Published by Pearson (March 20, 2013) © 2013
Frederic Mishkin | Kent Matthews | Massimo GiuliodoriPreface
Guided tour
Authors’ acknowledgements
Publisher’s acknowledgements
Introduction
Part 1 Introduction
1 Why study money, banking and financial markets?
Why study financial markets?
Why study financial institutions and banking?
Why study money and monetary policy?
Why study international finance?
How will we study money, banking and financial markets?
Web exercises
Concluding remarks
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
Appendix to Chapter 1 Defining aggregate output, income, the price level and the inflation rate
2 An overview of the financial system
Function of financial markets
Structure of financial markets
Financial market instruments
Internationalization of financial markets
Function of financial intermediaries: indirect finance
Types of financial intermediaries
Regulation of the financial system
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
3 What is money? A comparative approach to measuring money
Meaning of money
Functions of money
Evolution of the payments system
Measuring money
Which is the most accurate monetary aggregate?
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
Part 2 Financial markets
4 Understanding interest rates
Measuring interest rates
The distinction between interest rates and returns
The distinction between real and nominal interest rates
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
5 The behaviour of interest rates
Determinants of asset demand
Supply and demand in the bond market
Changes in equilibrium interest rates
Supply and demand in the market for money: the liquidity preference framework
Changes in equilibrium interest rates in the liquidity preference framework
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
6 The risk and term structure of interest rates
Risk structure of interest rates
Term structure of interest rates
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
7 The stock market, the theory of rational expectations and the efficient market hypothesis
Computing the price of common stock
How the market sets stock prices
The theory of rational expectations
The efficient market hypothesis: rational expectations in financial markets
Behavioural finance
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
Part 3 Financial institutions
8 An economic analysis of financial structure
Basic facts about financial structure throughout the world
Transaction costs
Asymmetric information: adverse selection and moral hazard
The lemons problem: how adverse selection influences financial structure
How moral hazard affects the choice between debt and equity contracts
How moral hazard influences financial structure in debt markets
Conflicts of interest
Summary
Key terms
Questions and problems
Web exercises
Notes
Web references
9 Financial crises and the subprime meltdown
Factors causing financial crises
Dynamics of past financial crises in developed countries
The subprime finan