ABSTRACT
This book focuses on the core issues in money and banking. By using simple applications for anyone that understands basic economics, the lessons in the book provide any student or reader with a background in how financial markets work, how banks as businesses function, how central banks make decisions, and how monetary policy affects the global economy.
Money and Banking is split into sections based on subject matter, specifically definitions and introductions, financial markets, microeconomic issues, macroeconomy policy, and international finance. It also covers:
- derivative and currency markets
- the microeconomics of banking
- trade and currency movements
- asymmetric information and derivative markets
- the future of financial markets and their participants
By providing a mix of microeconomic and macroeconomic applications, focusing on both international examples and open economy macroeconomics, this book reduces the minutiae seen in competing books. Each chapter provides summaries of what should be learned along the way and why the chapter’s topic is important, regardless of current events. For undergraduate business, economics or social science students otherwise, this book is a concise source of information on money, banking and financial markets.
1. Understanding Money 2. Interest Rates and Financial Markets 3. Risk and Risk Aversion 4. Equity Markets, Stock Markets and Real Estate 5. Derivative Asset and Insurance Markets 6. Financial Intermediaries 7. The Microeconomics of Banking 8. Connections between Commercial and Central Banking 9. The Domestic Market for Money 10. Money, Employment, Inflation and Expectations 11. Money and the Macroeconomy 12. Monetary Policy in the Open Macroeconomy 13. The World Economy and Monetary Policy Choices 14. The Future of Banking, Private and Central
