
Stronger Version of Efficient Markets Theory	105	(1)
Evidence on Efficient Markets Theory	105	(6)
Evidence in Favor of Market Efficiency	105	(2)
Insight 1 An Exception That Proves the Rule: Ivan Boesky	107	(2)
Evidence Against Market Efficiency	109	(2)
Overview of the Evidence on Efficient Markets Theory	111	(1)
Practical Guide to Investing in the Stock Market	111	(4)
How Valuable Are Published Reports by Investment Advisers?	111	(1)
Insight 2 Should You Hire an Ape as Your Investment Adviser?	112	(1)
Should You Be Skeptical of ``Hot Tips''?	112	(1)
Efficient Markets Prescription for the Investor	112	(1)
Insight 3 What Does the Stock Market Crash of 1987 Tell Us About Rational Expectations and Efficient Markets?	113	(2)
Financial Innovation	115	(18)
Preview	115	(1)
Theory of Innovation	116	(1)
Responses to Changes in Demand Conditions	117	(1)
Adjustable-Rate Mortgages	117	(1)
Financial Futures and Options Markets	118	(1)
Responses to Changes in Supply Conditions	118	(6)
Universal Life Insurance	119	(1)
Bank Credit Cards	120	(1)
Junk Bonds	120	(1)
Rise of the Commercial Paper Market	121	(1)
Globalization of Financial Markets	121	(1)
Securitization	121	(1)
Insight 1 What's in a Name?	122	(1)
Online Financial Products and Services	123	(1)
Discount Brokers	124	(1)
Avoidance of Existing Regulations	124	(4)
Regulations behind Financial Innovation	125	(1)
Eurodollars and Bank Commercial Paper	126	(1)
NOW Accounts, ATS Accounts, and Overnight Repos	126	(1)
Money Market Mutual Funds	127	(1)
Future Evolution of the Financial System	128	(5)
What if Interest-Rate Risk Continues to Fall in the Future?	128	(1)
What if Inflation Declines in the Future?	128	(1)
Insight 2 Profiting from a New Financial Product: A Case Study of Treasury Strips	129	(4)
PART III FINANCIAL MARKETS	133	(84)
The Foreign Exchange Market	135	(20)
Preview	135	(2)
Foreign Exchange Market	137	(3)
What Are Foreign Exchange Rates?	137	(1)
Why Are Exchange Rates Important?	137	(1)
Following The Financial News Foreign Exchange Rates	138	(1)
How is Foreign Exchange Traded?	139	(1)
Exchange Rates in the Long Run	140	(4)
Law of One Price	140	(1)
Theory of Purchasing Power Parity	140	(1)
Why the Theory of Purchasing Power Parity Cannot Fully Explain Exchange Rates	141	(1)
Factors That Affect Exchange Rates in the Long Run	142	(2)
Exchange Rates in the Short Run	144	(4)
Comparing Expected Returns on Domestic and Foreign Deposits	144	(1)
Interest Parity Condition	145	(1)
Equilibrium in the Foreign Exchange Market	146	(2)
Explaining Changes in Exchange Rates	148	(3)
Shifts in the Expected-Return Schedule for Foreign Deposits	148	(2)
Shifts in the Expected-Return Schedule for Domestic Deposits	150	(1)
Insight 1 Why Are Exchange Rates So Volatile?	151	(1)
Profiting from Foreign Exchange Forecasts	151	(4)
The Money Markets	155	(22)
Preview	155	(1)
The Money Markets Defined	156	(1)
The Purpose of the Money Markets	156	(1)
Who Participates in the Money Markets?	157	(3)
The Federal Government	158	(1)
The Central Bank	158	(1)
Commercial Banks	159	(1)
Businesses	159	(1)
Other Firms	159	(1)
Individuals	160	(1)
Money Market Instruments	160	(11)
Treasury Bills	160	(1)
Treasury Bills	160	(3)
Insight 1 Treasury Bill Auctions Go Haywire	163	(1)
Federal Funds	163	(2)
Repurchase Agreements	165	(1)
Negotiable Certificates of Deposit	166	(1)
Commercial Paper	166	(3)
Banker's Acceptances	169	(1)
Eurodollars	170	(1)
Comparing Money Market Securities	171	(3)
Interest Rates	171	(1)
Liquidity	172	(1)
Following The Financial News Money Market-Rates	173	(1)
Money Market Mutual Funds	174	(3)
Description of Money Market Mutual Funds	174	(1)
MMMF Risk	175	(1)
Current Trends in MMMFs	175	(2)
The Capital Markets	177	(21)
Preview	177	(1)
Purpose of the Capital Markets	178	(1)
Capital Market Participants	178	(1)
Capital Market Trading	179	(2)
Organized Securities Exchanges	179	(1)
Over-the-Counter Markets	180	(1)
Issuing Stocks and Bonds	181	(1)
Capital Market Securities: Bonds	181	(1)
Treasury Bonds	182	(2)
Interest-Rate Risk in Bond Investment	182	(1)
Treasury Bond Interest Rates	182	(1)
Agency Bonds	183	(1)
Municipal Bonds	184	(1)
Risk in the Municipal Bond Market	185	(1)
Corporate Bonds	185	(5)
Characteristics of Corporate Bonds	186	(2)
Types of Corporate Bonds	188	(2)
Financial Guarantees for Bonds	190	(1)
Trends in the Bond Market	190	(1)
Institutional Use of the Bond Markets	191	(1)
Capital Market Securities: Stock	191	(5)
Common Stock Versus Preferred Stock	192	(1)
Valuing Stock	192	(2)
Following The Financial News Stock Prices	194	(1)
Stock Market Indexes	194	(1)
Insight 1 The History of the Dow Jones Industrial Average	195	(1)
Buying International Stocks	195	(1)
Institutional Use of the Stock Markets	196	(2)
The Mortgage Markets	198	(19)
Preview	198	(1)
What Are Mortgages?	199	(1)
Characteristics of the Residential Mortgage	199	(6)
Mortgage Interest Rates	199	(2)
Insight 1 The Discount Point Decision	201	(1)
Loan Terms	202	(1)
Mortgage Loan Amortization	203	(1)
Insight 2 Computing the Payment on Mortgage Loans	204	(1)
Types of Mortgage Loans	205	(3)
Insured and Conventional Mortgages	205	(1)
Fixed-and Adjustable-Rate Mortgages	205	(1)
Other Types of Mortgages	206	(2)
Mortgage-Lending Institutions	208	(1)
Loan Servicing	209	(1)
Secondary Mortgage Market	210	(1)
Mortgage-Backed Securities	210	(3)
Types of Pass-Through Securities	211	(2)
The Impact of Securitized Mortgages on the Mortgage Market	213	(1)
Commercial Mortgage Loans	214	(3)
PART IV THE FINANCIAL INSTITUTIONS INDUSTRY	217	(140)
The Theory of Financial Structure	219	(22)
Preview	219	(1)
Basic Facts About Financial Structure Throughout the World	219	(4)
Transaction Costs	223	(2)
How Transaction Costs Influence Financial Structure	223	(1)
How Financial Intermediaries Reduce Transaction Costs	224	(1)
Asymmetric Information: Adverse Selection and Moral Hazard	225	(1)
The Lemons Problem: How Adverse Selection Influences Financial Structure	225	(4)
Lemons in the Stock and Bond Markets	226	(1)
Tools to Help Solve Adverse Selection Problems	226	(3)
How Moral Hazard Affects the Choice Between Debt and Equity Contracts	229	(4)
Moral Hazard in Equity Contracts: The Principal-Agent Problem	230	(1)
Tools to Help Solve the principal-Agent Problem	230	(1)
Insight 1 Barings, Daiwa, and Sumitomo: Rogue Traders and the Principal-Agent Problem	231	(2)
How Moral Hazard Influences Financial Structure in Debt Markets	233	(2)
Tools to Help Solve Moral Hazard in Debt Contracts	233	(2)
Financial Crises and Aggregate Economic Activity	235	(6)
Factors Causing Financial Crises	235	(2)
Anatomy of a Financial Crisis	237	(2)
Insight 2 Case Study of a Financial Crisis: The Great Depression	239	(2)
Commercial Banks and the Banking Industry	241	(23)
Preview	241	(1)
The Bank Balance Sheet	242	(4)
Liabilities	242	(2)
Assets	244	(1)
Insight 1 Understanding Loan Loss Reserves	245	(1)
Basic Operation of a Bank	246	(3)
General Principles of Bank Management	249	(1)
Off-Balance-Sheet Activities	249	(1)
Loan Sales	249	(1)
Generation of Fee Income	249	(1)
Trading Activities and Risk Management Techniques	250	(1)
Measuring Bank Performance	250	(3)
Bank's Income Statement	250	(2)
Measures of Bank Performance	252	(1)
Structure of the Commercial Banking Industry	253	(3)
Multiple Regulatory Agencies	254	(1)
Restrictions on Branching	254	(1)
Response to Branching Restrictions	255	(1)
Nationwide Banking and Bank Consolidation	256	(1)
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994	257	(1)
International Banking	257	(2)
Structure of U. S. Banking Overseas	258	(1)
International Banks in the United States	259	(1)
Decline of Traditional Banking	259	(5)
Reasons for the Decline	260	(1)
Banks' Responses	261	(3)
Thrifts: Savings and Loans and Credit Unions	264	(20)
Preview	264	(1)
Mutual Savings Banks	265	(1)
Savings and Loan Associations	265	(1)
Mutual Saving Banks and Savings and Loans Compared	266	(1)
Savings and Loans in Trouble: The Thrift Crisis	266	(2)
Later Stages of the Crisis: Regulatory Forbearance	268	(1)
Political Economy of the Savings and Loan Crisis	268	(1)
Principal-Agent Problem for Regulators and Politicians	269	(1)
Savings and Loan Bailout: Financial Institutions Reform, Recovery, and Enforcement Act of 1989	269	(7)
Insight 1 Principal-Agent Problem in Action: Charles Keating and the Lincoln Savings and Loan Scandal	270	(2)
The Savings and Loan Industry Today	272	(3)
The Future of the Savings and Loan Industry	275	(1)
Credit Unions	276	(8)
History and Organization	276	(2)
Insight 2 The Common Bond Controversy	278	(3)
Sources of Funds	281	(1)
Uses of Funds	281	(1)
Advantages and Disadvantages of Credit Unions	282	(2)
Banking Regulation	284	(21)
Preview	284	(1)
Asymmetric Information and Bank Regulation	284	(12)
Government Safety Net: Deposit Insurance and the FDIC	285	(2)
Restrictions on Asset Holdings and Bank Capital Requirements	287	(1)
Insight 1 A Tale of Two Bank Collapses: Bank of New England and Freedom National Bank	288	(1)
Bank Supervision: Chartering and Examination	289	(1)
A New Trend in Bank Supervision: Assessment of Risk Management	290	(1)
Disclosure Requirements	291	(1)
Consumer Protection	292	(1)
Insight 2 A Global Perspective New Zealand's Disclosure-Based Experiment in Bank Regulation	292	(1)
Restrictions on Competition	293	(1)
Separation of the Banking and Securities Industries: The Glass-Steagall Act	293	(2)
Separation of the Banking and Securities Industries in Other Countries	295	(1)
International Banking Regulation	296	(1)
Problems in Regulating International Banking	296	(1)
The 1980s U. S. Banking Crisis	296	(3)
Insight 3 A Global Perspective The BCCI Scandal	298	(1)
Federal Deposit Insurance Corporation Improvement Act of 1991	299	(2)
Banking Crises Throughout the World	301	(4)
Scandinavia	301	(1)
Latin America	302	(1)
Eastern Europe	302	(1)
Japan	303	(1)
``Deja Vu All Over Again''	303	(2)
Insurance Companies and Pension Funds	305	(19)
Preview	305	(1)
Insurance Companies	306	(1)
Fundamentals of Insurance	307	(1)
Adverse Selection and Moral Hazard in Insurance	307	(1)
Selling Insurance	308	(1)
Growth and Organization of Insurance Companies	308	(1)
Types of Insurance	309	(5)
Insight 1 A Global Perspective The Woes of Lloyd's of London	310	(1)
Life Insurance	310	(2)
Health Insurance	312	(1)
Property and Casualty Insurance	313	(1)
Insurance Management	314	(3)
Screening	315	(1)
Risk-Based Premium	315	(1)
Restrictive Provisions	316	(1)
Prevention of Fraud	316	(1)
Cancellation of Insurance	316	(1)
Deductibles	316	(1)
Coinsurance	317	(1)
Limits on the Amount of Insurance	317	(1)
Pension Funds	317	(1)
Types of Pension Plans	318	(2)
Defined-Benefit Pension Plans	318	(1)
Defined-Contribution Pension Plans	318	(1)
Private and Public Pension Plans	318	(2)
Regulation of Pension Plans	320	(4)
Employee Retirement Income Security Act (ERISA)	321	(1)
Individual Retirement Plans	321	(1)
Insight 2 The Perils of Penny Benny: A Repeat of the S&L Bailout?	322	(2)
Finance Companies and Financial Conglomerates	324	(13)
Preview	324	(1)
Overview of Finance Companies	324	(1)
Purpose of Finance Companies	325	(1)
Risk in Finance Companies	326	(1)
Types of Finance Companies	327	(4)
Business (Commercial) Finance Companies	327	(3)
Consumer Finance Companies	330	(1)
Sales Finance Companies	330	(1)
Regulation of Finance Companies	331	(1)
Insight 1 The Expansion of Ford Motor Credit	331	(1)
Finance Company Assets, Liabilities, and Income	332	(2)
Assets	332	(1)
Liabilities	332	(1)
Income	333	(1)
Finance Company Growth	333	(1)
Financial Conglomerates	334	(3)
Securities Firms	337	(20)
Preview	337	(1)
Investment Banks	338	(7)
Underwriting Stocks and Bonds	338	(5)
Following the Financial News New Securities Issues	343	(1)
Private Placements	343	(1)
Mergers and Acquisitions	344	(1)
Securities Brokers and Dealers	345	(3)
Brokerage Services	345	(2)
Securities Dealers	347	(1)
Regulation of Securities Firms	348	(1)
Relationship Between Securities Firms and Commercial Banks	349	(1)
Investment Companies	349	(8)
Types of Mutual Funds	350	(2)
Fee Structure of Mutual Funds	352	(1)
Calculating a Mutual Fund's Net Asset Value	352	(1)
Regulation of Mutual Funds	353	(1)
Real Estate Investment Trusts	353	(4)
PART V THE MANAGEMENT OF FINANCIAL INSTITUTIONS	357	(40)
Risk Management in Financial Institutions	359	(14)
Preview	359	(1)
Managing Default Risk	359	(5)
Screening and Monitoring	360	(1)
Long-Term Customer Relationships	361	(1)
Loan Commitments	362	(1)
Collateral	362	(1)
Insight 1 A Global Perspective Japanese and German Banking Arrangements: A Better Way to Deal with Asymmetric Information?	363	(1)
Compensating Balances	363	(1)
Credit Rationing	364	(1)
Managing Interest-Rate Risk	364	(7)
Income Gap Analysis	366	(1)
Duration Gap Analysis	367	(2)
Example of a Nonbanking Financial Institution	369	(1)
Some Problems with Income and Duration Gap Analysis	370	(1)
Strategies for Managing Interest-Rate Risk	371	(2)
Financial Derivatives	373	(24)
Preview	373	(1)
Forward Markets	374	(1)
Interest-Rate Forward Contracts	374	(1)
Hedging with Interest-Rate Forward Contracts	374	(1)
Pros and Cons of Forward Contracts	375	(1)
Financial Futures Markets	375	(8)
Financial Futures Contracts	375	(1)
Following the Financial News Financial Futures	376	(2)
hedging with Financial Futures	378	(1)
Organization of Trading in Financial Futures Markets	378	(1)
The Globalization of Financial Futures Markets	379	(1)
Explaining the Success of Futures Markets	379	(2)
Some Problems with Financial Futures Markets	381	(1)
Stock Index Futures	382	(1)
Stock Index Futures Contracts	382	(1)
Insight 1 Program Trading and Portfolio Insurance: Were They to Blame for the Stock Market Crash of 1987?	383	(1)
Options	383	(6)
Option Contracts	384	(1)
Profits and Losses on Option and Futures Contracts	385	(3)
Hedging with Futures Options	388	(1)
Swap Markets	389	(5)
Interest-Rate Swap Contracts	389	(1)
Hedging with Interest-Rate Swaps	389	(1)
Advantages of Interest-Rate Swaps	390	(1)
Disadvantages of Interest-Rate Swaps	391	(1)
Financial Intermediaries in Interest-Rate Swaps	392	(1)
Currency Swap Contracts	392	(1)
Insight 2 The Orange County Bankruptcy	393	(1)
Are Financial Derivatives a Worldwide Time Bomb?	394	(3)
PART VI THE MONEY SUPPLY, CENTRAL BANKING, AND MONETARY POLICY	397	(43)
Introduction to the Money Supply Process	399	(21)
Preview	399	(1)
What Is Money?	400	(2)
Medium of Exchange	400	(1)
Unit of Account	401	(1)
Store of Value	401	(1)
Evolution of the Payments System	402	(2)
Measuring Money	404	(3)
The Federal Reserve's Monetary Aggregates	405	(1)
Following the Financial News The Monetary Aggregates	406	(1)
How Reliable Are the Money Data?	407	(1)
Four Players in the Money Supply Process	408	(1)
Overview of the Federal Reserve System	409	(2)
Assets	409	(1)
Liabilities	410	(1)
Multiple Deposit Creation: A Simple Model	411	(7)
How the Fed Provides Reserves to the Banking System	411	(1)
Deposit Creation: The Single Bank	412	(2)
Deposit Creation: The Banking System	414	(2)
Multiple Deposit Contraction	416	(2)
Critique of the Simple Model	418	(2)
Central Banks and the Conduct of Monetary Policy	420	(20)
Preview	420	(1)
The Structure and Independence of the Federal Reserve System	421	(3)
Federal Reserve Banks	421	(2)
Board of Governors of the Federal Reserve System	423	(1)
Federal Open Market Committee (FOMC)	423	(1)
The FOMC Meeting	424	(1)
How Independent Is the Fed?	424	(1)
Insight 1 Decoding the FOMC Directive	425	(1)
The Structure and Independence of Other Central Banks	425	(3)
Bank of England	426	(1)
Deutsche Bundesbank	426	(1)
Bank of Canada	426	(1)
Bank of Japan	426	(1)
The Trend Toward Greater Independence	427	(1)
Central Bank Independence and Macroeconomic Performance in Seventeen Countries	427	(1)
Tools of Monetary Policy	428	(4)
Open Market Operations	428	(1)
Discount Policy	429	(1)
Lender of Last Resort	430	(1)
Reserve Requirements	430	(1)
Advantages of Open Market Operations over the Other Tools	430	(1)
Insight 2 Discounting to Prevent a Financial Panic: The Black Monday Stock Market Crash of 1987	431	(1)
Goals of Monetary Policy	432	(2)
High Employment	432	(1)
Economic Growth	432	(1)
Price Stability	433	(1)
Interest-Rate Stability	433	(1)
Stability of Financial Markets	433	(1)
Stability in Foreign Exchange Markets	433	(1)
Conflict Among Goals	434	(1)
Central Bank Strategy: Use of Targets	434	(1)
Choosing the Targets	435	(2)
Criteria for Choosing Intermediate Targets	436	(1)
Criteria for Choosing Operating Targets	437	(1)
Monetary Policy Targeting Around the World	437	(3)
International Considerations	439	(1)
Insight 3 A Global Perspective International Policy Coordination: The Plaza Agreement and the Louvre Accord	439	(1)
The New International Trend in Monetary Policy Strategy: Inflation Targeting	440	(1)
Lessons from Inflation Targeting Experiences	440
Glossary	G-1
Index	I-1
Credits	C-1