Money, the Financial System, and the Economy

by Hubbard, R. Glenn

• ISBN13: 9780201726145
• ISBN10: 0201726149
• Edition: 4th
• Format: Hardcover
• Copyright: 2002-01-01
• Publisher: Addison Wesley

Summary

The Fourth Edition of Money, the Financial System, and the Economy provides students with a clear focus on how economic principles illustrate the evolution and conduct of financial markets and institutions, and how the international developments within these markets and institutions relate to economic performance. Hubbard provides a timely perspective on key issues through the inclusion of relevant new data and up-to-the-minute real-world applications. A new supplement to this classic text is a casebook featuring in-depth, real-world cases designed to expose students firsthand to decision making on key issues covered.

Table of Contents

Part 1 Introduction	1	(66)
Introducting Money and the Financial System	2	(12)
Money and the Payments System	14	(21)
Overview of the Financial System	35	(32)
Part 2 Interest Rates	67	(110)
Interest Rates and Rates of Return	68	(29)
The Theory of Portfolio Allocation	97	(19)
Determining Market Interest Rates	116	(30)
Risk Structure and Term Structure of Interest Rates	146	(31)
Part 3 Financial Markets	177	(100)
The Foreign-Exchange Market and Exchange Rates	178	(32)
Derivative Securities and Derivative Markets	210	(24)
Information and Financial Market Efficiency	234	(24)
Reducing Transactions Costs and Information Costs	258	(19)
Part 4 Financial Institutions	277	(156)
What Financial Institutions Do	278	(34)
The Business of Banking	312	(34)
The Banking Industry	346	(34)
Banking Regulation: Crisis and Response	380	(31)
Banking in the International Economy	411	(22)
Part 5 The Money Supply Process and Monetary Policy	433	(172)
The Money Supply Process	434	(37)
Changes in the Monetary Base	471	(20)
Organization of Central Banks	491	(21)
Monetary Policy Tools	512	(27)
The Conduct of Monetary Policy	539	(30)
The International Financial System and Monetary Policy	569	(36)
Part 6 The Financial System and the Macroeconomy	605
The Demand for Money	606
Linking the Financial System and the Economy: The IS-LM-FE Model	627
Aggregate Demand and Aggregate Supply	662
Money and Output in the Short Run	690
Information Problems and Channels for Monetary Policy	714
Inflation: Causes and Consequences	739