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• Overview |
• Table of Contents
• |
• Features

Table of Contents

Each chapter concludes with a chapter summary, key terms, and references.
1. Introduction to Money and Banking
What's in This Text?
Ten (Surprising) Facts Concerning Money and Banking
I. Money and the Financial System
2. The Financial System and the Economy
Financial Securities
Matching Borrowers with Lenders
Financial Markets
The Financial System
Application to Everyday Life: What Do Investors Care About?
3. Money and Payments
How We Use Money
The Payments System
Counting Money
Application to Everyday Life:What Do You Do with Your Change?
4. Present Value
The Present Value of One Future Payment
The General Form of the Present-Value Formula
Using Present Value to Make Decisions
Using the Present-Value Formula to Calculate Payments
Looking Forward or Looking Backward at Returns
Application to Everyday Life: How to Negotiate a Car Lease
5. The Structure of Interest Rates
What Explains Differences in Interest Rates?
The Term Structure of Interest Rates
The Term Premium
The Yield Curve and the Business Cycle
Policy Perspective: Can the Term Spread Help Predict Recessions?
6. Real Interest Rates
What Are Real Interest Rates?
Real Present Value
What Affects Real Interest Rates?
Application to Everyday Life: How Inflation and Taxes Reduce Investors' Returns
7. Stocks and Other Assets
The Stock Market
How Can an Investor Profit in the Stock Market?
Application to Everyday Life: Comparing Stocks with Bonds and Other Financial Investments
II. Fundamentals of Banking
8. How Banks Work
The Role of Banks
How Do Banks Earn Profits?
Policy Perspective:Should the Fed Let Reserve Requirements Be Swept Away?
9. Government's Role in Banking
Regulation of Banks
Supervision of Banks
Policy Perspective: Should Mergers of Big Banks Be Allowed?
III. Macroeconomics
10. Economic Growth and Business Cycles
Measuring Economic Growth
Business Cycles
Application to Everyday Life: How Does Economic Growth Affect Your Future Income?
11. Modeling Money
The ATM Model of the Demand for Cash
The Liquidity-Preference Model
The Dynamic Model of Money
Policy Perspective: Using Models of Money Demand in Practice
12. The Aggregate-Demand/Aggregate-Supply Model
A Model of Aggregate Demand and Aggregate Supply
Analyzing Policy Using the AD-AS Model
Large, Structural Macroeconomic Models
Policy Perspective: Did Large Macro Models Mislead Policymakers in the 1970s?
13. Modern Macroeconomic Models
Dynamic Models
Dynamic, Stochastic, General-Equilibrium Models
Statistical Models of the Economy
Policy Perspective: Do Modern Macroeconomic Models Have Any Value for Policy?
14. Economic Interdependence
The International Business Cycle
Exchange Rates
Policy Perspective: How Independent Should a Country Be?
IV. Monetary Policy
15. The Federal Reserve System
Federal Reserve Banks
The Board of Governors
The Federal Open Market Committee
Policy Perspective: Should the Federal Reserve Be So Independent?
16. Monetary Control
Money Creation and Destruction by the Fed and by Banks
Realistic Money Multipliers
The Fed's Tools for Changing the Money Supply
The Market for Bank Reserves
Policy Perspective: Should the Fed Pay Interest on Reserves?
17. Monetary Policy: Goals and Tradeoffs
Stabilization Policy
Goals of Monetary Policy
The Fed's Objective Function
Policy Perspective: The Phillips Curve
18. Rules for Monetary Policy
Rules Versus Discretion
Money-Growth Rules
The Taylor Rule
Inflation Targeting
Policy Issue: Why Don't Policymakers Follow Rules?