Financial Capital. Data and Models

1 Introduction 9 1.1 Markets, money, financial capital 9 1.2 Notations for models 11 2 Beginning with banks 15 2.1 Two money circuits 15 2.2 Banks' deposit money 18 2.3 Usages of reserves 28 2.4 Zero-sum games and debts 32 3 Bonds 39 3.1 Some data 39 3.2 Orientation to returns 40 3.3 Government bond spreads 46 3.4 Financing of government debt 49 3.5 Appendix: Modern Money Theory 59 4 Tradable shares 63 4.1 Some data 63 4.2 Speculative pricing 65 4.3 Dividends 71 4.4 Real and virtual gains 76 5 Investment funds 83 5.1 Some data 83 5.2 Speculation with fund shares 85 5.3 Exchange-traded funds . 89 6 Derivatives 95 6.1 Forwards and futures 95 6.2 Options 101 6.3 Credit default swaps 108 7 Financialization 115 7.1 Expansion of financial wealth 115 7.2 Inequality of financial wealth 139 References 150 Index 154