자료유형 | 단행본 |
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서명/저자사항 | Financial System and The Economy : Principles of Money and Banking / Maureen Burton, Ray Lombra. |
개인저자 | Burton, Maureen Lombra, Ray. |
판사항 | 2nd ed. |
발행사항 | Cincinnati : South-Western Pub, 2000 |
형태사항 | xx, 627 p. : col. ill. ; 26 cm |
ISBN | 0324004397 |
서지주기 | Includes index. |
비통제주제어 | Finance/, Money/, Banks and banking |
분류기호 | 327.1 |
언어 | 영어 |
캠퍼스간대출 소재불명도서 자료배달서비스 인쇄
No. | 등록번호 | 청구기호 | 소장처 | 도서상태 | 반납예정일 | 예약 | 서비스 | 매체정보 |
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1 | M0197557 | 327.1 B974f2 | 삼성캠퍼스/단행본서고(5층)/ | 대출가능 | false|true|true|false |true|true |
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CONTENTS
PART ONE Introduction
Chapter 1 Introduction and Overview ... 2
What This Book Is About ... 3
Economic and Financial Analysis of an Ever Changing System ... 3
Finance in ...
CONTENTS
PART ONE Introduction
Chapter 1 Introduction and Overview ... 2
What This Book Is About ... 3
Economic and Financial Analysis of an Ever Changing System ... 3
Finance in Our Daily Lives ... 5
Introducing the Financial System ... 6
More on Financial intermediaries ... 8
Depository Institutions and Other Types of Intermediaries ... 10
The Federal Reserve System ... 11
The Role of Policy : Changing Views ... 13
Summary of Major Points ... 16
Chapter 2 Principles of Money ... 20
Conceptualization : A Key Building Block ... 21
Defining Money ... 21
A Closer Look : Money, Exchange, and Economic Development ... 23
The Monetary Aggregates and Domestic Nonfinancial Debt ... 23
The Monetary Aggregates ... 25
A Closer Look : Money and Other Financial Claims ... 27
Domestic Nonfinancial Debt ... 28
The Economy and the Aggregates ... 28
Looking Forward : United States to Get New Currency ... 30
The Evolution of the Payments System ... 30
A Closer Look : Forget Your Checkbook ... 33
Summary of Major Points ... 34
Chapter 3 The Role of Money and Credit ... 37
Money and Credit Matter ... 38
The Demand for and Supply of Money ... 38
The Demand for Money ... 39
Cracking the Code : Graphical Analysis ... 40
The Supply of Money ... 41
Money and Interest Rates ... 42
How Credit Matters : A First Approximation ... 44
Money, Credit, and the Economy : A Peek at the Data ... 45
A Closer Look : Recent Innovations in Credit Extension ... 46
Looking Back : A Brief History of U. S. Currency ... 48
Cracking the Code : Measuring the Inflation Rate ... 50
Are Money and Credit All That Matter? ... 50
Money and Credit Flows : First Fiddle or Second Fiddle ... 51
Summary of Major Points ... 52
Chapter 4 Analysis of the Financial System and the Economy ... 56
The Trees versus the Forest ... 57
Spending, Saving, Borrowing, and Lending ... 57
A Typical Household ... 58
A Typical Firm ... 59
From J. P. and APEI to the Economy as a Whole : Aggregation ... 59
The Circular Flow of Income, Expenditures, and Funds ... 61
The Product Market ... 63
The Factor Market ... 65
The Financial System ... 66
Maximization : Plans, Revisions, and Actions ... 68
Summary of Major Points ... 71
Appendix 4-A : Interest Rates : Which Theory Is Correct? Reconciling Stocks and Flows ... 74
Chapter 5 The Overseer : The Federal Reserve System ... 76
Unraveling the Fed's Mystique ... 77
Organizational Structure of the System ... 77
Looking Back : Early Attempts at Establishing a Central Bank ... 78
Board of Governors ... 78
A Closer Look : The Board of Governors ... 79
Federal Reserve Banks ... 80
Federal Open Market Committee(FOMC) ... 80
The Fed's Functions ... 82
Formulation and Implementation of Monetary Policy ... 82
Supervision and Regulation of the Financial System ... 83
Facilitation of the Payments Mechanism ... 85
Operation as Fiscal Agent for the Government ... 85
The Fed's Major Policy Tools ... 86
Open Market Operations ... 86
The Discount Rate and Discount Rate Policy ... 87
Reserve Requirements ... 88
Who Does What within the Fed ... 89
The Federal Reserve System : An Independent Watchdog, Convenient Scapegoat, or Cunning Political Animal? ... 90
Looking Out : Central Bank Independence and Macroeconomic Performance ... 92
Summary of Major Points ... 94
Chapter 6 Financial Markets, instruments, and Participants ... 97
Game Talk ... 98
Introducing Financial Markets ... 98
Major Financial Market Instruments ... 101
Money Market Instruments ... 101
Cracking the Code : Treasury Bills ... 103
Capital Market Instruments ... 106
Looking Forward : The World's Newest Currency ... 107
A Closer Look : Following the Financial News ... 110
The Role of Market Makers ... 110
Why Market Makers Make Markets ... 112
Market Making and Liquidity ... 112
Substitutability, Market Making, and Market Integration ... 113
Summary of Major Points ... 115
PART TWO Financial Prices
Chapter 7 Interest Rates and Bond Prices ... 120
The Present versus the Future ... 121
The Time Value of Money ... 121
Compounding and Discounting ... 122
Compounding : Future Values ... 122
Discounting : Present Values ... 124
Interest Rates, Bond Prices, and Present Values ... 126
Fluctuations in Interest Rates and Managing a Bond Portfolio ... 128
The Determinants of Interest Rates ... 129
Changes in the Demand for Loanable Funds ... 130
Changes in the Supply of Funds ... 131
Inflation and Interest Rates ... 133
The Cyclical Movement of Interest Rates ... 137
Summary of Major Points ... 137
Appendix 7-A : The Inverse Relationship between Bond Prices and Interest Rates : The Case of Consols ... 140
Chapter 8 The Structure of Interest Rates ... 142
From One Interest Rate to Many ... 143
The Role of Term to Maturity in Interest Rate Differentials ... 143
The Yield Curve ... 144
The Expectations Theory ... 145
Determining Interest Rate Expectations ... 150
Tying the Determinants of Expectations to the Changing Shape and Level of Yield Curves ... 151
Some Necessary Modifications to the Expectations Theory ... 153
The Role of Credit Risk and Taxes in Interest Rate Differentials ... 156
Credit Risk ... 156
Taxability ... 157
Summary of Major Points ... 160
Chapter 9 How Exchange Rates Are Determined ... 164
The More Things Change, the More Things Stay the Same ... 165
Defining Exchange Rates ... 165
Cracking the Code : How Movements in the Exchange Rate Affect the Dollar Price of Foreign Goods ... 167
Determining Exchange Rates ... 167
The Demand for Dollars in the Foreign Exchange Market ... 168
Cracking the Code : Finding the Yen/Mark Exchange Rate ... 169
Cracking the Code : The Cost of an IBM Computer in Japan ... 170
The Supply of Dollars in the Foreign Exchange Market ... 171
Changes in Supply and Demand and How They Affect the Exchange Rate ... 172
Defining the Balance of Payments and Its Influence on the Exchange Rate, the Financial System, and the U. S. Economy ... 176
The Current Account ... 177
Looking Out : The Path to a Single European Currency ... 178
The Capital Account ... 179
The Balance of Payments and the Exchange Rate ... 179
Looking Back : The Gold Standard ... 180
A Closer Look : Appreciation, Depreciation, and Appreciation : Causes and Consequences of Dollar Exchange Rate Movements Since 1980 ... 181
Summary of Major Points ... 183
Appendix 9-A : Expansionary Monetary Policy and Restrictive Fiscal Policy : A Scenario ... 187
PART THREE Financial Markets
Chapter 10 The Stock, Bond, and Mortgage Markets : Volatile Asset Prices ... 190
The Implications of Volatile Stock, Bond, and Mortgage Prices ... 191
Looking Back : Famous Financial Quotations from Just Before the Stock Market Crash of 1929 ... 192
Looking Out : The Japanese Bubble Economy of the 1980s ... 193
The Stock Market ... 194
The Organized Exchanges ... 195
A Closer Look : Stock Market Indexes : Is the Most Famous the Best? ... 196
Cracking the Code : The Stock Market ... 197
The Over-the-Counter Market ... 198
Looking Back : Would You Buy a "Seat" on the New York Stock Exchange for <FONT face ... serif
The Mutual Fund Market ... 199
Looking Forward : Will the Trading Specialist Go the Way of the Dinosaur? ... 200
A Closer Look : New Circuit Breaker Rules Implemented on the New York Stock Exchange ... 201
The Bond Market ... 203
The Corporate Bond Market ... 203
A Closer Look : A Sample of the Types of Mutual Funds ... 204
The Treasury Bond Market ... 205
Cracking the Code : Corporate Bonds ... 206
Municipal and Government Agency Securities ... 207
Cracking the Code : Treasury Bonds ... 208
The Mortgage Market ... 209
Secondary Markets in Mortgages ... 210
Summary of Major Points ... 211
Appendix 10-A : How Expected Rates of Return Affect the Prices of Stocks, Bonds, and Mortgages ... 215
Chapter 11 Futures, Options, and Swaps : Managing Risk ... 217
A Single Solution ... 218
Forward Transactions and Financial Futures ... 218
A Closer Look : Futures, Exchanges That Trade Financial Futures, Minimum Amounts, and Open Interest ... 221
A Closer Look : A Credit Union Enters the Futures Market ... 223
Cracking the Code : Futures Prices ... 224
A Closer Look : LHT Inc. Enters the Futures Market ... 225
Determining the Futures Price ... 226
Options ... 227
A Closer Look : Stock Index Futures and the '87 Crash ... 228
Put Options ... 229
A Closer Look : Major Options, Exchanges, and Open Interest ... 230
Call Options ... 231
The Option Premium ... 231
Swaps ... 232
Cracking the Code : Cracking the Code on Options ... 233
Summary of Major Points ... 235
Appendix 11-A : The Foreign Exchange Futures Market ... 238
Appendix 11-B : Determining the Option Premium ... 240
Chapter 12 The International Financial System ... 241
The Changing International Financial System ... 242
A Closer Look : International Money and Capital Market Assets ... 243
The International Financial System from 1944 to 1973 ... 244
The Managed Float Exchange Rate System since 1973 ... 246
A Closer Look : The Foreign Exchange Market ... 248
Futures, Options, Forward Contracts, and Swaps under the Managed Float ... 249
Cracking the Code : The Foreign Exchange Market ... 252
The Role of the Dollar under the Managed Float ... 252
Major International Financial Institutions ... 254
The International Monetary Fund(IMF) ... 254
The World Bank ... 256
A Closer Look : The Role of the IMF in the Asian Crisis ... 257
The Bank for International Settlements(BIS) ... 258
Looking Forward : A Framework for International Financial Stability ... 259
Summary of Major Points ... 260
PART FOUR Financial Institutions
Chapter 13 Financial Intermediaries ... 266
Are All Financial Intermediaries More or Less Alike? ... 267
Common Characteristics ... 267
A Closer Look : FIs as Firms ... 269
Types of Risks Faced by All FIs ... 271
Credit or Default Risk ... 271
Interest Rate Risk ... 272
Liquidity Risk ... 272
Exchange Rate Risk ... 273
A Guide to FIs and Their Balance Sheets ... 273
Deposit-Type FIs ... 274
Contractual-Type FIs ... 279
Investment-Type FIs ... 282
Finance Company-Type FIs ... 283
Pulling Things Together ... 284
Summary of Major Points ... 287
Chapter 14 Commercial Banking Structure, Regulation, and Performance ... 291
The Biggest Intermediary in Town ... 292
The Banking Regulatory Structure ... 293
Looking Back : The Origins of the Dual Banking System ... 294
The Structure of the Commercial Banking System ... 296
The Definition of a Bank Holding Company ... 300
Ongoing Changes in the Structure of the Banking Industry ... 303
A Closer Look : Megamergers of the Late 1990s ... 305
The Evolution of International Banking ... 306
Bank Management : Managing Risk and Profits ... 307
Managing Risk ... 309
Bank Performance ... 309
Summary of Major Points ... 312
Appendix 14-A : A More In-Depth Look at the Major Assets of Commercial Banks ... 315
Chapter 15 Financial Innovation ... 318
The Road from There to Here ... 319
Major Causes of Financial Innovation ... 319
The Beginning Regulatory Structure ... 320
The Analytic Foundations of Financial Innovation ... 321
Early Financial Innovations for Banks ... 325
A Closer Look : The Anatomy of Eurodollar Borrowing ... 327
A Closer Look : The Development of the Eurodollar Market ... 328
Deregulation ... 329
A Closer Look : The Changing Composition of Liabilities of Large Commercial Banks ... 330
Financial Innovation in Recent Years : Derivatives and Securitization ... 331
A Closer Look : Securitization of Small Business Loans ... 333
Looking Forward : The Electronic Purse : An Innovation in the Making ... 334
Other Characteristics of the Financial System ... 334
Looking Forward : The Financial System of the Future ... 335
Summary of Major Points ... 337
Chapter 16 Strains on the Financial System ... 340
Memory Is the Thing You Forget With ... 341
Financial Intermediation, Risk, and Financial Crises ... 342
A Closer Look : The Classic Debt Deflation ... 344
The Problem of Moral Hazard in Financial Intermediation ... 346
A Closer Look : The Bailout of Long-Term Capital Management ... 348
The Savings and Loan Debacle ... 350
Looking Out : The Japanese Banking Crisis ... 352
Other Areas of Concern ... 354
Off-Balance-Sheet Activities ... 354
Derivatives ... 354
A Closer Look : The Lincoln Savings Scandal ... 355
A Closer Look : The Collapse of a California County and a British Bank ... 356
The Eurodollar and Eurobond Markets ... 358
Summary of Major Points ... 359
Chapter 17 Regulation in the Financial Services Industry ... 362
The Role of Regulation ... 363
The How and Why of Financial Services Regulation ... 364
Recent Major Legislation ... 365
Basel Accord ... 365
A Closer Look : Regulators in the Financial Services Industry ... 366
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ... 366
Looking Out : Basel Committee Announces 25 Core Principles for Effective Bank Supervision ... 368
Federal Deposit Insurance Corporation Improvement Act of 1991 ... 369
A Closer Look : Bank Capital Standards under the Basel Accord ... 370
Community Reinvestment Act ... 372
Interstate Banking and Branching Efficiency Act of 1994 ... 373
Looking Back : Remedies for a Credit Crunch ... 374
Other Possible Areas of Reforms ... 375
Looking Back : A Time Line of Banking Legislation ... 376
Summary of Major Points ... 377
PART FIVE Monetary Theory
Chapter 18 The Fed, Depository Institutions, and the Money Supply Process ... 382
Where Money Comes From ... 383
The Fed and Bank Reserves ... 383
Open Market Operations ... 383
Discount Loans ... 385
Other Factors That Change Reserves ... 386
Loan and Deposit Expansion by the Banking System ... 387
The Simple Multiplier Model of the Money Supply Process ... 391
Policy Implications ... 395
Some Complicating Realities in the Multiplier Model ... 396
Modifying the Multiplier Model ... 396
Looking Back : The Money Multiplier During the Great Depression ... 398
The Fed's Control over the Money Supply ... 400
Looking Back : The Evolution of the Money Multiplier ... 401
Summary of Major Points ... 402
Appendix 18-A : Other Factors That Affect the Monetary Base ... 405
Appendix 18-B : The M2 Multiplier ... 410
Chapter 19 The Demand for Real Money Balances and Market Equilibrium ... 412
Where is All the Money? ... 413
The Demand for Real Money Balances ... 413
Households' Demand for Real Money Balances ... 415
Firms' Demand for Real Money Balances ... 417
The Interest Rate, Real Income, and Real Money Balances ... 418
A Closer Look : Keynes's Speculative Demand for Money ... 421
Additional Factors Affecting the Demand for Real Money Balances ... 424
Looking Forward : Will Checks Go the Way of the Dinosaur? ... 425
Equilibrium in the Market for Real Money Balances ... 425
A Final Note ... 430
A Closer Look : Monetarism ... 431
Summary of Major Points ... 432
Appendix 19-A : The Transactions Demand for Money by Households ... 435
Chapter 20 Financial Aspects of Household and Firm Behavior ... 440
To Spend or Not to Spend ... 441
Household Behavior from a Financial Perspective ... 442
Asset Accumulation : Spending and Saving ... 444
A Closer Look : Choosing Among Financial Assets : The Role of Risk Aversion ... 445
Liability Accumulation : Borrowing ... 446
How Economic and Financial Conditions Influence Household Accumulation of Assets and Liabilities ... 447
The Sources and Uses of Funds for Households ... 448
Household Demand Equations for Real and Financial Assets ... 449
Financial Aspects of the Behavior of Nonfinancial Firms ... 453
The Accumulation of Real Assets by Firms : Capital and Inventories ... 454
The Accumulation of Liabilities by Firms ... 457
The Sources and Uses of Funds for the Business Sector ... 460
Summary of Major Points ... 462
Chapter 21 Financial Effects of the Government and Foreign Sectors ... 465
Optimism and Dismay ... 466
Financial Aspects of Government Behavior ... 466
Financial Effects of Government Borrowing : A Graphical Perspective ... 473
Expectations and the Timing of Interest Rate Changes ... 476
The Sources and Uses of Funds in the Government Sector ... 477
A Closer Look : The Long-Term Effects of Government Deficit Spending ... 479
The Foreign Sector and Its Effect on the Financial System ... 480
The Effects of International Events on the Interest Rate ... 481
The Sources and Uses of Funds for the Foreign Sector ... 485
Summary of Major Points ... 486
Chapter 22 Aggregate Demand and Aggregate Supply ... 490
"GDP up 8 Percent" : Is This Indicative of an Economy in Good Health? ... 491
Aggregate Demand ... 491
The Aggregate Demand Curve ... 492
What Causes Aggregate Demand to Change? ... 495
Aggregate Supply ... 497
From the Individual Firm to the Aggregate ... 498
Short-Run Aggregate Supply ... 498
Long-Run Aggregate Supply ... 500
The Relationship between the Short Run and the Long Run : Shifts in Short-Run Aggregate Supply ... 504
Equilibrium and Financial Flows among Sectors ... 507
A Closer Look : The Mechanics of Macroeconomic Equilibrium ... 509
Summary of Major Points ... 510
PART SIX Monetary Policy
Chapter 23 The Challenges of Monetary Policy ... 516
Can the Business Cycle Be Mitigated? ... 517
The Goals of Monetary Policy ... 518
Economic Growth ... 518
Stabilization of Unemployment, Inflation, and the External Balance ... 520
Cracking the Code : Measuring Unemployment ... 522
The Source of Numerical Objectives for Unemployment and Inflation ... 525
Changes in Aggregate Demand and Policy ... 526
Demand-Induced Recession ... 529
Looking Back : How History Has Affected U. S. and German Policy Goals ... 531
A Closer Look : Formation of Price Expectations ... 532
Changes in Aggregate Supply and Policy ... 533
A Closer Look : The Phillips Curve ... 534
Looking Forward : Will the Fed Have Less Power to Affect the Economy in the Future? ... 537
Summary of Major Points ... 537
Chapter 24 The Process of Monetary Policy Formulation ... 542
Setting the Stage ... 543
The Policy Process ... 543
Current Conditions versus Forecasts ... 544
Assessing the Economic Situation ... 545
From Assessment to Action ... 546
From Action to Effect ... 546
Pitfalls in Policy Making ... 547
Uncertainty and Lags ... 547
Globalization : A Financially and Economically Integrated World Economy ... 549
Intermediate Targets ... 550
A Closer Look : The Use of Intermediate Targets since 1970 ... 552
Federal Open Market Committee Decisions ... 556
A Closer Look : Targeting the Monetary Aggregates ... 557
A Closer Look : Supplier Delivery Time : An Indicator of Inflation? ... 558
Summary of Major Points ... 559
Chapter 25 Fed Watching and Policy Implementation ... 563
A Morning at the New York Fed ... 564
Interpreting the FOMC Directive ... 564
The Reserves Market and Open Market Operations ... 567
Trading Desk Market Techniques ... 569
A Closer Look : How the Demand and Supply of Reserves Are Calculated ... 570
Outright Transactions in the Market ... 572
Temporary Transactions ... 574
Signposts for Fed Watching and Sources of Information ... 575
Basic Rules of Fed Watching ... 575
The Lesson ... 578
Summary of Major Points ... 578
Chapter 26 Monetary Policy : Exchange Rates and Global Coordination ... 582
Monetary Policy and the Globalization of Trade and Finance ... 583
Monetary Policy under Fixed Exchange Rates from 1944 to 1973 ... 583
A Closer Look : The Growth of Trade and Removal of Barriers to Capital Flows ... 584
A Closer Look : How Unemployment and Inflation May Be Self-Correcting under Fixed Exchange Rates ... 586
Monetary Policy under Flexible Exchange Rates since 1974 ... 588
Looking Out : Capital Flows and the Mexican Peso Crisis ... 591
A Closer Look : Comparing Returns in a Globalized Economy ... 592
The Globalization of Monetary Policy ... 594
A Closer Look : Foreign Exchange Market Intervention ... 596
Summary of Major Points ... 597
Glossary ... 601
Index ... 613
Photo Credits ... 627