Money, Banking and Financial Markets 1e

Lloyd Thomas, Kansas State University 600pp Published by Cengage Learning, ©2006 £60.99

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MONEY, BANKING AND FINANCIAL MARKETS is an upper-level undergraduate text that was written with the idea that the money and banking course should be the most interesting and timely course in an economics curriculum. It provides in-depth coverage of the fundamental topics, principles and issues found in a money and banking course: the nature and functions of money, financial institutions and markets, and banking structure and regulation. The nature and structure of the Federal Reserve System is thoroughly covered in this new text, along with instruments of central bank policy, determinants of the level and term structure of interest rates, stock prices, foreign exchange rates, and the nation's money supply.

Features

• Stock Market Coverage: An entire chapter has been devoted to the stock market, a topic students are very interested in. This chapter provides a framework for understanding the factors determining the prices of stocks, looks at stock market indexes and discusses the various measures of stock valuation.
• Rules vs. Discretion: The text emphasizes the difference between rules and discretion in monetary economic topics. This gives students a view of how decisions are made.
• Solid Coverage of Latest Monetary Developments: This book includes more intensive coverage of monetary policy than other texts. It includes: comprehensive treatment of Taylor Rule and a full chapter on Inflation Targeting, thorough coverage of transmission mechanism and complete analysis of rules-versus-discretion debate and separate chapters on the institutional makeup of the Federal Reserve and the European Central Bank.
• Pedagogical Features: Several features in this book enhance student learning, including: "International Perspective" boxes provide a global perspective on key topics; "From the Financial News" introduces students to financial tables from daily newspapers; and "Your Turn" poses questions to students to test their understanding of formulas and concepts as they are introduced. Other features include key term definitions in the margins and end of chapter study questions.

Part I: INTRODUCTION.
1. Money, Banking, and Financial Markets: An Overview.
2. Money: Its Nature, Functions, and Evolution.
Part II: FINANCIAL MARKETS, INSTITUTIONS, AND INTEREST RATES.
3. Financial Markets and Instruments.
4. Financial Intermediation.
5. Interest Rate Determination.
6. The Term Structure and Risk Structure of Interest Rates.
7. The Stock Market.
8. The Foreign Exchange Market.
Part III: BANKING: STRUCTURE, REGULATION, AND DEPOSIT INSURANCE.
9. Commercial Banking.
10. The Banking Industry: Its Evolution, Structure and Regulation.
11. The Economics of Banking Regulation and Deposit Insurance.
Part IV: CENTRAL BANKING, THE FEDERAL RESERVE, AND THE MONEY SUPPLY PROCESS.
12. The Federal Reserve System: Its Structure and Functions.
13. The European Central Bank.
14. The Deposit Expansion Process: The Simple Analytics.
15. Money Supply Determination: The Monetary Base.
16. Money Supply Determination: The Money Supply Multiplier.
17. The Role of the Federal Reserve in the Great Depression of 1929-1933.
Part V: INSTRUMENTS, TARGETS, AND STRATEGIES OF CENTRAL BANKING POLICY.
18. The Tools of Federal Reserve Policy.
19. Conducting Monetary Policy: Ultimate Goals and Intermediate Targets.
Part VI: THE LINKAGE BETWEEN INTERMEDIATE TARGET VARIABLES AND ECONOMIC ACTIVITY.
20. The Aggregate Demand-Aggregate Supply Model.
21. The AD/AS Model and Post-1929 U.S. Macroeconomic History.
22. Money Demand and Velocity.
23. The Monetary Transmission Mechanism: How the Federal Reserve Policy Influences Economic Activity.
24. Differing Views on the Appropriate Conduct of Monetary Policy.
25. Inflation Targeting.

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Lloyd Thomas
Lloyd Thomas, currently the chair of the Department of Economics at Kansas State University, received his BA from the University of Missouri and his Ph. D from North Western University. He has served as a visiting professor at the University of California-Berkeley, University of Delaware, and Indiana University-Bloomington. Dr. Thomas¿ research interests include empirical analysis of interest rates determination and various issues in macroeconomic policy. Recently he has been examining various aspects of inflation expectations and his work has appeared in Economic Letters, Journal of Economic Perspectives, Business Economics, and Quarterly Review of Economics and Finance.