Principles of Money, Banking and Financial Markets

Part 1 The basics: introducing money; money, the economy and inflation; financial instruments and markets; financial institutions - purposes and profile; calculating interest rates; the level of interest rates. Part 2 Intermediaries and banks: the regulation and structure of depository institutions; commercial bank asset and liability management; nondeposit financial institutions; international banking; financial innovation; the payments system. Part 3 The art of central banking: who's in charge here?; bank reserves and the money supply; the instruments of central banking; understanding movements in bank reserves; hitting the monetary targets; budget deficits and the money supply. Part 4 Monetary theory: the foundations of monetarism; the Keynesian framework; the ISLM world; monetarists and Keynesians in the ISLM world; monetarists and Keynesians - an aggregate supply and demand perspective; rational expectations - theory and policy implications; empirical evidence on the effectiveness of monetary policy. Part 5 Financial markets and interest rates: risk and portfolio choice; flow of funds accounting - a framework for financial analysis; the structure of interest rates; the structure and performance of securities markets; the government securities market; other fixed-income markets - corporate bonds, municipals, and mortgages; equities, the stock market and interest rates; financial futures and options. Part 6 International finance: foreign exchange rates; fixed versus floating exchange rates; balance of payments accounting; the gold standard; epilogue - careers in banking and financial markets.