Financial Markets and Institutions, Global Edition

Frederic S. Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University. From September 2006 to August 2008, he was a member (governor) of the Board of Governors of the Federal Reserve System. He is also a research associate at the National Bureau of Economic Research and past president of the Eastern Economics Association. Since receiving his PhD from the Massachusetts Institute of Technology in 1976, he has taught at the University of Chicago, Northwestern University, Princeton University, and Columbia University. He has also received an honorary professorship from the People's (Renmin) University of China. From 1994 to 1997, he was executive vice president and director of research at the Federal Reserve Bank of New York and an associate economist of the Federal Open Market Committee of the Federal Reserve System. Mishkin's research focuses on monetary policy and its impact on financial markets and the aggregate economy. He is the author of more than twenty books. Stanley G. Eakins has notable experience as a financial practitioner, serving as vice president and comptroller at the First National Bank of Fairbanks and as a commercial and real estate loan officer. A founder of the Denali Title and Escrow Agency, a title insurance company in Fairbanks, Alaska, he also ran the operations side of a bank and was the chief finance officer for a multimillion-dollar construction and development company. Professor Eakins received his PhD from Arizona State University. He is the Dean for the College of Business at East Carolina University. His research is focused primarily on the role of institutions in corporate control and how they influence investment practices. He is also interested in integrating multimedia tools into the learning environment and has received grants from East Carolina University in support of this work. A contributor to journals such as the 'Quarterly Journal of Business and Economics', the 'Journal of Financial Research', and the 'International Review of Financial Analysis', Eakins is also the author of 'Corporate Finance Online' (CFO) (Pearson, 2014), a multimedia online text designed from the ground up for electronic delivery.

PART I: INTRODUCTION

Why Study Financial Markets and Institutions?
Overview of the Financial System

PART II: FUNDAMENTALS OF FINANCIAL MARKETS

What Do Interest Rates Mean and What Is Their Role in Valuation?
Why Do Interest Rates Change?
How Do Risk and Term Structure Affect Interest Rates?
Are Financial Markets Efficient?

PART III: FUNDAMENTALS OF FINANCIAL INSTITUTIONS

Why Do Financial Institutions Exist?
Why Do Financial Crises Occur and Why Are They So Damaging to the Economy?

PART IV: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY

Central Banks
Conduct of Monetary Policy

PART V: FINANCIAL MARKETS

The Money Markets
The Bond Market
The Stock Market
The Mortgage Markets
The Foreign Exchange Market

Appendix: The Interest Parity Condition



The International Financial System

PART VI: THE FINANCIAL INSTITUTIONS INDUSTRY

Banking and the Management of Financial Institutions
Financial Regulation
Banking Industry: Structure and Competition
The Mutual Fund Industry
Insurance Companies and Pension Funds
Investment Banks, Security Brokers and Dealers, and Venture Capital Firms

PART VII: THE MANAGEMENT OF FINANCIAL INSTITUTIONS

Risk Management in Financial Institutions
Hedging with Financial Derivatives

CONTENTS ON THE WEB

25. Financial Crises in Emerging Market Economies
26. Savings Associations and Credit Unions
27. Finance Companies
4. Appendix 1: Models of Asset Pricing
4. Appendix 2: Applying the Asset Market Approach to a Commodity Market: The Case of Gold
4. Appendix 3: Loanable Funds Framework
4. Appendix 4: Supply and Demand in the Market for Money: The Liquidity Preference Framework
18. Appendix: Banking Crises Throughout the World
24. Appendix: More on Hedging with Financial Derivatives