The Financial System and the Economy

Maureen Burton

Part 1 Introduction; Chapter 1 Introduction and Overview; Chapter 2 Money and Its Role in the Economy; Chapter 3 The Overseer: The Federal Reserve System; Chapter 4 Financial Markets, Instruments, and Market Makers; Part 2 Financial Prices; Chapter 5 Interest Rates and Bond Prices; Chapter 6 The Structure of Interest Rates; Chapter 7 Market Efficiency and the Flow of Funds Among Sectors; Part 3 Financial Institutions; Chapter 8 An Introduction to Financial Intermediaries and Risk; Chapter 9 Commercial Banking Structure, Regulation, and Performance; Chapter 10 Financial Innovation; Chapter 11 Financial Instability and Strains on the Financial System; Chapter 12 Regulation of the Banking System and the Financial Services Industry; Part 4 Financial Markets; Chapter 13 The Debt Markets; Chapter 14 The Stock Market; Chapter 15 Securities Firms, Mutual Funds, and Financial Conglomerates; Chapter 16 How Exchange Rates Are Determined; Chapter 17 Forward, Futures, and Options Agreements; Chapter 18 The International Financial System; Part 5 Monetary Theory; Chapter 19 The Fed, Depository Institutions, and the Money Supply Process; Chapter 20 The Demand for Real Money Balances and Market Equilibrium; Chapter 21 Financial Aspects of the Household, Business, Government, and Rest-of-the-World Sectors; Chapter 22 Aggregate Demand and Aggregate Supply; Part 6 Monetary Policy; Chapter 23 The Challenges of Monetary Policy; Chapter 24 The Process of Monetary Policy Formulation; Chapter 25 Policy Implementation; Chapter 26 Monetary Policy in a Globalized Financial System;