The economics of money, banking, and financial markets:
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Harlow, England, London ; New York ; Boston ; San Francisco ; Toronto ; Sydney ; Dubai ; Singapore ; Hong Kong ; Tokyo ; Seoul ; Taipei ; New Delhi ; Cape Town ; Sao Paulo ; Mexico City ; Madrid ; Amsterdam ; Munich ; Paris ; Milan
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| Ausgabe: | Thirteenth edition, global edition |
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| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | Authorized adaption from the U.S. edition, entitled "The Economics of Money, Banking, and Financial Markets", 13th Edition, ISBN 978-0-13-689435-3 by Frederic S. Mishkin, published by Pearson Education 2022. |
| Beschreibung: | 718 Seiten Illustrationen, Diagramme |
| ISBN: | 9781292409481 |
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| 245 | 1 | 0 | |a The economics of money, banking, and financial markets |c Frederic S. Mishkin (Columbia University) |
| 250 | |a Thirteenth edition, global edition | ||
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| 500 | |a Authorized adaption from the U.S. edition, entitled "The Economics of Money, Banking, and Financial Markets", 13th Edition, ISBN 978-0-13-689435-3 by Frederic S. Mishkin, published by Pearson Education 2022. | ||
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| adam_text | Brief Contents PARTI 1 Why Study Money, Banking, and Financial Markets?.......................................... 50 2 An Overview of the Financial System................................................................. 70 3 What Is Money?................................................................................................... 97 PART 2 Financial Markets 1Ί Ί 4 The Meaning of Interest Rates.......................................................................... 112 5 The Behavior of Interest Rates....... ................................................................... 134 6 The Risk and Term Structure of Interest Rates................................................... 165 7 The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis........................................................................... 189 PART3 Financial Institutions 211 8 An Economic Analysis of Financial Structure.....................................................212 9 Banking and the Management of Financial Institutions.................................... 236 10 Economic Analysis of Financial Regulation....................................................... 264 11 Banking Industry: Structure and Competition................................................... 283 12 Financial Crises in Advanced Economies.......................................................... 315 13 Financial Crises in Emerging Market Economies.............................................. 342 PART 4 Central Banking and the Conduct of Monetary Policy 365 14 Central
Banks..................................................................................................... 366 15 The Money Supply Process............................ 384 16 Tools of Monetary Policy................................................................................... 409 17 The Conduct of Monetary Policy: Strategy and Tactics..................................... 435 PART 5 International Finance and Monetary Policy 467 18 The Foreign Exchange Market......... .................................................................. 468 19 The International Financial System............................................................ PART 6 Monetary Theory 491 519 20 Quantity Theory, Inflation, and the Demand for Money................................... 520 21 The/S Curve................................................................. 538 22 The Monetary Policy and Aggregate Demand Curves....................................... 557 23 Aggregate Demand and Supply Analysis............................................................ 572 24 Monetary Policy Theory..................................................................................... 615 25 The Role of Expectations in Monetary Policy.................................................... 642 26 Transmission Mechanisms of Monetary Policy..................................................661 9
10 Brief Contents Additional Chapters on MyLab Economics 1 Nonbank Finance 2 Financial Derivatives 3 Conflicts of Interest in the Financial Services Industry
Contents in Detail Introduction 49 CHAPTER 1 Why Study Money, Banking, and Financial Markets? 50 1.1 Why Study Financial Markets?............................................................................ 50 Debt Markets and Interest Rates ................................................................................................. 51 The Stock Market ......................................................................................................................... 51 1.2 Why Study Financial Institutionsand Banking? 53 Structure of the Financial System ................................. 54 Banks and Other Financial Institutions......................... 54 Financial Innovation........................................................ Financial Crises............................................................................................................................. 55 1.3 Why Study Money and Monetary Policy?.......................................................... 55 Money and Business Cycles .......................................................................................................... 55 Money and Inflation...................................................................................................................... 56 Money and Interest Rates............................................................................ .58 Conduct of Monetary Policy .........................................................................................................58 Fiscal Policy and Monetary
Policy................................................................................................ 59 1.4 Why Study International Finance?...................................................................... 60 The Foreign Exchange Market..................................................................................................... 61 The International Financial System.............................................................................................. 62 1.5 Money, Banking, and Financial Markets and Your Career.............. ................... 62 1.6 How We Will Study Money, Banking, and Financial Markets.............................63 Concluding Remarks.................................................................................................. 64 Summary 64 · Key Terms 64 · Questions 64 · Applied Problems 65 · Data Analysis Problems 66 APPENDIX TO CHAPTER 1 Defining Aggregate Output, Income, the Price Level, and the Inflation Rate 67 Aggregate Output and Income 67 Real Versus Nominal Magnitudes................................................................................67 Aggregate Price Level.................................................................................................. 68 Growth Rates and the Inflation Rate........................................................................... 69 CHAPTER 2 An Overview of the Financial System 70 2.1 Function of Financial Markets............................................................................ 70 2.2 Structure of Financial
Markets............................................... 73 Debt and Equity Markets.......................................................................................................... ...73 Primary and Secondary Markets.................................................................................................. 73 11
12 Contents in Detail Exchanges and Over-the-Counter Markets................................. 74 Money and Capital Markets.......................................................................................................... 75 2.3 Financial Market Instruments............................................................................. 75 Money Market Instruments .................................................................................................. Following the Financial News Money Market Rates ՛ 75 76 Capital Market Instruments.......................................................................................................... 77 Following the Financial News Capital Market Interest Rates 78 2.4 Internationalization of Financial Markets........................................................... 79 Glo bal Are U.S. Capital Markets Losing Their Edge? 80 International Bond Market, Eurobonds, and Eurocurrencies .............................................. 80 World Stock Markets ..................................................................................................................... 81 2.5 Function of Financial Intermediaries: Indirect Finance....................................... 81 Following the Financial News Fereign Stock Market Indexes 82 Transaction Costs ..................................................................................................................... 82 Global The Importance of Financial Intermediaries Relative to Securities Markets: An International Comparison 83 Risk
Sharing................................................................................................................................... 84 Asymmetric Information: Adverse Selection and Moral Hazard ............................................... 84 Economies of Scope and Conflicts of Interest .............. 86 2.6 Types of Financial Intermediaries...................................................................... .86 Depository Institutions.................................................................................................................. 86 Contractual Savings Institutions ............................................................................... Investment Intermediaries ........................................................................ 2.7 Regulation of the Financial System................................................................ 88 89 90 Increasing Information Available to Investors.............................................................................. 90 Ensuring the Soundness of Financial Intermediaries............ ..................................................... 91 Financial Regulation Abroad......................................................................................................... 93 Summary 93 · Key Terms 94 · Questions 94 · Applied Problems 95 · Data Analysis Problems 96 CHAPTER 3 What Is Money? 97 3.1 Meaning of Money... ..................................................... :................................ ....97 3.2 Functions of Money........................................................ 98
Medium of Exchange.................................................................... 98 Unit of Account.............................................................................................................................. 99 Store of Value ............................................................................................................................... 100 3.3 Evolution of the Payments System.................................................................... 101 Commodity Money ..................................................................................................................... 101 Fiat Money................................................................................................................................... 101 Checks ........................................................................................................................... 101
Contents in Detail Electronic Payment...................................................................................................................... 102 E-Money ...................................................................................................................................... 102 FYI Are We Headed for a Cashless Society? 103 Will Bitcoin or Other Cryptocurrencies Become the Money of the Future?........................................................................................ 103 APPLICATION 3.4 Measuring Money............................................................................................. 104 The Federal Reserve’s Monetary Aggregates ..............................................................................105 Following the Financial News The Monetary Aggregates FYI Where Are All the U.S. Dollars? 105 106 Summary 107 · Key Terms 108 · Questions 108 · Applied Problems 109 · Data Analysis Problems 110 PART 2 Financial Markets ΊΊΊ CHAPTER 4 The Meaning of Interest Rates 112 4.1 Measuring Interest Rates................................................................................... 112 Present Value................................................................................................................................ 113 APPLICATION Simple Present Value............................................................................. 114 APPLICATION How Much Is That Jackpot Worth? .................................................... 115 Four Types of Credit Market Instruments
............................................................ 115 Yield to Maturity.......................................................................................................................... 116 APPLICATION Yield to Maturity on a Simple Loan .................................................... 116 Yield to Maturity and the Yearly Payment on a Fixed-Payment Loan ................................................................................... 118 APPLICATION APPLICATION Yield to Maturity and Bond Price for a Coupon Bond ...................... 119 APPLICATION Yield to Maturity on a Perpetuity .........................................................121 APPLICATION Yield to Maturity on a Discount Bond......................... ....................... 122 4.2 The Distinction Between Interest Rates and Returns........................................ 123 Global Negative Interest Rates? Japan First, Then the United States, Then Europe 124 Maturity and the Volatility of Bond Returns: Interest-Rate Risk.............................................. 126 Summary...................................................................................................................................... 127 4.3 The Distinction Between Real and Nominal Interest Rates.............................. 128 APPLICATION Calculating Real Interest Rates............................................................. 129 Summary 131 · Key Terms 131 · Questions 131 · Applied Problems 132 · Data Analysis Problems 133 13
14 Contents in Detail CHAPTER 4 APPENDIX Measuring Interest-Rate Risk: Duration Go to MyLab Economics CHAPTER 5 The Behavior of Interest Rates 134 5.1 Determinants of Asset Demand........................................................................ 134 Wealth..................... 135 Expected Retums ........................................................................................................................ 135 Risk...................................... 135 Liquidity ....................................................................................................................................... 136 Theory of Portfolio Choice ......................................................................................................... 136 5.2 Supply and Demand in the Bond Market......................................................... 137 Demand Curve ............................................................................................................................. 137 Supply Curve ............................................................................................................................... 138 Market Equilibrium........................... 139 Supply and Demand Analysis..................................................................................................... 140 5.3 Changes in Equilibrium Interest Rates.............................................................. 140 Shifts in the Demand for Bonds................................................................................................. 140 Shifts in the Supply of
Bonds.................. 144 APPLICATION Changes in the Interest Rate Due to a Change in Expected Inflation: The Fisher Effect ........................................................... 146 APPLICATION Changes in the Interest Rate Due to a Business Cycle Expansion ... 148 APPLICATION Explaining Current Low Interest Rates in Europe, Japan, and the United States: Low Inflation and Secular Stagnation .................... 149 5.4 Supply and Demand in the Market for Money: The Liquidity Preference Framework......................................... .....150 5.5 Changes in Equilibrium Interest Rates in the Liquidity Preference Framework................. .............................................................. 153 Shifts in the Demand for Money................................................................................................ 15ß Shifts in the Supply of Money..................................................................................................... 153 APPLICATION Changes in the Equilibrium Interest Rate Due to Changes in Income, the Price Level, or the Money Supply........................ 154 Changes in Income.............. ....................................................................................................... 155 Changes in the Price Level................................ 155 Changes in the Money Supply......................................................... ,........................................ .155 5.6 Money and Interest Rates................................................................................. 156 APPLICATION Does a
Higher Rate of Growth of the Money Supply Lower Interest Rates? ............................................................ 158 Summary 161 · Key Terms 161 · Questions 161 · Applied Problems 162 · Data Analysis Problems 163 CHAPTER 5 APPENDIX Loanable Funds Framework Go to MyLab Economics
Contents in Detail CHAPTER 6 The Risk and Term Structure of Interest Rates Ί 65 6.1 Risk Structure of Interest Rates........................................................................ 165 Default Risk............................................................................................................................... .166 FYI Conflicts of Interest at Credit-Rating Agencies and the Global Financial Crisis APPLICATION 169 The Coronavirus Pandemic and the Baa-Treasury Spread.............. 170 Liquidity ...................................................................................................................................... 170 Income Tax Considerations ........................................................................................................ 171 Summary...................................................................................................................................... 172 APPLICATION Effects of the Trump Tax Cuts on Bond Interest Rates .....................172 6.2 Term Structure of Interest Rates.. .................................................................... 173 Following the Financial News Yield Curves 173 Expectations Theory.................................................................................................................... 175 Segmented Markets Theory ................................ :...................................................................... 178 Liquidity Premium and Preferred Habitat Theories.................................................................. 179 Evidence on the Term
Structure ................................................................................................ 182 FYI The Yield Curve as a Forecasting Tool for Inflation and the Business Cycle 183 Summary...................................................................................................................................... 183 APPLICATION Interpreting Yield Curves,1980-2020 ................................................. 183 Summary 185 · Key Terms 185 · Questions 185 · Applied Problems 187 · Data Analysis Problems 187 CHAPTER? The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis 189 7.1 Computing the Price of Common Stock.......................................................... 189 The One-Period Valuation Model .............................................................................................190 The Generalized Dividend Valuation Model.............................................................................. 191 The Gordon Growth Model ...................................................................................................... 191 7.2 How the Market Sets Stock Prices.................................................................... 192 APPLICATION Monetary Policy and Stock Prices ....................................................... 194 APPLICATION The Coronavirus Stock Market Crash of 2020................................... 194 7.3 The Theory of Rational Expectations................................................................ 194 Formal Statement of the Theory
................................................................................................ 196 Rationale Behind the Theory ............ ........................................................................................ 196 Implications of the Theory ....................................................................................................... 197 7.4 The Efficient Market Hypothesis: Rational Expectations in Financial Markets ..198 Rationale Behind the Hypothesis .............................................................................................. 199 Random-Walk Behavior of Stock Prices .................................................................................... 200 Global Should Foreign Exchange Rates Follow a Random Walk? APPLICATION 201 Practical Guide to Investing in the Stock Market.............................. 201 How Valuable Are Reports Published by Investment Advisers? .............................................. 201 15
16 Contents in Detail Should You Be Skeptical of Hot Tips? ....................................................................................... 202 FYI Should You Hire an Ape as Your Investment Adviser? 203 Do Stock Prices Always Rise When There Is Good News?.......................................................203 Efficient Market Prescription for the Investor........................................................................... 203 7.5 Why the Efficient Market Hypothesis Does Not Imply That Financial Markets Are Efficient................................................................... 204 What Do Stock Market Crashes Tell Us About the Efficient Market Hypothesis and the Efficiency of Financial Markets? ............................................................................................. 205 APPLICATION 7.6 Behavioral Finance............................................................................................205 Summary 206 · Key Terms 207 · Questions 207 · Applied Problems 208 · Data Analysis Problems 209 PART3 CHAPTER 8 An Economic Analysis of Financial Structure 212 8.1 Basic Facts About Financial Structure Throughout The World......................... 212 8.2 Transaction Costs...............................................................................................215 How Transaction Costs Influence Financial Structure............................................................. 215 How Financial Intermediaries Reduce Transaction Costs ........................................................ 216 8.3 Asymmetric Information: Adverse
Selection and Moral Hazard...................... 217 8.4 The Lemons Problem: How Adverse Selection Influences Financial Structure 217 Lemons in the Stock and Bond Markets............................................... 218 Tools to Help Solve Adverse Selection Problems ,..................................................................... 219 FYI The Enron Implosion 220 8.5 How Moral Hazard Affects the Choice Between Debt and Equity Contracts ....223 Moral Hazard in Equity Contracts: The Principal-Agent Problem.......................................... 223 Tools to Help Solve the Principal-Agent Problem .................................................................... 224 8.6 How Moral Hazard Influences Financial Structure in Debt Markets................ 226 Tools to Help Solve Moral Hazard in Debt Contracts .............................................................. 226 Summary............................................................................... 228 APPLICATION Financial Development and Economic Growth.................................229 FYI The Tyranny of Collateral 230 Is China a Counterexample to the Importance of Financial Development? ... .............................................................................................. 231 APPLICATION Summary 232 · Key Terms 233 · Questions 233 · Applied Problems 234 · Data Analysis Problems 235 CHAPTER 9 Banking and the Management of Financial Institutions 236 9.1 The Bank Balance Sheet.................................................................................... 236
Liabilities...................................................................................................................................... 236 Assets ....................................................................... 239
Contents in Detail 9.2 Basic Banking..................................................................................................... 240 9.3 General Principles of Bank Management......................................................... 243 Liquidity Management and the Role of Reserves ...................................................................... 243 Asset Management....................................................................................................................... 246 Liability Management ......................................... ՛....................................................................... 247 Capital Adequacy Management ................................................................................................. 248 APPLICATION Strategies for Managing Bank Capital .................................................250 How a Capital Crunch Caused a Credit Crunch During the Global Financial Crisis........................................................................................... 251 APPLICATION 9.4 Managing Credit Risk........................................................................................ 251 Screening and Monitoring .................................................................................... 252 Long-Term Customer Relationships.......................................................................................... 253 Loan Commitments..................................................................................................................... 254 Collateral and Compensating Balances
..................................................................................... 254 Credit Rationing.......................................................................................................................... 254 9.5 Managing Interest-Rate Risk.............................................................................. 255 Gap and Duration Analysis........................... APPLICATION 256 Strategies for Managing Interest-Rate Risk......................................... 257 9.6 Off-Balance-Sheet Activities.............................................................................. 257 Loan Sales .................................................................................................................................... 258 Generation of Fee Income .......................................................................................................... 258 Trading Activities and Risk Management Techniques.............................................................. 258 Global Barings, Daiwa, Sumitomo, Société Générale, and JP Morgan Chase: Rogue Traders and the Principal-Agent Problem 259 Summary 260 · Key Terms 261 · Questions 261 · Applied Problems 262 · Data Analysis Problem 263 CHAPTER 9 APPENDIX 1 Duration Gap Analysis Go to MyLab Economics CHAPTER 9 APPENDIX 2 Measuring Bank Performance Go to MyLab Economics CHAPTER 10 Economic Analysis of Financial Regulation 264 10.1 Asymmetric Information as a Rationale for Financial Regulation.................. 264 Government Safety Net
.............................................................................................................. 264 Global The Spread of Government Deposit Insurance Throughout the World: Is This a Good Thing? 266 Drawbacks of the Government Safety Net................................................................................. 267 10.2 Types of Financial Regulation.......................................................................... 269 Restrictions on Asset Holdings .............................................. 269 Capital Requirements ..................................................................................................................270 17
18 Contents in Detail Global Where Is the Basel Accord Heading After the Global Financial Crisis? 271 Prompt Corrective Action........................................................................................................... 272 Financial Supervision: Chartering and Examination ................................................................272 Assessment of Risk Management ............................................................................................... 273 Disclosure Requirements ............................................................................................................ 274 Consumer Protection................................................................................................................... 275 Restrictions on Competition....................................................................................................... 275 Summary.......................................................................................................................................276 Global International Financial Regulation 277 Summary 279 · Key Terms 280 · Questions 280 Data Analysis Problems 281 Applied Problems 281 · CHAPTER 10 APPENDIX Banking Crises Throughout the World Go to MyLab Economics ., CHAPTER 11 Banking Industry: Structure and Competition 283 11.1 Historical Development of the Banking System............................................. 283 Multiple Regulatory Agencies ..................................................................................................... 285 11.2 Financial Innovation and the Growth of
the Shadow Banking System ....... 286 Responses to Changes in Demand Conditions: Interest-Rate Volatility .................................. 287 Responses to Changes in Supply Conditions: Information Technology .............................. ..288 Securitization and the Shadow Banking System....................................................................... 290 Avoidance of Existing Regulations ............................................................................................. 292 FYI Bruce Bent and the Money Market Mutual Fund Panic of 2008 294 Financial Innovation and the Decline of Traditional Banking................................................. 294 11.3 Structure of the U.S. Commercial Banking Industry....................................... 297 Restrictions on Branching........................................................................................................... 299 Response to Branching Restrictions .......................................................................................... 2^9 11.4 Bank Consolidation and Nationwide Banking............ ................................... 300 The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ........................... 302 What Will the Structure of the U.S. Banking Industry Look Like in the Future? ................. 302 Global Comparison of Banking Structure in the United States and Abroad 303 Are Bank Consolidation and Nationwide Banking Good Things?՜....................................... ...303 11.5 Separation of Banking and Other Financial Service
Industries....................... 304 Erosion of Glass-Steagall............................................................. 304 The Gramm-Leach-Bliley Financial Services Modernization Act of 1999: Repeal of Glass-Steagall 305 Implications for Financial Consolidation.................................................................................. 305 Separation of Banking and Other Financial Services Industries Throughout the World..... 305 FYI The Global Financial Crisis and the Demise of Large, Free-Standing Investment Banks 306
Contents in Detail 11.6 Thrift Industry: Regulation and Structure....................................................... 306 Savings and Loan Associations................................................................................................... 307 Mutual Savings Banks................................................................................................................. 307 Credit Unions.............................................................................................................................. 307 11.7 International Banking..................................................................................... .308 Eurodollar Market ....................................................................................................................... 308 309 Global Ironic Birth of the Eurodollar Market Structure of U.S. Banking Overseas........................................................................................... 309 Foreign Banks in the United States ........................................................................................... 310 Summary 311 · Key Terms 312 · Questions 312 · Data Analysis Problems 313 CHAPTER 12 Financial Crises in Advanced Economies Global The European Sovereign Debt Crisis 315 316 12.1 What is a Financial Crisis?............................................................................... 316 12.2 Dynamics of Financial Crises.................................................................... 317 Stage One: Initial Phase
.............................................................................................................. 317 Stage Two: Banking Crisis........................................................................................................... 319 Stage Three: Debt Deflation....................................................................................................... 321 APPLICATION The Mother of All Financial Crises: The Great Depression............ 321 The U.S. Stock Market Crash ..................................................................................................... 321 Worldwide Decline in Asset Prices.............................................................................................321 Bank Failures............. ;........................................................................................... 323 Economic Contraction and Debt Deflation............................................................... 323 12.3 The Global Financial Crisis of 2007-2009....................................................... 323 Causes of the 2007-2009 Financial Crisis................................................................................324 FYI Collateralized Debt Obligations (CDOs) and Credit Default Swaps 325 Effects of the 2007-2009 Financial Crisis.................................................................................326 Inside the Fed Was the Fed to Blame for the Housing Price Bubble? 327 Height of the 2007-2009 Financial Crisis .................................................... ,..........................330 APPLICATION
Could the Coronavirus Pandemic Have Led to a Financial Crisis?...... 332 12.4 Government Intervention and the Recovery.................................................. 333 Short-Term Responses and Recovery ........................................................................................ 333 Global Latvia’s Different and Controversial Response: Expansionary Contraction 334 12.5 Stabilizing the Global Financial System: Long-Term Responses..................... 334 Global Financial Regulatory Framework..................... 334 Policy Areas at the National Level .............................................................................................. 335 FYI The LIBOR Scandal 337 12.6 Future Regulationsand Policy Areas at the International Level..................... 337 Bilateral and Multilateral Supervisory Cooperation................................................................. 338 19
20 Contents in Detail Collective Supervisory Cooperation........................................................................................... 338 Collectively Coordinated Macroeconomic Stability Plans........................................................ 338 Self-Discipline .............................................................................................................................. 338 Summary 339 · Key Terms 340 · Questions 340 · Data Analysis Problems 341 CHAPTER 13 Financial Crises in Emerging Market Economies 342 13.1 Dynamics of Financial Crises in Emerging Market Economies....................... 342 Stage One: Initial Phase.............................................................................................................. 343 Stage Two: Currency Crises....................................................................................................... 346 Stage Three: Full-Fledged Financial Crisis............................................................................... 347 APPLICATION Crisis in South Korea, 1997-1998...................................................... 348 Financial Liberalization and Globalization Mismanaged........................................................ 349 Perversion of the Financial Liberalization and Globalization Process: Chaebols and the South Korean Crisis......................................................................................................... 350 Stock Market Decline and Failure‘Of Firms Increase Uncertainty.......................................... 352 Adverse Selection and
Moral Hazard Problems Worsen and the Economy Contracts......... 353 Currency Crisis Ensues.............................................................................................................. 353 Final Stage: Currency Crisis Triggers Full-Fledged Financial Crisis....................................... 353 Recovery Commences............................:.................................................................................... 355 Global China and the “Noncrisis” in 1997-1998 APPLICATION 355 The Argentine Financial Crisis, 2001-2002....................................... 356 Severe Fiscal Imbalances.............................................. Adverse Selection and Moral Hazard Problems Worsen......................................................... Bank Panic Begins................................................................................... Currency Crisis Ensues......................... .................................................................................... Currency Crisis Triggers Full-Fledged Financial Crisis......................................................... Recovery Begins........................................................................................................................... 356 356 357 357 357 359 Global When an Advanced Economy Is Like an Emerging Market Economy: The Icelandic Financial Crisis of 2008 360 «։ 13.2 Preventing Emerging Market Financial Crises....................................... Beef Up Prudential Regulation and Supervision of Banks.............. ........................................
Encourage Disclosure and Market-Based Discipline................................................................ Limit Currency Mismatch..,....................................................................................................... Sequence Financial Liberalization............................................................................................. 361 361 362 362 362 Summary 363 · Key Terms 363 · Questions 363 · Data Analysis Problems 364 Central Banking and the Conduct of Monetary Policy CHAPTER 14 Central Banks 365 366 14.1 Origins of the Central Banking System.............................................. Global Who Should Own Central Banks? 367 366
Contents in Detail 14.2 Variations in the Functions and Structures of Central Banks.......................... 368 The European Central Bank, the Euro System, and the European System of Central Banks.............................................................................................................. 368 Decision-making Bodies of the ECB......................................................................................... 369 How Monetary Policy Is Conducted within the ECB............................................................ :. 372 Global The Importance of the Bundesbank within the ECB 372 Global Are Non-Euro Central Banks Constrained by Membership of the EU? 374 The Federal Reserve System...................................................................................................... 374 Difference between the ECB and the Fed..................................................................................375 The Bank of England................................................................................................................. 376 Global Brexit and the BoE 376 14.3 Structure of Central Banks of Larger Economies............................................ 377 The Bank of Canada ....................................................................................................................377 The Bank ofJapan ....................................................................................................................... 378 The People’s Bank of
China.........................................................................................................379 14.4 Structure and Independence of Central Banks of Emerging Market Economies................................................................................. 380 14.5 Central Banks Independence ..........................................................................380 The Case for Independence ....................................................................................................... 381 The Case against Independence................................................................................................. 381 The Trend toward Greater Independence.................................................................................. 381 Summary 382 · Key Terms 383 · Questions 383 · Data Analysis Problems 383 CHAPTER 15 The Money Supply Process 384 15.1 Three Players in the Money Supply Process................................................... 384 15.2 The Fed s Balance Sheet............................ 385 Liabilities........................... i......................................................................................................... 385 Assets ............................................................................................................................................386 15.3 Control of the Monetary Base......................................................................... 387 Federal Reserve Open Market Operations................................................................................. 387 Shifts from
Deposits into Currency................................................................ 388 Loans to Financial Institutions................................................................................................... 389 Other Factors That Affect the Monetary Base ................................................................ 390 Overview of the Fed’s Ability to Control the Monetary Base................................................... 390 15.4 Multiple Deposit Creation: A Simple Model.................................................. 391 Deposit Creation: The Single Bank . .......................................................................................... 391 Deposit Creation: The Banking System..................................................................................... 392 Deriving the Formula for Multiple Deposit Creation............................................................... 395 Critique of the Simple Model ...................................... 396 15.5 Factors that Determine the Money Supply.................................................... 397 Changes in the Nonborrowed Monetary Base, MBn................................................................. 397 Changes in Borrowed Reserves, BR, from the Fed....................................................................397 Changes in the Required Reserve Ratio, rr ................................................................................397 21
22 Contents in Detail Changes in Excess Reserves .................................................................. 398 Changes in Currency Holdings.................................................................................................. 398 15.6 Overview of the Money Supply Process......................................................... 398 15.7 The Money Multiplier..................................................................................... 399 Deriving the Money Multiplier .................................................................................................. 399 Intuition Behind the Money Multiplier..................................................................................... 401 Money Supply Response to Changes in the Factors..................................................................402 Quantitative Easing and the Money Supply During the Global Financial and the Coronavirus Crises............................................ 403 APPLICATION Summary 405 · Key Terms 406 · Questions 406 · Applied Problems 407 · Data Analysis Problems 408 CHAPTER 15 APPENDIX 1 The Fed s Balance Sheet and the Monetary Base Go to MyLab Economics CHAPTER 15 APPENDIX 2 The M2 Money Multiplier ՝ Go to MyLab Economics CHAPTER 15 APPENDIX 3 Explaining the Behavior of the Currency Ratio Go to MyLab Economics CHAPTER 15 APPENDIX 4 The Great Depression Bank Panics, 1930-1933, and the Money Supply Go to MyLab Economics CHAPTER 16 Tools of Monetary Policy 409 16.1 The Market for Reserves and the Federal Funds Rate..................................... 409
Demand and Supply in the Market for Reserves ...................................................................... 410 How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate ..................... Հ11 How the Federal Reserve’s Operating Procedures Limit Fluctuations in the Federal Funds Rate .................................................... 415 APPLICATION 16.2 Conventional Monetary Policy Tools............................................................. 416 Open Market Operations...........................................................................................................417 Inside the Fed A Day at the Trading Desk 418 Discount Policy and the Lender of Last Resort.................................................................... 419 Inside the Fed Using Discount Policy to Prevent a Financial Panic 421 Reserve Requirements............................................................................................................ 422 Interest on Excess Reserves........................................................................................................ 422 16.3 Nonconventional Monetary Policy Tools and Quantitative Easing in the Wake of the Global Financial Crisis and the Coronavirus Pandemic 423 Liquidity Provision...................................................................................................................... 423 Large-Scale Asset Purchases....................................................................... ;............................... 424
Contents in Detail Inside the Fed Fed Lending Facilities During the Global Financial and Coronavirus Crises 425 Quantitative Easing Versus Credit Easing................................................................................. 426 Forward Guidance.......................................................................................................................428 Negative Interest Rates on Banks’ Deposits .................................................................... J 429 16.4 Monetary Policy Tools of the European Central Bank................................... 430 Open Market Operations............................................................................................................430 Lending to Banks...................................................................................................................... 431 Interest on Excess Reserves........................................................................................................ 431 Reserve Requirements................................................................................................................. 431 Summary 431 · Key Terms 432 · Questions 432 · Applied Problems 433 · Data Analysis Problems 434 CHAPTER 17 The Conduct of Monetary Policy: Strategy and Tactics 435 17.1 The Price Stability Goal and the Nominal Anchor......................................... 435 The Role of a Nominal Anchor .................................................................................................. 436 The Time-Inconsistency
Problem............................................................................................... 436 17.2 Other Goals of Monetary Policy.......................................... 437 High Employment and Output Stability ................................................................................... 437 Economic Growth ....................................................................................................................... 438 Stability of Financial Markets .................................................................................................... 438 Interest-Rate Stability.................................................................................................................. 438 Stability in Foreign Exchange Markets...................................................................................... 439 17.3 Should Price Stability be the Primary Goal of Monetary Policy?................... 439 Hierarchical Versus Dual Mandates........................................................................................... 439 Price Stability as the Primary, Long-Run Goal of Monetary Policy......................................... 440 17.4 Inflation Targeting........................................................................................... 440 Inflation Targeting in New Zealand, Canada, and the United Kingdom ............................... 441 Advantages of Inflation Targeting .............................................................................................. 443 Disadvantages of Inflation
Targeting......................................................................................... 445 17.5 The Evolution of the Federal Reserve s Monetary Policy Strategy................. 446 The Fed’s “Just Do It” Monetary Policy Strategy ....................................................................... 446 The Long Road to Inflation Targeting ....................................................................................... 448 Inside the Fed Ben Bernanke’s Advocacy of Inflation Targeting Global The European Central Bank’s Monetary Policy Strategy 449 449 17.6 Lessons for Monetary Policy Strategy from the Global Financial Crisis......... 450 Implications for Inflation Targeting .......................................................................................... 451 Inside the Fed The Fed’s New Monetary Policy Strategy: Average Inflation Targeting 452 17.7 Should Central Banks Try to Stop Asset-Price Bubbles?......... ....................... 453 Two Types of Asset-Price Bubbles........................................................ 453 The Debate over Whether Central Banks Should Try to Pop Bubbles ....................................454 17.8 Tactics: Choosing the Policy Instrument......................................................... 457 Criteria for Choosing the Policy Instrument ............................................................................ 459 23
24 Contents in Detail 17.9 Tactics: The Taylor Rule....................................................................................460 Inside the Fed The Fed’s Use of the Taylor Rule 462 Summary 463 · Key Terms 464 · Questions 464 · Applied Problems 465 · Data Analysis Problems 465 CHAPTER 17 APPENDIX 1 Monetary Targeting Go to MyLab Economics CHAPTER 17 APPENDIX 2 A Brief History of Federal Reserve Policymaking Go to MyLab Economics PART 5 International Finance and Monetary Policy CHAPTER 18 The Foreign Exchange Market 467 468 18.1 Foreign Exchange Market............................................................................... 468 Following the Financial News Foreign Exchange Rates 469 What Are Foreign Exchange Rates?............................................................................................ 469 Why Are Exchange Rates Important? .......................... 469 How Is Foreign Exchange Traded?.................... ..470 18.2 Exchange Rates in the Long Run................... 471 Theory of Purchasing Power Parity ............................................................................................ 471 APPLICATION Burgernomics: Big Macs and PPP .................................. 473 Factors That Affect Exchange Rates in the Long Run................................................................475 18.3 Exchange Rates in the Short Run: A Supply and Demand Analysis............... 477 Supply Curve for Domestic Assets............................................................................................. 477 Demand Curve for Domestic
Assets........................................................................................... 478 Equilibrium in the Foreign Exchange Market .......................................................................... 479 18.4 Explaining Changes in Exchange Rates........................................................... 479 Shifts in the Demand for Domestic Assets................................................................................. 479 Recap: Factors That Change the Exchange Rate ....................................................................... 482 Effects of Changes in Interest Rates on the Equilibrium Exchange Rate ........................... ...................................................................... 484 APPLICATION APPLICATION The Global Financial Crisis and the Dollar ...................................... .486 APPLICATION Brexit and the British Pound................................................................ 487 Summary 488 · Key Terms 489 · Questions 489 · Applied Problems 490 · Data Analysis Problems 490 APPENDIX TO CHAPTER 18 The Interest Parity Condition Go to MyLab Economics
Contents in Detail CHAPTER 19 The International Financial System 491 19.1 Intervention in the Foreign Exchange Market................................................ 491 Foreign Exchange Intervention and the Money Supply........................................................ .-.491 Global Variation in Central Banks’ Activism and Method of Intervention on Foreign Exchange Markets 492 Unsterilized Intervention...................................................................................................... 494 Sterilized Intervention ................................................................................................................ 495 19.2 Balance of Payments ...................................................................................... 495 Current Account ......................................................................................................................... 496 Financial Account ....................................................................................................................... 496 Global Should We Worry About the Large and Recurrent Trade Deficit? 497 19.3 Exchange Rate Regimes in the International Financial System...................... 498 Gold Standard ............................................................................................................................. 498 The Bretton Woods System .........................................................................................................498 How a Fixed Exchange Rate Regime Works
............................................................................. 499 Speculative Attacks...................................................................................................................... 501 APPLICATION The Foreign Exchange Crisis of September 1992 ............................. 501 The Policy Trilemma................................................................................................................... 503 APPLICATION How Did China Accumulate $4 Trillion of International Reserves? .......504 Monetary Unions......................................................................................................................... 504 Managed Float.......................................... 505 Global Will the Euro Survive? 505 19.4 Capital Controls............................................................................................... 506 Controls on Capital Outflows.................................................................................................... 506 Controls on Capital Inflows...................................... 506 19.5 The Role of the IMF ......................................................................................... 507 Should the IMF Act as an International Lender of Last Resort? .............................................. 507 19.6 International Considerations and Monetary Policy........................................ 508 Direct Effects of the Foreign Exchange Market on Monetary Policy....................................... 508 Exchange Rate
Considerations........................................................................ í.......................... 509 19.7 To PEG or Not to Peg: Exchange-Rate Targeting as an Alternative Monetary Policy Strategy............................................................................509 Advantages of Exchange-Rate Targeting.................................................................................... 509 Disadvantages of Exchange-Rate Targeting................................................................................510 When Is Exchange-Rate Targeting Desirable for Industrialized Countries?........................... 512 When Is Exchange-Rate Targeting Desirable for Emerging Market Countries? .....................513 Currency Boards............................................................ 513 Global Argentina’s Currency Board 514 Dollarization ............................................................................................................................... 514 Summary 515 · Key Terms 516 · Questions 516 · Applied Problems 517 · Data Analysis Problems 518 25
26 Contents in Detail PART 6 Monetary Theory 519 CHAPTER 20 Quantity Theory, Inflation, and the Demand for Money 520 20.1 Quantity Theory of Money.............................................................................. 520 Velocity of Money and Equation of Exchange .......................................................................... 520 From the Equation of Exchange to the Quantity Theory of Money ....................................... 522 Quantity Theory and the Price Level ........................................................................................ 522 Quantity Theory and Inflation....................................................................................................523 APPLICATION Testing the Quantity Theory of Money............................................ 524 20.2 Budget Deficits and Inflation..........................................................................526 Government Budget Constraint............................................................................................... 526 FYI Modern Monetary Theory 528 Hyperinflation 528 APPLICATION The Zimbabwean Hyperinflation........... ......................................... 529 20.3 Keynesian Theories of Money Demand..........................................................529 Transactions Motive..................................................................................................................... 530 Precautionary Motive.......................... ........................................................................................ 530 Speculative
Motive ...................................................................................................................... 530 Putting the Three Motives Together........................................................................................... 530 20.4 Portfolio Theories of Money Demand...... ......................................................531 Theory of Portfolio Choice and Keynesian Liquidity Preference......................................... ...531 Other Factors That Affect the Demand for Money.................................................................... 532 Summary....................................................................................................................................... 532 20.5 Empirical Evidence on the Demand for Money......................... 533 Interest Rates and Money Demand ...................................................... 533 Stability of Money Demand ........................................................................................................ 534 Summary 534 · Key Terms 535 · Questions 535 · Applied Problems 536 · Data Analysis Problems 537 CHAPTER 21 The IS Curve 538 21.1 Planned Expenditure and Aggregate Demand................................................ 538 21.2 The Components of Aggregate Demand.................................................... 539 Consumption Expenditure .................................................................................................... 539 FYI Meaning of the Word Investment 540 Planned Investment Spending 540 Government Purchases and
Taxes.............................................................................................. 542 Net Exports.................................................................................................................................. 543 21.3 Goods Market Equilibrium............................................................... 544 Solving for Goods Market Equilibrium..................................................................................... 544 Deriving the IS Curve................................................................................. 545
Contents in Detail 21.4 Understanding the IS Curve................................................................................. 545 What the IS Curve Tells Us: Intuition ....................................................................................... 545 What the ÍS Curve Tells Us: Numerical Example ................................. 545 Why the Economy Heads Toward Equilibrium........................................................................ 547 21.5 Factors that Shift the IS Curve............................................................................. 547 Changes in Government Purchases........................................................................................... 547 APPLICATION The Vietnam War Buildup, 1964-1969 .............................................. 548 Changes in Taxes......................................................................................................................... 549 APPLICATION The Fiscal Stimulus Package of 2009 ................................................. 550 Changes in Autonomous Spending............................................................................................551 Changes in Financial Frictions .................................................................................................. 553 Summary of Factors That Shift the IS Curve ............................................................................ 553 Summary 553 · Key Terms 553 · Questions 554 · Applied Problems 555 · Data Analysis Problems 556 CHAPTER 22 The Monetary Policy and Aggregate Demand Curves 557
22.1 The Federal Reserve and Monetary Policy.........................................................557 22.2 The Monetary Policy Curve.................................................................................. 558 Why the Monetary Policy Curve Has an Upward Slope........................................................... 558 Shifts in the MP Curve................................................................................................................ 559 Movements Along Versus Shifts in the MP Curve.....................................................................560 Movements Along the MP Curve: The Rise in the Federal Funds Rate Target, 2004-2006 and 2015-2019 . APPLICATION 561 Shift in the MP Curve: Autonomous Monetary Easing During the Global Financial and Coronavirus Crises ............................................. 561 APPLICATION 22.3 The Aggregate Demand Curve............................................................................ 562 Deriving the Aggregate Demand Curve Graphically................................................................ 563 FYI Deriving the Aggregate Demand Curve Algebraically 563 Factors That Shift the Aggregate Demand Curve...................................................................... 565 Summary 568 · Key Terms 568 · Questions 568 · Applied Problems 570 · Data Analysis Problems 571 CHAPTER 23 Aggregate Demand and Supply Analysis 572 23.1 Business Cycles and Inflation ...............................................................................572 Business Cycles
........................................................................................................................... 572 Inflation......... .............................................................................................................................. 575 23.2 Aggregate Demand............................................................................................... 576 Components of Aggregate Demand .................. Following the Financial News Aggregate Output, Unemployment, and Inflation 576 576 Deriving the Aggregate Demand Curve..................................................................................... 577 Factors That Shift the Aggregate Demand Curve................. 577 27
28 Contents in Detail FYI What Does Autonomous Mean? 578 23.3 Aggregate Supply............................................................................................. 581 Long-Run Aggregate Supply Curve............................................................................................ 581 Short-Run Aggregate Supply Curve ........................................................................................... 582 Price Stickiness and the Short-Run Aggregate Supply Curve.................................................. 584 23.4 Shifts in the Aggregate Supply Curves............................................................. 584 Shifts in the Long-Run Aggregate Supply Curve ...................................................................... 584 Shifts in the Short-Run Aggregate Supply Curve..................................................................... 585 23.5 Equilibrium in Aggregate Demand and Supply Analysis................................ 588 Short-Run Equilibrium.............................................................................................................. 589 Aggregate Demand and Supply Analysis Using an Aggregate Output Index......................... 589 How the Short-Run Equilibrium Moves to the Long-Run Equilibrium over Time ............... 590 Self-Correcting Mechanism........................................................................................................593 23.6 Changes in Equilibrium: Aggregate Demand Shocks...................................... 593 APPLICATION The Volcker Disinflation, 1980-1986
............................................. 595 23.7 Changes in Equilibrium: Aggregate Supply (Inflation) Shocks........................ 596 APPLICATION Negative Supply Shocks, 1973-1975 and 1978-1980 .................... 598 23.8 Conclusions from Aggregate Demand and Supply Analysis..........................599 APPLICATION AD/AS Analysis of the Great Recession of 2007-2009 .................... 600 APPLICATION An AD/AS Analysis of the Covid-19 Recession ................................ 601 Summary 604 · Key Terms 604 · Questions 605 · Applied Problems 605 · Data Analysis Problems 606 APPENDIX TO CHAPTER 23 The Phillips Curve and the Short-Run Aggregate Supply Curve 23.A 607 1 The Phillips. Curve........................................................... 607 Phillips Curve Analysis in the 1960s............ 607 The Friedman-Phelps Phillips Curve Analysis.......................................................................... 608 « FYI The Phillips Curve Trade-Off and Macroeconomic Policy in the 1960s 609 The Phillips Curve After the 1960s............................................................................................. 611 The Modern Phillips Curve......................................................................................................... 611 The Modern Phillips Curve with Adaptive (Backward-Looking) Expectations...................... 612 23.A2 The Short-Run Aggregate Supply Curve................................................... .....613 CHAPTER 23 APPENDIX 1 The Effects of Macroeconomic Shocks on Asset Prices Go to MyLab Economics CHAPTER 23
APPENDIX 2 Aggregate Demand and Supply: A Numerical Example Go to MyLab Economics
Contents in Detail CHAPTER 24 Monetary Policy Theory 615 24.1 Response of Monetary Policy to Shocks.........................................................615 Response to an Aggregate Demand Shock................................................................................ 616 Response to a Supply Shock ............................. 617 The Bottom Line: The Relationship Between Stabilizing Inflation and Stabilizing Economic Activity............................................................................................. 620 24.2 How Actively Should Policymakers Try to Stabilize Economic Activity?....... 621 Lags and Policy Implementation...............................................................................................622 FYI The Activist/Nonactivist Debate over the Obama Fiscal Stimulus Package 623 24.3 Inflation: Always and Everywhere a Monetary Phenomenon........................ 623 24.4 Causes of Inflationary Monetary Policy.......................................................... 624 High Employment Targets and Inflation................................................................................... 625 APPLICATION The Great Inflation ............................................................................... 628 24.5 Monetary Policy at the Effective Lower Bound.............................................. 630 Deriving the Aggregate Demand Curve with the Effective Lower Bound .............................. 630 The Disappearance of the Self-Correcting Mechanism at the Effective Lower Bound.......... 632 APPLICATION Nonconventional Monetary
Policy and Quantitative Easing ...........633 Liquidity Provision...................................................................................................................... 634 Asset Purchases and Quantitative Easing ..................................................................................635 Management of Expectations.....................................................................................................636 APPLICATION Abenomics and the Shift in Japanese Monetary Policy in 2013 ...... 636 Summary 639 · Key Terms 639 · Questions 639 · Applied Problems 640 · Data Analysis Problems 641 CHAPTER 25 The Role of Expectations in Monetary Policy 642 25.1 Lucas Critique of Policy Evaluation ................................................................ 642 Econometric Policy Evaluation .................................................................................................. 643 APPLICATION The Term Structure of Interest Rates................................................... 643 25.2 Policy Conduct: Rules or Discretion?........................................ .՝..................... 644 Discretion and the Time-Inconsistency Problem..................................................................... 644 Types of Rules..............................................................................................................................645 The Case for Rules............................................... ·....................................................................... 645 FYI The Political Business Cycle and Richard Nixon 646
The Case for Discretion ............................................................................................................. 646 Constrained Discretion ......................................................................................................... 647 Global The Demise of Monetary Targeting in Switzerland 647 25.3 The Role of Credibility and a Nominal Anchor...............................................648 Benefits of a Credible Nominal Anchor..................................................................................... 648 Credibility and Aggregate Demand Shocks ................... 649 Credibility and Aggregate Supply Shocks .................................... 651 29
30 Contents in Detail A Tale of Three Oil Price Shocks 652 Credibility and Anti-Inflation Policy....................... .654 APPLICATION Global Ending the Bolivian Hyperinflation: A Successful Anti-Inflation Program 655 25.4 Approaches to Establishing Central Bank Credibility .656 Nominal GDP Targeting .............................................................. Appoint “Conservative” Central Bankers ................................... .656 .657 Inside the Fed The Appointment of Paul Volcker, Anti-Inflation Hawk 657 Summary 658 · Key Terms 658 · Questions 659 · Applied Problems 660 · Data Analysis Problems 660 CHAPTER 26 Transmission Mechanisms of Monetary Policy 661 26.1 Transmission Mechanisms of Monetary Policy............................................... 662 Traditional Interest-Rate Channels ............................................................................................. 662 Other Asset Price Channels ........................................................................................................ 663 Credit View.................................................................................................................................. 666 FYI Consumers’ Balance Sheets and the Great Depression 669 Why Are Credit Channels Likely to Be Important?..... ............................................................. 670 APPLICATION The Great Recession.............................................................................. 670 26.2 Lessons for Monetary Policy........................................................................... 671
APPLICATION Applying the Monetary Policy Lessons to Japan’s Two Lost Decades ......672 Summary 673 · Key Terms 673 · Questions 674 · Applied Problems 675 · Data Analysis Problems 675 Chapter 26 APPENDIX Evaluating Empirical Evidence: The Debate Over the Importance of Money in Economic Fluctuations Go to MyLab Economics Glossary------------------------------- ------------------------------------------------------------------- 677 Index____________________________________________________________ 689
Contents in Detail Additional Contents on MyLab Economics The following chapters and appendices are available on MyLab Economics CHAPTER! Nonbank Finance 1 Insurance..................................................................................................................... 1 Life Insurance.................................................................................................................................. Property and Casualty Insurance.................................................................................................. The Competitive Threatfrom the Banking Industry..................................................................... Credit Insurance............................................................................................................................. FYI The AIG Blowup 1 2 4 4 5 FYI The Global Financial Crisis and the Monoline Insurers 6 APPLICATION Insurance Management............................................................................ 6 Screening........................................................................................................................................ Risk-Based Premiums..................................................................................................................... Restrictive Provisions..................................... Prevention of Fraud...................................................................................................................... ·. Cancellation of
Insurance........................................................................... Deductibles..................................................................................................................................... Coinsurance.................................................................................................................................... Limits on the Amount of Insurance.............................................................................................. Summary......................................................................................................................................... 7 7 7 8 8 8 8 8 9 9 Pension Funds...................................... Private Pension Plans....... ..................................................................................... 10 Public Pension Plans..................................................................................................................... 10 FYI Should Social Security Be Privatized? 11 12 Finance Companies............................................. Securities Market Operations...................................................................................... 13 Investment Banking...................................................................................................................... 13 Securities Brokers and Dealers.................................................................................................... 14 Organized
Exchanges................................................................................................................... 14 Mutual Funds...................................................................................... 1....................... 15 FYI Sovereign Wealth Funds: Are They a Danger? 16 Money Market Mutual Funds...................................................................................................... 17 Hedge Funds................................................................................................................ 17 Private Equity and Venture Capital Funds......................................................... ;......... 18 Government Financial Intermediation........................................................................19 Federal Credit Agencies................................................ ;.............................................................. 19 FYI The Global Financial Crisis and the Bailout of Fannie Mae and Freddie Mac Summary 21 · Key Terms 22 · Questions 22 · Applied Problems 23 · Data Analysis Problems 23 20 31
32 Contents in Detail CHAPTER 2 Financial Derivatives 1 Hedging..................... 1 Interest-Rate Forward Contracts.................................................................................... 2 APPLICATION Hedging with Interest-Rate Forward Contracts......................................... 2 Pros and Cons of Forward Contracts............................................................................. 3 Financial Futures Contracts and Markets...................................................................... 4 APPLICATION Hedging with Financial Futures.......................................................................5 Organization of Trading in Financial Futures Markets................................................................ 7 The Globalization of Financial Futures Markets........................................................................... 8 Explaining the Success of Futures Markets.................................................................................. 8 APPLICATION Hedging Foreign Exchange Risk.................................................................. 10 Hedging Foreign Exchange Risk with Forward Contracts........................................................ 10 Hedging Foreign Exchange Risk with Futures Contracts........................................ 10 Options............. .........................*.................................................................................11 Options Contracts.................................................................................................................. 12
Profits and Losses on Option and Futures Contracts................................................................ 12 APPLICATION Hedging with Future Options............................................................ 15 Factors Affecting Option Premiums..................................................... Summary......................................................................... 16 17 Swaps............................................................................................................................ 18 Interest-Rate Swap Contracts....................................... 18 APPLICATION Hedging with Interest-Rate Swaps........................... 19 Advantages of Interest-Rate Swaps................................ 19 Disadvantages of Interest-Rate Swaps.......................................................................................... 20 Financial Intermediaries in Interest-Rate Swaps................................... 20 Credit Derivatives... ....................................................................... 20 Credit Options................................. 21 Credit Swaps.......................................................................... 21 Credit-Linked Notes..................................................................................................................... *22 APPLICATION Lessons from the Global Financial Crisis: When Are Financial Derivatives Likely to Be a Worldwide Time Bomb? 22 Summary 24 · Key Terms 24 · Questions 25 · Applied Problems 25 · Data Analysis Problems 26 CHAPTERS Conflicts of Interest in the Financial
Services Industry 1 What Are Conflicts of Interest, and Why Are They Important?..................................... 2 Why Do We Care About Conflicts of Interest?........................................ 2 Ethics and Conflicts of Interest...................................................................................... 2 Types of Conflicts of Interest.......................................................................................... 3 Underwriting and Research in Investment Banking.................................................................... 3 Auditing and Consulting in Accounting Firms....................................... 4 Credit Assessment and Consulting in Credit-Rating Agencies.................................................... 4
Contents in Detail FYI The Collapse of Arthur Andersen 5 Universal Banking.......................................................................................................................5 FYI Why Do Issuers of Securities Pay to Have Their Securities Rated? FYI Banksters 6 7 Can the Market Limit Exploitations of Conflicts of Interest?........................................ 7 What Has Been Done to Remedy Conflicts of Interest?............................................... 9 Sarbanes-Oxley Act of 2002........................................................................................................ 10 Global Legal Settlement of 2002................................................................................................. 10 Dodd-Frank Bill of 2010............................................................................................................. 11 A Framework for Evaluating Policies to Remedy Conflicts of Interest....................... 11 Approaches to Remedying Conflicts of Interest......................................................................... 12 APPLICATION Evaluating Sarbanes-Oxley, the Global Legal Settlement, and the Dodd-Frank Bill................................................................................ 14 Summary 16 · Key Terms 17 · Questions 17 CHAPTER APPENDICES IN MYLAB ECONOMICS Chapter 4: Measuring Interest-Rate Risk: Duration Chapter 5: Loanable Funds Framework Chapter 9: Duration Gap Analysis Chapter 9: Measuring Bank Performance Chapter 10: Banking Crises Throughout the World Chapter 15 The Fed s Balance Sheet
and the Monetary Base Chapter 15: The M2 Money Multiplier Chapter 15: Explaining the Behavior of the Currency Ratio Chapter 15: The Great Depression Bank Panics, 1930-1933, and the Money Supply Chapter 17: Monetary Targeting Chapter 17: A Brief History of Federal Reserve Policymaking Chapter 18: The Interest Parity Condition Chapter 23: The Effects of Macroeconomic Shocks on Asset Prices Chapter 23: Aggregate Demand and Supply: A Numerical Example Chapter 26: Evaluating Empirical Evidence: The Debate Over the Importance of Money in Economic Fluctuations 33
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Brief Contents PARTI 1 Why Study Money, Banking, and Financial Markets?. 50 2 An Overview of the Financial System. 70 3 What Is Money?. 97 PART 2 Financial Markets 1Ί Ί 4 The Meaning of Interest Rates. 112 5 The Behavior of Interest Rates. . 134 6 The Risk and Term Structure of Interest Rates. 165 7 The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis. 189 PART3 Financial Institutions 211 8 An Economic Analysis of Financial Structure.212 9 Banking and the Management of Financial Institutions. 236 10 Economic Analysis of Financial Regulation. 264 11 Banking Industry: Structure and Competition. 283 12 Financial Crises in Advanced Economies. 315 13 Financial Crises in Emerging Market Economies. 342 PART 4 Central Banking and the Conduct of Monetary Policy 365 14 Central
Banks. 366 15 The Money Supply Process. 384 16 Tools of Monetary Policy. 409 17 The Conduct of Monetary Policy: Strategy and Tactics. 435 PART 5 International Finance and Monetary Policy 467 18 The Foreign Exchange Market. . 468 19 The International Financial System. PART 6 Monetary Theory 491 519 20 Quantity Theory, Inflation, and the Demand for Money. 520 21 The/S Curve. 538 22 The Monetary Policy and Aggregate Demand Curves. 557 23 Aggregate Demand and Supply Analysis. 572 24 Monetary Policy Theory. 615 25 The Role of Expectations in Monetary Policy. 642 26 Transmission Mechanisms of Monetary Policy.661 9
10 Brief Contents Additional Chapters on MyLab Economics 1 Nonbank Finance 2 Financial Derivatives 3 Conflicts of Interest in the Financial Services Industry
Contents in Detail Introduction 49 CHAPTER 1 Why Study Money, Banking, and Financial Markets? 50 1.1 Why Study Financial Markets?. 50 Debt Markets and Interest Rates . 51 The Stock Market . 51 1.2 Why Study Financial Institutionsand Banking? 53 Structure of the Financial System . 54 Banks and Other Financial Institutions. 54 Financial Innovation. Financial Crises. 55 1.3 Why Study Money and Monetary Policy?. 55 Money and Business Cycles . 55 Money and Inflation. 56 Money and Interest Rates. .58 Conduct of Monetary Policy .58 Fiscal Policy and Monetary
Policy. 59 1.4 Why Study International Finance?. 60 The Foreign Exchange Market. 61 The International Financial System. 62 1.5 Money, Banking, and Financial Markets and Your Career. . 62 1.6 How We Will Study Money, Banking, and Financial Markets.63 Concluding Remarks. 64 Summary 64 · Key Terms 64 · Questions 64 · Applied Problems 65 · Data Analysis Problems 66 APPENDIX TO CHAPTER 1 Defining Aggregate Output, Income, the Price Level, and the Inflation Rate 67 Aggregate Output and Income 67 Real Versus Nominal Magnitudes.67 Aggregate Price Level. 68 Growth Rates and the Inflation Rate. 69 CHAPTER 2 An Overview of the Financial System 70 2.1 Function of Financial Markets. 70 2.2 Structure of Financial
Markets. 73 Debt and Equity Markets. .73 Primary and Secondary Markets. 73 11
12 Contents in Detail Exchanges and Over-the-Counter Markets. 74 Money and Capital Markets. 75 2.3 Financial Market Instruments. 75 Money Market Instruments . Following the Financial News Money Market Rates ՛ 75 76 Capital Market Instruments. 77 Following the Financial News Capital Market Interest Rates 78 2.4 Internationalization of Financial Markets. 79 Glo bal Are U.S. Capital Markets Losing Their Edge? 80 International Bond Market, Eurobonds, and Eurocurrencies . 80 World Stock Markets . 81 2.5 Function of Financial Intermediaries: Indirect Finance. 81 Following the Financial News Fereign Stock Market Indexes 82 Transaction Costs . 82 Global The Importance of Financial Intermediaries Relative to Securities Markets: An International Comparison 83 Risk
Sharing. 84 Asymmetric Information: Adverse Selection and Moral Hazard . 84 Economies of Scope and Conflicts of Interest . 86 2.6 Types of Financial Intermediaries. .86 Depository Institutions. 86 Contractual Savings Institutions . Investment Intermediaries . 2.7 Regulation of the Financial System. 88 89 90 Increasing Information Available to Investors. 90 Ensuring the Soundness of Financial Intermediaries. . 91 Financial Regulation Abroad. 93 Summary 93 · Key Terms 94 · Questions 94 · Applied Problems 95 · Data Analysis Problems 96 CHAPTER 3 What Is Money? 97 3.1 Meaning of Money. . :. .97 3.2 Functions of Money. 98
Medium of Exchange. 98 Unit of Account. 99 Store of Value . 100 3.3 Evolution of the Payments System. 101 Commodity Money . 101 Fiat Money. 101 Checks . 101
Contents in Detail Electronic Payment. 102 E-Money . 102 FYI Are We Headed for a Cashless Society? 103 Will Bitcoin or Other Cryptocurrencies Become the Money of the Future?. 103 APPLICATION 3.4 Measuring Money. 104 The Federal Reserve’s Monetary Aggregates .105 Following the Financial News The Monetary Aggregates FYI Where Are All the U.S. Dollars? 105 106 Summary 107 · Key Terms 108 · Questions 108 · Applied Problems 109 · Data Analysis Problems 110 PART 2 Financial Markets ΊΊΊ CHAPTER 4 The Meaning of Interest Rates 112 4.1 Measuring Interest Rates. 112 Present Value. 113 APPLICATION Simple Present Value. 114 APPLICATION How Much Is That Jackpot Worth? . 115 Four Types of Credit Market Instruments
. 115 Yield to Maturity. 116 APPLICATION Yield to Maturity on a Simple Loan . 116 Yield to Maturity and the Yearly Payment on a Fixed-Payment Loan . 118 APPLICATION APPLICATION Yield to Maturity and Bond Price for a Coupon Bond . 119 APPLICATION Yield to Maturity on a Perpetuity .121 APPLICATION Yield to Maturity on a Discount Bond. . 122 4.2 The Distinction Between Interest Rates and Returns. 123 Global Negative Interest Rates? Japan First, Then the United States, Then Europe 124 Maturity and the Volatility of Bond Returns: Interest-Rate Risk. 126 Summary. 127 4.3 The Distinction Between Real and Nominal Interest Rates. 128 APPLICATION Calculating Real Interest Rates. 129 Summary 131 · Key Terms 131 · Questions 131 · Applied Problems 132 · Data Analysis Problems 133 13
14 Contents in Detail CHAPTER 4 APPENDIX Measuring Interest-Rate Risk: Duration Go to MyLab Economics CHAPTER 5 The Behavior of Interest Rates 134 5.1 Determinants of Asset Demand. 134 Wealth. 135 Expected Retums . 135 Risk. 135 Liquidity . 136 Theory of Portfolio Choice . 136 5.2 Supply and Demand in the Bond Market. 137 Demand Curve . 137 Supply Curve . 138 Market Equilibrium. 139 Supply and Demand Analysis. 140 5.3 Changes in Equilibrium Interest Rates. 140 Shifts in the Demand for Bonds. 140 Shifts in the Supply of
Bonds. 144 APPLICATION Changes in the Interest Rate Due to a Change in Expected Inflation: The Fisher Effect . 146 APPLICATION Changes in the Interest Rate Due to a Business Cycle Expansion . 148 APPLICATION Explaining Current Low Interest Rates in Europe, Japan, and the United States: Low Inflation and Secular Stagnation . 149 5.4 Supply and Demand in the Market for Money: The Liquidity Preference Framework. .150 5.5 Changes in Equilibrium Interest Rates in the Liquidity Preference Framework. . 153 Shifts in the Demand for Money. 15ß Shifts in the Supply of Money. 153 APPLICATION Changes in the Equilibrium Interest Rate Due to Changes in Income, the Price Level, or the Money Supply. 154 Changes in Income. . 155 Changes in the Price Level. 155 Changes in the Money Supply. ,. .155 5.6 Money and Interest Rates. 156 APPLICATION Does a
Higher Rate of Growth of the Money Supply Lower Interest Rates? . 158 Summary 161 · Key Terms 161 · Questions 161 · Applied Problems 162 · Data Analysis Problems 163 CHAPTER 5 APPENDIX Loanable Funds Framework Go to MyLab Economics
Contents in Detail CHAPTER 6 The Risk and Term Structure of Interest Rates Ί 65 6.1 Risk Structure of Interest Rates. 165 Default Risk. .166 FYI Conflicts of Interest at Credit-Rating Agencies and the Global Financial Crisis APPLICATION 169 The Coronavirus Pandemic and the Baa-Treasury Spread. 170 Liquidity . 170 Income Tax Considerations . 171 Summary. 172 APPLICATION Effects of the Trump Tax Cuts on Bond Interest Rates .172 6.2 Term Structure of Interest Rates. . 173 Following the Financial News Yield Curves 173 Expectations Theory. 175 Segmented Markets Theory . :. 178 Liquidity Premium and Preferred Habitat Theories. 179 Evidence on the Term
Structure . 182 FYI The Yield Curve as a Forecasting Tool for Inflation and the Business Cycle 183 Summary. 183 APPLICATION Interpreting Yield Curves,1980-2020 . 183 Summary 185 · Key Terms 185 · Questions 185 · Applied Problems 187 · Data Analysis Problems 187 CHAPTER? The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis 189 7.1 Computing the Price of Common Stock. 189 The One-Period Valuation Model .190 The Generalized Dividend Valuation Model. 191 The Gordon Growth Model . 191 7.2 How the Market Sets Stock Prices. 192 APPLICATION Monetary Policy and Stock Prices . 194 APPLICATION The Coronavirus Stock Market Crash of 2020. 194 7.3 The Theory of Rational Expectations. 194 Formal Statement of the Theory
. 196 Rationale Behind the Theory . '. 196 Implications of the Theory . 197 7.4 The Efficient Market Hypothesis: Rational Expectations in Financial Markets .198 Rationale Behind the Hypothesis . 199 Random-Walk Behavior of Stock Prices . 200 Global Should Foreign Exchange Rates Follow a Random Walk? APPLICATION 201 Practical Guide to Investing in the Stock Market. 201 How Valuable Are Reports Published by Investment Advisers? . 201 15
16 Contents in Detail Should You Be Skeptical of Hot Tips? . 202 FYI Should You Hire an Ape as Your Investment Adviser? 203 Do Stock Prices Always Rise When There Is Good News?.203 Efficient Market Prescription for the Investor. 203 7.5 Why the Efficient Market Hypothesis Does Not Imply That Financial Markets Are Efficient. 204 What Do Stock Market Crashes Tell Us About the Efficient Market Hypothesis and the Efficiency of Financial Markets? . 205 APPLICATION 7.6 Behavioral Finance.205 Summary 206 · Key Terms 207 · Questions 207 · Applied Problems 208 · Data Analysis Problems 209 PART3 CHAPTER 8 An Economic Analysis of Financial Structure 212 8.1 Basic Facts About Financial Structure Throughout The World. 212 8.2 Transaction Costs.215 How Transaction Costs Influence Financial Structure. 215 How Financial Intermediaries Reduce Transaction Costs . 216 8.3 Asymmetric Information: Adverse
Selection and Moral Hazard. 217 8.4 The Lemons Problem: How Adverse Selection Influences Financial Structure 217 Lemons in the Stock and Bond Markets. 218 Tools to Help Solve Adverse Selection Problems ,. 219 FYI The Enron Implosion 220 8.5 How Moral Hazard Affects the Choice Between Debt and Equity Contracts .223 Moral Hazard in Equity Contracts: The Principal-Agent Problem. 223 Tools to Help Solve the Principal-Agent Problem . 224 8.6 How Moral Hazard Influences Financial Structure in Debt Markets. 226 Tools to Help Solve Moral Hazard in Debt Contracts . 226 Summary. 228 APPLICATION Financial Development and Economic Growth.229 FYI The Tyranny of Collateral 230 Is China a Counterexample to the Importance of Financial Development? . . 231 APPLICATION Summary 232 · Key Terms 233 · Questions 233 · Applied Problems 234 · Data Analysis Problems 235 CHAPTER 9 Banking and the Management of Financial Institutions 236 9.1 The Bank Balance Sheet. 236
Liabilities. 236 Assets . 239
Contents in Detail 9.2 Basic Banking. 240 9.3 General Principles of Bank Management. 243 Liquidity Management and the Role of Reserves . 243 Asset Management. 246 Liability Management . ՛. 247 Capital Adequacy Management . 248 APPLICATION Strategies for Managing Bank Capital .250 How a Capital Crunch Caused a Credit Crunch During the Global Financial Crisis. 251 APPLICATION 9.4 Managing Credit Risk. 251 Screening and Monitoring . 252 Long-Term Customer Relationships. 253 Loan Commitments. 254 Collateral and Compensating Balances
. 254 Credit Rationing. 254 9.5 Managing Interest-Rate Risk. 255 Gap and Duration Analysis. APPLICATION 256 Strategies for Managing Interest-Rate Risk. 257 9.6 Off-Balance-Sheet Activities. 257 Loan Sales . 258 Generation of Fee Income . 258 Trading Activities and Risk Management Techniques. 258 Global Barings, Daiwa, Sumitomo, Société Générale, and JP Morgan Chase: Rogue Traders and the Principal-Agent Problem 259 Summary 260 · Key Terms 261 · Questions 261 · Applied Problems 262 · Data Analysis Problem 263 CHAPTER 9 APPENDIX 1 Duration Gap Analysis Go to MyLab Economics CHAPTER 9 APPENDIX 2 Measuring Bank Performance Go to MyLab Economics CHAPTER 10 Economic Analysis of Financial Regulation 264 10.1 Asymmetric Information as a Rationale for Financial Regulation. 264 Government Safety Net
. 264 Global The Spread of Government Deposit Insurance Throughout the World: Is This a Good Thing? 266 Drawbacks of the Government Safety Net. 267 10.2 Types of Financial Regulation. 269 Restrictions on Asset Holdings . 269 Capital Requirements .270 17
18 Contents in Detail Global Where Is the Basel Accord Heading After the Global Financial Crisis? 271 Prompt Corrective Action. 272 Financial Supervision: Chartering and Examination .272 Assessment of Risk Management . 273 Disclosure Requirements . 274 Consumer Protection. 275 Restrictions on Competition. 275 Summary.276 Global International Financial Regulation 277 Summary 279 · Key Terms 280 · Questions 280 Data Analysis Problems 281 Applied Problems 281 · CHAPTER 10 APPENDIX Banking Crises Throughout the World Go to MyLab Economics ., CHAPTER 11 Banking Industry: Structure and Competition 283 11.1 Historical Development of the Banking System. 283 Multiple Regulatory Agencies . 285 11.2 Financial Innovation and the Growth of
the "Shadow Banking System". 286 Responses to Changes in Demand Conditions: Interest-Rate Volatility . 287 Responses to Changes in Supply Conditions: Information Technology . .288 Securitization and the Shadow Banking System. 290 Avoidance of Existing Regulations . 292 FYI Bruce Bent and the Money Market Mutual Fund Panic of 2008 294 Financial Innovation and the Decline of Traditional Banking. 294 11.3 Structure of the U.S. Commercial Banking Industry. 297 Restrictions on Branching. 299 Response to Branching Restrictions . 2^9 11.4 Bank Consolidation and Nationwide Banking. . 300 The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 . 302 What Will the Structure of the U.S. Banking Industry Look Like in the Future? . 302 Global Comparison of Banking Structure in the United States and Abroad 303 Are Bank Consolidation and Nationwide Banking Good Things?՜. .303 11.5 Separation of Banking and Other Financial Service
Industries. 304 Erosion of Glass-Steagall. 304 The Gramm-Leach-Bliley Financial Services Modernization Act of 1999: Repeal of Glass-Steagall 305 Implications for Financial Consolidation. 305 Separation of Banking and Other Financial Services Industries Throughout the World. 305 FYI The Global Financial Crisis and the Demise of Large, Free-Standing Investment Banks 306
Contents in Detail 11.6 Thrift Industry: Regulation and Structure. 306 Savings and Loan Associations. 307 Mutual Savings Banks. 307 Credit Unions. 307 11.7 International Banking. .308 Eurodollar Market . 308 309 Global Ironic Birth of the Eurodollar Market Structure of U.S. Banking Overseas. 309 Foreign Banks in the United States . 310 Summary 311 · Key Terms 312 · Questions 312 · Data Analysis Problems 313 CHAPTER 12 Financial Crises in Advanced Economies Global The European Sovereign Debt Crisis 315 316 12.1 What is a Financial Crisis?. 316 12.2 Dynamics of Financial Crises. 317 Stage One: Initial Phase
. 317 Stage Two: Banking Crisis. 319 Stage Three: Debt Deflation. 321 APPLICATION The Mother of All Financial Crises: The Great Depression. 321 The U.S. Stock Market Crash . 321 Worldwide Decline in Asset Prices.321 Bank Failures. ;. 323 Economic Contraction and Debt Deflation. 323 12.3 The Global Financial Crisis of 2007-2009. 323 Causes of the 2007-2009 Financial Crisis.324 FYI Collateralized Debt Obligations (CDOs) and Credit Default Swaps 325 Effects of the 2007-2009 Financial Crisis.326 Inside the Fed Was the Fed to Blame for the Housing Price Bubble? 327 Height of the 2007-2009 Financial Crisis . ,.330 APPLICATION
Could the Coronavirus Pandemic Have Led to a Financial Crisis?. 332 12.4 Government Intervention and the Recovery. 333 Short-Term Responses and Recovery . 333 Global Latvia’s Different and Controversial Response: Expansionary Contraction 334 12.5 Stabilizing the Global Financial System: Long-Term Responses. 334 Global Financial Regulatory Framework. 334 Policy Areas at the National Level . 335 FYI The LIBOR Scandal 337 12.6 Future Regulationsand Policy Areas at the International Level. 337 Bilateral and Multilateral Supervisory Cooperation. 338 19
20 Contents in Detail Collective Supervisory Cooperation. 338 Collectively Coordinated Macroeconomic Stability Plans. 338 Self-Discipline . 338 Summary 339 · Key Terms 340 · Questions 340 · Data Analysis Problems 341 CHAPTER 13 Financial Crises in Emerging Market Economies 342 13.1 Dynamics of Financial Crises in Emerging Market Economies. 342 Stage One: Initial Phase. 343 Stage Two: Currency Crises. 346 Stage Three: Full-Fledged Financial Crisis. 347 APPLICATION Crisis in South Korea, 1997-1998. 348 Financial Liberalization and Globalization Mismanaged. 349 Perversion of the Financial Liberalization and Globalization Process: Chaebols and the South Korean Crisis. 350 Stock Market Decline and Failure‘Of Firms Increase Uncertainty. 352 Adverse Selection and
Moral Hazard Problems Worsen and the Economy Contracts. 353 Currency Crisis Ensues. 353 Final Stage: Currency Crisis Triggers Full-Fledged Financial Crisis. 353 Recovery Commences.:. 355 Global China and the “Noncrisis” in 1997-1998 APPLICATION 355 The Argentine Financial Crisis, 2001-2002. 356 Severe Fiscal Imbalances. Adverse Selection and Moral Hazard Problems Worsen. Bank Panic Begins. Currency Crisis Ensues. . Currency Crisis Triggers Full-Fledged Financial Crisis. Recovery Begins. 356 356 357 357 357 359 Global When an Advanced Economy Is Like an Emerging Market Economy: The Icelandic Financial Crisis of 2008 360 «։ 13.2 Preventing Emerging Market Financial Crises. Beef Up Prudential Regulation and Supervision of Banks. .
Encourage Disclosure and Market-Based Discipline. Limit Currency Mismatch.,. Sequence Financial Liberalization. 361 361 362 362 362 Summary 363 · Key Terms 363 · Questions 363 · Data Analysis Problems 364 Central Banking and the Conduct of Monetary Policy CHAPTER 14 Central Banks 365 366 14.1 Origins of the Central Banking System. Global Who Should Own Central Banks? 367 366
Contents in Detail 14.2 Variations in the Functions and Structures of Central Banks. 368 The European Central Bank, the Euro System, and the European System of Central Banks. 368 Decision-making Bodies of the ECB. 369 How Monetary Policy Is Conducted within the ECB. :. 372 Global The Importance of the Bundesbank within the ECB 372 Global Are Non-Euro Central Banks Constrained by Membership of the EU? 374 The Federal Reserve System. 374 Difference between the ECB and the Fed.375 The Bank of England. 376 Global Brexit and the BoE 376 14.3 Structure of Central Banks of Larger Economies. 377 The Bank of Canada .377 The Bank ofJapan . 378 The People’s Bank of
China.379 14.4 Structure and Independence of Central Banks of Emerging Market Economies. 380 14.5 Central Banks Independence .380 The Case for Independence . 381 The Case against Independence. 381 The Trend toward Greater Independence. 381 Summary 382 · Key Terms 383 · Questions 383 · Data Analysis Problems 383 CHAPTER 15 The Money Supply Process 384 15.1 Three Players in the Money Supply Process. 384 15.2 The Fed's Balance Sheet. 385 Liabilities. i. 385 Assets .386 15.3 Control of the Monetary Base. 387 Federal Reserve Open Market Operations. 387 Shifts from
Deposits into Currency. 388 Loans to Financial Institutions. 389 Other Factors That Affect the Monetary Base . 390 Overview of the Fed’s Ability to Control the Monetary Base. 390 15.4 Multiple Deposit Creation: A Simple Model. 391 Deposit Creation: The Single Bank . . 391 Deposit Creation: The Banking System. 392 Deriving the Formula for Multiple Deposit Creation. 395 Critique of the Simple Model . 396 15.5 Factors that Determine the Money Supply. 397 Changes in the Nonborrowed Monetary Base, MBn. 397 Changes in Borrowed Reserves, BR, from the Fed.397 Changes in the Required Reserve Ratio, rr .397 21
22 Contents in Detail Changes in Excess Reserves . 398 Changes in Currency Holdings. 398 15.6 Overview of the Money Supply Process. 398 15.7 The Money Multiplier. 399 Deriving the Money Multiplier . 399 Intuition Behind the Money Multiplier. 401 Money Supply Response to Changes in the Factors.402 Quantitative Easing and the Money Supply During the Global Financial and the Coronavirus Crises. 403 APPLICATION Summary 405 · Key Terms 406 · Questions 406 · Applied Problems 407 · Data Analysis Problems 408 CHAPTER 15 APPENDIX 1 The Fed's Balance Sheet and the Monetary Base Go to MyLab Economics CHAPTER 15 APPENDIX 2 The M2 Money Multiplier ՝ Go to MyLab Economics CHAPTER 15 APPENDIX 3 Explaining the Behavior of the Currency Ratio Go to MyLab Economics CHAPTER 15 APPENDIX 4 The Great Depression Bank Panics, 1930-1933, and the Money Supply Go to MyLab Economics CHAPTER 16 Tools of Monetary Policy 409 16.1 The Market for Reserves and the Federal Funds Rate. 409
Demand and Supply in the Market for Reserves . 410 How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate . Հ11 How the Federal Reserve’s Operating Procedures Limit Fluctuations in the Federal Funds Rate . 415 APPLICATION 16.2 Conventional Monetary Policy Tools. 416 Open Market Operations.417 Inside the Fed A Day at the Trading Desk 418 Discount Policy and the Lender of Last Resort. 419 Inside the Fed Using Discount Policy to Prevent a Financial Panic 421 Reserve Requirements. 422 Interest on Excess Reserves. 422 16.3 Nonconventional Monetary Policy Tools and Quantitative Easing in the Wake of the Global Financial Crisis and the Coronavirus Pandemic 423 Liquidity Provision. 423 Large-Scale Asset Purchases. ;. 424
Contents in Detail Inside the Fed Fed Lending Facilities During the Global Financial and Coronavirus Crises 425 Quantitative Easing Versus Credit Easing. 426 Forward Guidance.428 Negative Interest Rates on Banks’ Deposits . J 429 16.4 Monetary Policy Tools of the European Central Bank. 430 Open Market Operations.430 Lending to Banks. 431 Interest on Excess Reserves. 431 Reserve Requirements. 431 Summary 431 · Key Terms 432 · Questions 432 · Applied Problems 433 · Data Analysis Problems 434 CHAPTER 17 The Conduct of Monetary Policy: Strategy and Tactics 435 17.1 The Price Stability Goal and the Nominal Anchor. 435 The Role of a Nominal Anchor . 436 The Time-Inconsistency
Problem. 436 17.2 Other Goals of Monetary Policy. 437 High Employment and Output Stability . 437 Economic Growth . 438 Stability of Financial Markets . 438 Interest-Rate Stability. 438 Stability in Foreign Exchange Markets. 439 17.3 Should Price Stability be the Primary Goal of Monetary Policy?. 439 Hierarchical Versus Dual Mandates. 439 Price Stability as the Primary, Long-Run Goal of Monetary Policy. 440 17.4 Inflation Targeting. 440 Inflation Targeting in New Zealand, Canada, and the United Kingdom . 441 Advantages of Inflation Targeting . 443 Disadvantages of Inflation
Targeting. 445 17.5 The Evolution of the Federal Reserve's Monetary Policy Strategy. 446 The Fed’s “Just Do It” Monetary Policy Strategy . 446 The Long Road to Inflation Targeting . 448 Inside the Fed Ben Bernanke’s Advocacy of Inflation Targeting Global The European Central Bank’s Monetary Policy Strategy 449 449 17.6 Lessons for Monetary Policy Strategy from the Global Financial Crisis. 450 Implications for Inflation Targeting . 451 Inside the Fed The Fed’s New Monetary Policy Strategy: Average Inflation Targeting 452 17.7 Should Central Banks Try to Stop Asset-Price Bubbles?. . 453 Two Types of Asset-Price Bubbles. 453 The Debate over Whether Central Banks Should Try to Pop Bubbles .454 17.8 Tactics: Choosing the Policy Instrument. 457 Criteria for Choosing the Policy Instrument . 459 23
24 Contents in Detail 17.9 Tactics: The Taylor Rule.460 Inside the Fed The Fed’s Use of the Taylor Rule 462 Summary 463 · Key Terms 464 · Questions 464 · Applied Problems 465 · Data Analysis Problems 465 CHAPTER 17 APPENDIX 1 Monetary Targeting Go to MyLab Economics CHAPTER 17 APPENDIX 2 A Brief History of Federal Reserve Policymaking Go to MyLab Economics PART 5 International Finance and Monetary Policy CHAPTER 18 The Foreign Exchange Market 467 468 18.1 Foreign Exchange Market. 468 Following the Financial News Foreign Exchange Rates 469 What Are Foreign Exchange Rates?. 469 Why Are Exchange Rates Important? . 469 How Is Foreign Exchange Traded?. .470 18.2 Exchange Rates in the Long Run. 471 Theory of Purchasing Power Parity . 471 APPLICATION Burgernomics: Big Macs and PPP . 473 Factors That Affect Exchange Rates in the Long Run.475 18.3 Exchange Rates in the Short Run: A Supply and Demand Analysis. 477 Supply Curve for Domestic Assets. 477 Demand Curve for Domestic
Assets. 478 Equilibrium in the Foreign Exchange Market . 479 18.4 Explaining Changes in Exchange Rates. 479 Shifts in the Demand for Domestic Assets. 479 Recap: Factors That Change the Exchange Rate . 482 Effects of Changes in Interest Rates on the Equilibrium Exchange Rate . . 484 APPLICATION APPLICATION The Global Financial Crisis and the Dollar . .486 APPLICATION Brexit and the British Pound. 487 Summary 488 · Key Terms 489 · Questions 489 · Applied Problems 490 · Data Analysis Problems 490 APPENDIX TO CHAPTER 18 The Interest Parity Condition Go to MyLab Economics
Contents in Detail CHAPTER 19 The International Financial System 491 19.1 Intervention in the Foreign Exchange Market. 491 Foreign Exchange Intervention and the Money Supply. .-.491 Global Variation in Central Banks’ Activism and Method of Intervention on Foreign Exchange Markets 492 Unsterilized Intervention. 494 Sterilized Intervention . 495 19.2 Balance of Payments . 495 Current Account . 496 Financial Account . 496 Global Should We Worry About the Large and Recurrent Trade Deficit? 497 19.3 Exchange Rate Regimes in the International Financial System. 498 Gold Standard . 498 The Bretton Woods System .498 How a Fixed Exchange Rate Regime Works
. 499 Speculative Attacks. 501 APPLICATION The Foreign Exchange Crisis of September 1992 . 501 The Policy Trilemma. 503 APPLICATION How Did China Accumulate $4 Trillion of International Reserves? .504 Monetary Unions. 504 Managed Float. 505 Global Will the Euro Survive? 505 19.4 Capital Controls. 506 Controls on Capital Outflows. 506 Controls on Capital Inflows. 506 19.5 The Role of the IMF . 507 Should the IMF Act as an International Lender of Last Resort? . 507 19.6 International Considerations and Monetary Policy. 508 Direct Effects of the Foreign Exchange Market on Monetary Policy. 508 Exchange Rate
Considerations. í. 509 19.7 To PEG or Not to Peg: Exchange-Rate Targeting as an Alternative Monetary Policy Strategy.509 Advantages of Exchange-Rate Targeting. 509 Disadvantages of Exchange-Rate Targeting.510 When Is Exchange-Rate Targeting Desirable for Industrialized Countries?. 512 When Is Exchange-Rate Targeting Desirable for Emerging Market Countries? .513 Currency Boards. 513 Global Argentina’s Currency Board 514 Dollarization . 514 Summary 515 · Key Terms 516 · Questions 516 · Applied Problems 517 · Data Analysis Problems 518 25
26 Contents in Detail PART 6 Monetary Theory 519 CHAPTER 20 Quantity Theory, Inflation, and the Demand for Money 520 20.1 Quantity Theory of Money. 520 Velocity of Money and Equation of Exchange . 520 From the Equation of Exchange to the Quantity Theory of Money . 522 Quantity Theory and the Price Level . 522 Quantity Theory and Inflation.523 APPLICATION Testing the Quantity Theory of Money. 524 20.2 Budget Deficits and Inflation.526 Government Budget Constraint. 526 FYI Modern Monetary Theory 528 Hyperinflation 528 APPLICATION The Zimbabwean Hyperinflation. . 529 20.3 Keynesian Theories of Money Demand.529 Transactions Motive. 530 Precautionary Motive. . 530 Speculative
Motive . 530 Putting the Three Motives Together. 530 20.4 Portfolio Theories of Money Demand. .531 Theory of Portfolio Choice and Keynesian Liquidity Preference. .531 Other Factors That Affect the Demand for Money. 532 Summary. 532 20.5 Empirical Evidence on the Demand for Money. 533 Interest Rates and Money Demand . 533 Stability of Money Demand . 534 Summary 534 · Key Terms 535 · Questions 535 · Applied Problems 536 · Data Analysis Problems 537 CHAPTER 21 The IS Curve 538 21.1 Planned Expenditure and Aggregate Demand. 538 21.2 The Components of Aggregate Demand. 539 Consumption Expenditure . 539 FYI Meaning of the Word Investment 540 Planned Investment Spending 540 Government Purchases and
Taxes. 542 Net Exports. 543 21.3 Goods Market Equilibrium. 544 Solving for Goods Market Equilibrium. 544 Deriving the IS Curve. 545
Contents in Detail 21.4 Understanding the IS Curve. 545 What the IS Curve Tells Us: Intuition . 545 What the ÍS Curve Tells Us: Numerical Example . 545 Why the Economy Heads Toward Equilibrium. 547 21.5 Factors that Shift the IS Curve. 547 Changes in Government Purchases. 547 APPLICATION The Vietnam War Buildup, 1964-1969 . 548 Changes in Taxes. 549 APPLICATION The Fiscal Stimulus Package of 2009 . 550 Changes in Autonomous Spending.551 Changes in Financial Frictions . 553 Summary of Factors That Shift the IS Curve . 553 Summary 553 · Key Terms 553 · Questions 554 · Applied Problems 555 · Data Analysis Problems 556 CHAPTER 22 The Monetary Policy and Aggregate Demand Curves 557
22.1 The Federal Reserve and Monetary Policy.557 22.2 The Monetary Policy Curve. 558 Why the Monetary Policy Curve Has an Upward Slope. 558 Shifts in the MP Curve. 559 Movements Along Versus Shifts in the MP Curve.560 Movements Along the MP Curve: The Rise in the Federal Funds Rate Target, 2004-2006 and 2015-2019 . APPLICATION 561 Shift in the MP Curve: Autonomous Monetary Easing During the Global Financial and Coronavirus Crises . 561 APPLICATION 22.3 The Aggregate Demand Curve. 562 Deriving the Aggregate Demand Curve Graphically. 563 FYI Deriving the Aggregate Demand Curve Algebraically 563 Factors That Shift the Aggregate Demand Curve. 565 Summary 568 · Key Terms 568 · Questions 568 · Applied Problems 570 · Data Analysis Problems 571 CHAPTER 23 Aggregate Demand and Supply Analysis 572 23.1 Business Cycles and Inflation .572 Business Cycles
. 572 Inflation. . 575 23.2 Aggregate Demand. 576 Components of Aggregate Demand . Following the Financial News Aggregate Output, Unemployment, and Inflation 576 576 Deriving the Aggregate Demand Curve. 577 Factors That Shift the Aggregate Demand Curve. 577 27
28 Contents in Detail FYI What Does Autonomous Mean? 578 23.3 Aggregate Supply. 581 Long-Run Aggregate Supply Curve. 581 Short-Run Aggregate Supply Curve . 582 Price Stickiness and the Short-Run Aggregate Supply Curve. 584 23.4 Shifts in the Aggregate Supply Curves. 584 Shifts in the Long-Run Aggregate Supply Curve . 584 Shifts in the Short-Run Aggregate Supply Curve. 585 23.5 Equilibrium in Aggregate Demand and Supply Analysis. 588 Short-Run Equilibrium. 589 Aggregate Demand and Supply Analysis Using an Aggregate Output Index. 589 How the Short-Run Equilibrium Moves to the Long-Run Equilibrium over Time . 590 Self-Correcting Mechanism.593 23.6 Changes in Equilibrium: Aggregate Demand Shocks. 593 APPLICATION The Volcker Disinflation, 1980-1986
. 595 23.7 Changes in Equilibrium: Aggregate Supply (Inflation) Shocks. 596 APPLICATION Negative Supply Shocks, 1973-1975 and 1978-1980 . 598 23.8 Conclusions from Aggregate Demand and Supply Analysis.599 APPLICATION AD/AS Analysis of the Great Recession of 2007-2009 . 600 APPLICATION An AD/AS Analysis of the Covid-19 Recession . 601 Summary 604 · Key Terms 604 · Questions 605 · Applied Problems 605 · Data Analysis Problems 606 APPENDIX TO CHAPTER 23 The Phillips Curve and the Short-Run Aggregate Supply Curve 23.A 607 1 The Phillips. Curve. 607 Phillips Curve Analysis in the 1960s. 607 The Friedman-Phelps Phillips Curve Analysis. 608 « FYI The Phillips Curve Trade-Off and Macroeconomic Policy in the 1960s 609 The Phillips Curve After the 1960s. 611 The Modern Phillips Curve. 611 The Modern Phillips Curve with Adaptive (Backward-Looking) Expectations. 612 23.A2 The Short-Run Aggregate Supply Curve. .613 CHAPTER 23 APPENDIX 1 The Effects of Macroeconomic Shocks on Asset Prices Go to MyLab Economics CHAPTER 23
APPENDIX 2 Aggregate Demand and Supply: A Numerical Example Go to MyLab Economics
Contents in Detail CHAPTER 24 Monetary Policy Theory 615 24.1 Response of Monetary Policy to Shocks.615 Response to an Aggregate Demand Shock. 616 Response to a Supply Shock . 617 The Bottom Line: The Relationship Between Stabilizing Inflation and Stabilizing Economic Activity. 620 24.2 How Actively Should Policymakers Try to Stabilize Economic Activity?. 621 Lags and Policy Implementation.622 FYI The Activist/Nonactivist Debate over the Obama Fiscal Stimulus Package 623 24.3 Inflation: Always and Everywhere a Monetary Phenomenon. 623 24.4 Causes of Inflationary Monetary Policy. 624 High Employment Targets and Inflation. 625 APPLICATION The Great Inflation . 628 24.5 Monetary Policy at the Effective Lower Bound. 630 Deriving the Aggregate Demand Curve with the Effective Lower Bound . 630 The Disappearance of the Self-Correcting Mechanism at the Effective Lower Bound. 632 APPLICATION Nonconventional Monetary
Policy and Quantitative Easing .633 Liquidity Provision. 634 Asset Purchases and Quantitative Easing .635 Management of Expectations.636 APPLICATION Abenomics and the Shift in Japanese Monetary Policy in 2013 . 636 Summary 639 · Key Terms 639 · Questions 639 · Applied Problems 640 · Data Analysis Problems 641 CHAPTER 25 The Role of Expectations in Monetary Policy 642 25.1 Lucas Critique of Policy Evaluation . 642 Econometric Policy Evaluation . 643 APPLICATION The Term Structure of Interest Rates. 643 25.2 Policy Conduct: Rules or Discretion?. .՝. 644 Discretion and the Time-Inconsistency Problem. 644 Types of Rules.645 The Case for Rules. ·. 645 FYI The Political Business Cycle and Richard Nixon 646
The Case for Discretion . 646 Constrained Discretion . 647 Global The Demise of Monetary Targeting in Switzerland 647 25.3 The Role of Credibility and a Nominal Anchor.648 Benefits of a Credible Nominal Anchor. 648 Credibility and Aggregate Demand Shocks . 649 Credibility and Aggregate Supply Shocks . 651 29
30 Contents in Detail A Tale of Three Oil Price Shocks 652 Credibility and Anti-Inflation Policy. .654 APPLICATION Global Ending the Bolivian Hyperinflation: A Successful Anti-Inflation Program 655 25.4 Approaches to Establishing Central Bank Credibility .656 Nominal GDP Targeting . Appoint “Conservative” Central Bankers . .656 .657 Inside the Fed The Appointment of Paul Volcker, Anti-Inflation Hawk 657 Summary 658 · Key Terms 658 · Questions 659 · Applied Problems 660 · Data Analysis Problems 660 CHAPTER 26 Transmission Mechanisms of Monetary Policy 661 26.1 Transmission Mechanisms of Monetary Policy. 662 Traditional Interest-Rate Channels . 662 Other Asset Price Channels . 663 Credit View. 666 FYI Consumers’ Balance Sheets and the Great Depression 669 Why Are Credit Channels Likely to Be Important?. . 670 APPLICATION The Great Recession. 670 26.2 Lessons for Monetary Policy. 671
APPLICATION Applying the Monetary Policy Lessons to Japan’s Two Lost Decades .672 Summary 673 · Key Terms 673 · Questions 674 · Applied Problems 675 · Data Analysis Problems 675 Chapter 26 APPENDIX Evaluating Empirical Evidence: The Debate Over the Importance of Money in Economic Fluctuations Go to MyLab Economics Glossary------------------------------- ------------------------------------------------------------------- 677 Index_ 689
Contents in Detail Additional Contents on MyLab Economics The following chapters and appendices are available on MyLab Economics CHAPTER! Nonbank Finance 1 Insurance. 1 Life Insurance. Property and Casualty Insurance. The Competitive Threatfrom the Banking Industry. Credit Insurance. FYI The AIG Blowup 1 2 4 4 5 FYI The Global Financial Crisis and the Monoline Insurers 6 APPLICATION Insurance Management. 6 Screening. Risk-Based Premiums. Restrictive Provisions. Prevention of Fraud. ·. Cancellation of
Insurance. Deductibles. Coinsurance. Limits on the Amount of Insurance. Summary. 7 7 7 8 8 8 8 8 9 9 Pension Funds. Private Pension Plans. . 10 Public Pension Plans. 10 FYI Should Social Security Be Privatized? 11 12 Finance Companies. Securities Market Operations. 13 Investment Banking. 13 Securities Brokers and Dealers. 14 Organized
Exchanges. 14 Mutual Funds. 1. 15 FYI Sovereign Wealth Funds: Are They a Danger? 16 Money Market Mutual Funds. 17 Hedge Funds. 17 Private Equity and Venture Capital Funds. ;. 18 Government Financial Intermediation.19 Federal Credit Agencies. ;. 19 FYI The Global Financial Crisis and the Bailout of Fannie Mae and Freddie Mac Summary 21 · Key Terms 22 · Questions 22 · Applied Problems 23 · Data Analysis Problems 23 20 31
32 Contents in Detail CHAPTER 2 Financial Derivatives 1 Hedging. 1 Interest-Rate Forward Contracts. 2 APPLICATION Hedging with Interest-Rate Forward Contracts. 2 Pros and Cons of Forward Contracts. 3 Financial Futures Contracts and Markets. 4 APPLICATION Hedging with Financial Futures.5 Organization of Trading in Financial Futures Markets. 7 The Globalization of Financial Futures Markets. 8 Explaining the Success of Futures Markets. 8 APPLICATION Hedging Foreign Exchange Risk. 10 Hedging Foreign Exchange Risk with Forward Contracts. 10 Hedging Foreign Exchange Risk with Futures Contracts. 10 Options. .*.11 Options Contracts. 12
Profits and Losses on Option and Futures Contracts. 12 APPLICATION Hedging with Future Options. 15 Factors Affecting Option Premiums. Summary. 16 17 Swaps. 18 Interest-Rate Swap Contracts. 18 APPLICATION Hedging with Interest-Rate Swaps. 19 Advantages of Interest-Rate Swaps. 19 Disadvantages of Interest-Rate Swaps. 20 Financial Intermediaries in Interest-Rate Swaps. 20 Credit Derivatives. . 20 Credit Options. 21 Credit Swaps. 21 Credit-Linked Notes. *22 APPLICATION Lessons from the Global Financial Crisis: When Are Financial Derivatives Likely to Be a Worldwide Time Bomb? 22 Summary 24 · Key Terms 24 · Questions 25 · Applied Problems 25 · Data Analysis Problems 26 CHAPTERS Conflicts of Interest in the Financial
Services Industry 1 What Are Conflicts of Interest, and Why Are They Important?. 2 Why Do We Care About Conflicts of Interest?. 2 Ethics and Conflicts of Interest. 2 Types of Conflicts of Interest. 3 Underwriting and Research in Investment Banking. 3 Auditing and Consulting in Accounting Firms. 4 Credit Assessment and Consulting in Credit-Rating Agencies. 4
Contents in Detail FYI The Collapse of Arthur Andersen 5 Universal Banking.5 FYI Why Do Issuers of Securities Pay to Have Their Securities Rated? FYI Banksters 6 7 Can the Market Limit Exploitations of Conflicts of Interest?. 7 What Has Been Done to Remedy Conflicts of Interest?. 9 Sarbanes-Oxley Act of 2002. 10 Global Legal Settlement of 2002. 10 Dodd-Frank Bill of 2010. 11 A Framework for Evaluating Policies to Remedy Conflicts of Interest. 11 Approaches to Remedying Conflicts of Interest. 12 APPLICATION Evaluating Sarbanes-Oxley, the Global Legal Settlement, and the Dodd-Frank Bill. 14 Summary 16 · Key Terms 17 · Questions 17 CHAPTER APPENDICES IN MYLAB ECONOMICS Chapter 4: Measuring Interest-Rate Risk: Duration Chapter 5: Loanable Funds Framework Chapter 9: Duration Gap Analysis Chapter 9: Measuring Bank Performance Chapter 10: Banking Crises Throughout the World Chapter 15 The Fed's Balance Sheet
and the Monetary Base Chapter 15: The M2 Money Multiplier Chapter 15: Explaining the Behavior of the Currency Ratio Chapter 15: The Great Depression Bank Panics, 1930-1933, and the Money Supply Chapter 17: Monetary Targeting Chapter 17: A Brief History of Federal Reserve Policymaking Chapter 18: The Interest Parity Condition Chapter 23: The Effects of Macroeconomic Shocks on Asset Prices Chapter 23: Aggregate Demand and Supply: A Numerical Example Chapter 26: Evaluating Empirical Evidence: The Debate Over the Importance of Money in Economic Fluctuations 33 |
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| edition | Thirteenth edition, global edition |
| format | Book |
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| genre | (DE-588)4123623-3 Lehrbuch gnd-content |
| genre_facet | Lehrbuch |
| id | DE-604.BV047377081 |
| illustrated | Illustrated |
| index_date | 2024-07-03T17:46:30Z |
| indexdate | 2024-07-10T09:10:26Z |
| institution | BVB |
| isbn | 9781292409481 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-032778755 |
| oclc_num | 1226616716 |
| open_access_boolean | |
| owner | DE-355 DE-BY-UBR DE-20 DE-N2 DE-706 DE-M347 DE-1102 DE-2070s DE-523 DE-188 DE-19 DE-BY-UBM |
| owner_facet | DE-355 DE-BY-UBR DE-20 DE-N2 DE-706 DE-M347 DE-1102 DE-2070s DE-523 DE-188 DE-19 DE-BY-UBM |
| physical | 718 Seiten Illustrationen, Diagramme |
| publishDate | 2022 |
| publishDateSearch | 2022 |
| publishDateSort | 2022 |
| publisher | Pearson |
| record_format | marc |
| spelling | Mishkin, Frederic S. 1951- Verfasser (DE-588)123920108 aut The economics of money, banking, and financial markets Frederic S. Mishkin (Columbia University) Thirteenth edition, global edition Harlow, England, London ; New York ; Boston ; San Francisco ; Toronto ; Sydney ; Dubai ; Singapore ; Hong Kong ; Tokyo ; Seoul ; Taipei ; New Delhi ; Cape Town ; Sao Paulo ; Mexico City ; Madrid ; Amsterdam ; Munich ; Paris ; Milan Pearson [2022] © 2022 718 Seiten Illustrationen, Diagramme txt rdacontent n rdamedia nc rdacarrier Authorized adaption from the U.S. edition, entitled "The Economics of Money, Banking, and Financial Markets", 13th Edition, ISBN 978-0-13-689435-3 by Frederic S. Mishkin, published by Pearson Education 2022. Geldwirtschaft (DE-588)4129419-1 gnd rswk-swf Geldpolitik (DE-588)4019902-2 gnd rswk-swf Geldtheorie (DE-588)4121333-6 gnd rswk-swf Kreditmarkt (DE-588)4073788-3 gnd rswk-swf Kreditwesen (DE-588)4032950-1 gnd rswk-swf (DE-588)4123623-3 Lehrbuch gnd-content Geldtheorie (DE-588)4121333-6 s Kreditwesen (DE-588)4032950-1 s DE-604 Geldwirtschaft (DE-588)4129419-1 s Kreditmarkt (DE-588)4073788-3 s Geldpolitik (DE-588)4019902-2 s Erscheint auch als Online-Ausgabe 978-1-292-40956-6 Digitalisierung UB Regensburg - ADAM Catalogue Enrichment application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=032778755&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Mishkin, Frederic S. 1951- The economics of money, banking, and financial markets Geldwirtschaft (DE-588)4129419-1 gnd Geldpolitik (DE-588)4019902-2 gnd Geldtheorie (DE-588)4121333-6 gnd Kreditmarkt (DE-588)4073788-3 gnd Kreditwesen (DE-588)4032950-1 gnd |
| subject_GND | (DE-588)4129419-1 (DE-588)4019902-2 (DE-588)4121333-6 (DE-588)4073788-3 (DE-588)4032950-1 (DE-588)4123623-3 |
| title | The economics of money, banking, and financial markets |
| title_auth | The economics of money, banking, and financial markets |
| title_exact_search | The economics of money, banking, and financial markets |
| title_exact_search_txtP | The economics of money, banking, and financial markets |
| title_full | The economics of money, banking, and financial markets Frederic S. Mishkin (Columbia University) |
| title_fullStr | The economics of money, banking, and financial markets Frederic S. Mishkin (Columbia University) |
| title_full_unstemmed | The economics of money, banking, and financial markets Frederic S. Mishkin (Columbia University) |
| title_short | The economics of money, banking, and financial markets |
| title_sort | the economics of money banking and financial markets |
| topic | Geldwirtschaft (DE-588)4129419-1 gnd Geldpolitik (DE-588)4019902-2 gnd Geldtheorie (DE-588)4121333-6 gnd Kreditmarkt (DE-588)4073788-3 gnd Kreditwesen (DE-588)4032950-1 gnd |
| topic_facet | Geldwirtschaft Geldpolitik Geldtheorie Kreditmarkt Kreditwesen Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=032778755&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT mishkinfrederics theeconomicsofmoneybankingandfinancialmarkets |