本书是货币金融学领域的一本经典著作，自引入中国以来，一直畅销不衰。本版较前一版做了较大的改动，增加了很多新的内容、应用和专栏。本书共6篇25章，通过建立一个统一的分析框架，用基本经济学理论帮助读者理解金融市场、金融机构管理、中央银行和货币政策以及国际金融等问题。
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本书特点
虽然经历了一次重大修订，但本书仍旧保留了前几版作为最畅销货币金融学教科书的基本特点，尽管该书已经发行了30年之久。
本书通过利用基本的经济学原理，构建一个统一的分析框架，进而促进学生对金融市场结构、外汇市场、金融机构管理以及货币政策在经济中作用的深入思考。
本书的经济模型采用了一种细致的、循序渐进的建模方式来讲解（这也是经济学经典教科书所常用的方法），因此更便于学生学习。
本书是在一个国际视野的框架下写就的，而不单单是美国视角。
本书全面更新了货币理论的最新进展。
尤为突出的一大特点是书中“金融新闻解读”专栏，可以帮助学生学会阅读金融类报刊。
同时以应用为导向，全书还涵盖众多的应用题和专题，通过向学生展示如何将理论应用于实际的案例，来提高他们的学习兴趣。
第4版新增内容
我们将尽可能地把所有数据更新至2014年，同时，在教材的每一部分都更新了许多主要的内容。
【MyEconLab】 加强版培生电子文本与迷你讲座视频：
新学习方式
第4版的“MyEconLab”（我的经济学实验室）是加强版培生电子文本，可提供教科书资源在线获取。教师与学生可以重点强调文本、加书签、查询术语表以及做笔记。更重要的是，加强版培生电子文本提供了一种尤其适合于当今学生的新的学习方式。学生不仅能够阅读教科书上的内容，而且通过简单点击图标即可观看由作者展示的超过120场迷你讲座视频（包括文中的每一幅图）。对于分析型图表，这些迷你讲座一步步构建图解，并进行必要解释以使学生充分理解图表背后的理论。对于数据型图表，迷你讲座突出的关键数据点，是最大的好处所在。迷你讲座对学生而言是一种非常宝贵的学习工具，因为当学生看到和听到经济学分析时，他们通常会学得更好。
【FRED（ECONOMIC DATA|ST LOUIS FED）】实时数据
书中大部分数据图表有“MyEconLab Real-Time Data”（实时数据）的标注。关于这些图表，学生可以利用圣路易斯联邦储备银行FRED数据库，在加强版培生电子文本中查看最新数据。另外，该教材新版本中有全新的一类涉及实时数据分析的问题，要求学生从圣路易斯联邦储备银行FRED网站下载数据，然后运用这些数据回答有关宏观经济当前的问题。
在MyEconLab中，这些易于分配和自动分级的实时数据在分析问题时可以直接与FRED网站关联，所以每次学生上线时都能看到FRED上传的最新数据。因此，对于希望在宏观经济课程中运用最新数据分析问题的教师而言，实时数据系统成为他们必不可少的解决方案。这些练习不仅能帮助学生更好地理解宏观经济，而且能够使他们知道书本内容与实际生活的联系。
商学院版本：更基于金融导向的方法
本人很高兴能够继续提供两个版本的“货币金融学”。这两个版本都包括了所有学者均想覆盖的核心章节。但是《货币金融学》（商学院版）提供了一种更加基于金融的方法——很多商学院更常使用该方法教学，而且一些经济领域的教授在讲授货币金融学课程时也更偏向于该方法。特别是对于那些不太强调货币理论的教授而言，《货币金融学》（商学院版）将会更加满足他们的需求。此商学院版包含关于非银行金融、金融衍生产品和金融业利益冲突的章节，但省略了关于IS曲线、货币政策、总需求曲线以及货币政策预期的作用的章节。
对于渴望全面讨论货币理论和货币政策的教授来说，《货币金融学》（第11版）包含了所有关于货币理论的章节。但不得不说，那些教授通常很难把所有金融与机构的章节都覆盖。
第三篇“金融机构”的重新编排
2007～2009年的全球金融危机已经成为货币金融学教学中的一个中心论题。当我讲授这些内容时，我发现学生对危机动态的理解要更为深入，前提是在详细钻研全球金融危机之前，他们被传授了关于银行管理、金融监管和影子银行体系的内容。基于以上原因，我将“金融危机”这一章移到了“银行业与金融机构管理”“金融监管的经济学分析”和“银行业：结构与竞争”这三章之后。
另外，本书第三篇新添加了下列内容：
参考资料栏目“抵押品的‘苛政’”（第8章）。
就证券化与影子银行体系提供更详尽介绍的新小节（第11章）。
关于金融监管对全球金融危机的回应（第12章）。
探索“对于‘大而不倒’问题能够做什么”的新小节（第12章）。
在应对全球金融危机的部分一些新的经济规定（第12章）。
在探索如何应对（大而不倒）部分中的新问题（第12章）。
非常规货币政策和零利率下限
当政策利率—美联储利率达到零利率即所谓的“零利率”下限时，政策制定者被迫寻找非常规的货币政策，货币政策进入新世界。政策利率不能降到零以下，若降到零以下，此时的常规货币政策将会无效。在零利率下限的非常规货币政策，比如量化宽松的货币政策，成为一个引发学生兴趣的探讨性问题。第4版对于这个问题做出了更广泛的讨论，包括以下新材料：
量化宽松的新应用和2007～2014年的货币供给（第17章）。
远期指导的升级部分和未来政策行动（第18章）。
在零利率下限时货币政策使用扩大供给和需求模型来解释零利率下限如何影响货币政策实施（第24章）。
2013年日本安倍经济学和日本货币政策变动（第24章）。
欧元危机
自从2010年起出现的欧元危机成为一种持续性现象，这一版包括以下新材料：
欧洲主权债务危机（第12章）。
货币联盟（第21章）。
其他新材料
货币和银行领域的新发展使我为保证课本时效性添加了以下新材料：
比特币会成为未来的货币吗（第3章）。
奥巴马政府的加税政策对债券利率的影响（第6章）。
联邦储备体系沟通策略的演进（第16章）。
自主性意味着什么（第23章）。
网上章节和附录
本书的联合网站是课外学习的重要资源。第4版的货币金融学网上教程包括《货币金融学》第11版涵盖的有关新生金融市场模型的章节，这些章节如下：
网上课程1 新型市场经济涌现的金融危机。
网上课程2 IS曲线。
网上课程3 货币政策和总需求曲线。
网上课程4 货币政策中的期待的角色。
网上课程5 ISLM模型。
新的网上附录包括：
第4章附录 衡量利率风险：久期。
第5章附录1 资产定价模型。
第5章附录2 在商品市场上运用资产市场方式：黄金案例。
第5章附录3 可贷资金框架。
第7章附录 有效市场假说的证据。
第9章附录1 久期缺口分析。
第9章附录2 衡量银行表现。
第10章附录1 20世纪80年代银行存款和储蓄危机。
第10章附录2 全球性银行危机。
第17章附录1 美联储资产负债表和基础货币。
第17章附录2 M2货币供给。
第17章附录3 解释现金比率的行为。
第17章附录4 大萧条银行恐慌（1930～1933年）和货币供给。
第19章附录1 货币目标。
第19章附录2 美联储货币政策制定的简要历史。
第22章附录1 货币需求鲍莫尔—托宾和托宾平均方差模型。
第22章附录2 货币需求的实证性证据。
第23章附录1 对资产价格的宏观经济冲击影响。
第23章附录2 总供给和总需求：数值举例。
第23章附录3 总供给和总需求代数模型。
第23章附录4 泰勒规则和通胀稳定性。
第25章附录：评估实证研究：对于经济波动货币重要性讨论。
教师可以在课上使用网上教程附录来补充课本材料或者将其推荐给对金融和银行领域比较感兴趣的学生。
灵活性与模块化
在之前几个版本的使用过程中，本书的灵活性与模块化，即章节内容的挑选及叙述顺序的安排，一直为采用者、评论人以及相关受访人员所津津乐道。由于每位教师的教授方法都不尽相同，所以在货币金融学课程的学习中，灵活性与模块化显得尤为重要。为了满足教师的多元需求，本书的灵活性主要体现如下：
核心章节提供了一些贯穿整本教材的基本分析方法，教师根据自身的偏好，在其他章节中也可以选择使用。例如，第2章介绍了金融体系以及诸如交易成本、逆向选择和道德风险的基本概念。所以在讲授完第2章之后，老师可以通过选择第8章对金融体系进行更深入的讲解，当然也可以选择其他讲授顺序而跳过第8章的内容。
如果教师希望学生对货币政策的基本原理有更深入的理解，可以选择在讲授第四篇之前，先向学生讲解第六篇中较简单的货币内容。
第25章中有关货币政策传导机制的内容可以选择在课程中的许多不同时点进行讲授。例如，教师可以在对于货币政策的讨论结束之后结合第四篇内容进行讲解，也可以在介绍完总需求的概念之后结合第23章的内容进行讲授。当然，货币政策的传导机制也可以作为一个专题在课程末进行教授。
通过标记出每章中有关国际内容的小节，以及将汇率市场与国际货币体系内容单独成章，本书的国际方法既实现了全面综合的特性又实现了灵活可变的特性。尽管许多教师都会教授所有的国际内容，但是也有教师选择跳过。不想过多强调国际专题的教师可以选择轻松跳过第20章的外汇市场以及第21章的国际因素和货币政策。由于每章中的国际小节都是独立的，所以跳过这些小节并不会影响整体的连续性。
为了说明本书如何能够用于侧重点不同的课程，我们提供了一些适用于一学期课程安排的课程大纲。教学手册中包含了更多有关如何在课程中灵活使用本书的可用信息。
一般货币银行学课程：第1～5章、9～11章、16章、18章、23～24章，以及从剩余13章中选择7章。
强调国际专题的一般货币银行学课程：第1～5章、9～11章、16章、18～21章、23～24章，以及从剩余10章中选择4章。
金融市场与金融机构课程：第1～12章，以及从剩余13章中选择7章。
教学帮助
无论是教授基本理论还是实践应用，本书都是一种坚实的激励工具。为此，我总结了一系列有助于内容学习的教学特点：
每章开篇部分的导言告诉学生本章内容的开始位置、专题的重要性以及这些专题与书中其他主题的联系。
应用总数超过50个，展现了书中的理论分析如何用于解释实际情况。
“金融新闻解读”专栏向学生介绍了每天媒体出版印刷的相关新闻文章及数据，培养学生解读这些数据的能力。
“走进美联储”专栏使学生对联邦储备体系运作及其结构有了一种直观的感受。
“环球视野”专栏展示了一些引发国际关注的有趣资料。
“参考资料”专栏强调了一些有关本章主题的戏剧性历史事件、有趣的思想以及引人入胜的事实情况。
“本章小结”对内容回顾提供了一种十分有益的学习帮助。
“关键表述”是一些用黑体表示的学生可以轻松找到作为参考的重要知识点。
超过120幅带标题说明的图形可以帮助学生理解图中变量之间的内在关系以及分析原则。
每章后面的小结列出了本章的主要知识点。
超过600道每章末尾的思考题以及应用问题有助于学生运用经济概念学习相关内容。
“数据分析题”要求学生使用从圣路易斯联邦储备银行FRED数据库中获得的最新数据，以理解经济的实时变化。
“网络练习”鼓励学生通过网络渠道收集信息或者使用网络资源加深学习体验。
“网络参考”为学生列出了可以提供作为本书补充资料的信息数据的网站。
“术语表”提供了对于所有术语的定义的解释。
一种简单的教学方式：第4版的补充
第4版包含了对任何一本货币金融学教材的最完整补充。
我的电子图书馆
基于创造出一种能够将艰涩难懂的内容转变为显而易见内容的契机，我的电子图书馆得以设计和完善。辅之以综合性的家庭作业、小测、考试以及教程选项，教师可以在一个项目中管理他们的评定需要。
为《货币金融学》所准备的MyEconLab给学生以及教师提供以下资源：
可以在MyEconLab找到所有章末习题以及应用题。
为课文提供的软件以及可供留作业的习题。
“小课堂” 视频（Mini-Lecture Videos）为课文中所有数据以及图表提供逐步分析。
根据学生对例题以及作业的掌握程度而制定的“个人学习规划”（Personal Study Plan）。
针对问题的“即时指导反馈”（Instant Tutorial Feedback）以及响应式图表。
“互动学习辅助”（Interactive Learning Aids）包括“帮我解答”（逐步解答教程），在学生需要的时候为他们提供帮助。
“新闻”可以在课上使用或者留作课后参考。每周更新的新闻以及附赠的讨论问题可以将时事带入教室与课堂。
“数据分析题”让教师在留作业时使用最新的数据。每一个“数据分析题”都涉及从FRED （由圣路易斯联邦储备银行维护的具有综合性和实效性的数据集）下载最新、最合适的数据。练习会以使用的特定数据为基础进行评分，并将其反馈给使用者。
“高质量的个人电子课本”可以通过在线课程材料获得或者通过iPad以及安卓应用程序离线获得，这允许教师和学生进行标注、摘录和注释。
“问答题和作图题自动分级”针对所有作业。
强大的记分册所提供的信息灵活、丰富。它可以提供学生完成作业的情况以及所用时间的数据。
先进的交流工具，能够使学生与教师通过电子邮件、留言板、实时对话以及Classlive进行交流。
个性化选项提供新的、高效率的共享文件、添加内容以及重命名菜单选项的途径。
一个学生可以获得所有MyLab资源的途径。学生与教师可以在http://www.pearsonmylab.com上注册、制作以及浏览他们在MyLab上的所有资源，不受学科限制。
欲了解更多信息，请访问http://www.pearsonmylab.com。
为教师提供的额外资源
教师资源手册——这份由我准备的在线资源提供传统的教学所需，比如课程大纲范例、章节大纲以及教材中测验与问题的答案。
PowerPiont?演示文稿—这项在线资源提供教材中涉及的所有图表以及所有课程材料的详尽教案。事实上，这些以我在课上使用的教案为基础，它们也应该能够帮助其他教师像我备课一样进行准备。在这一版书中，德保罗大学的保罗·库比克（Paul Kubik）添加了额外的教案。我们希望使用板书上课的教师可以将PowerPonit幻灯片作为自己的课堂笔记；希望使用视觉辅助的教师可以使用幻灯片来上课。教师可以编辑幻灯片中的分析图表以适应所有关键指标的逐步讲解的需要。
题库—这项在线资源由西密歇根大学的詹姆斯·黄（James Hueng）以及得州大学阿灵顿分校的凯西·凯利（Kathy Kelly）更新与修订。题库包含超过2 500道大多有图表的选择题以及短文测试题。题库的作者根据国际高等商学院协会（Association to the Advance Collegiate School of Business，AACSB）的一般知识与能力指导文件编写题目，以确保学习达到要求的标准。AACSB是由教学机构、社团和其他致力于促进与发展商业管理以及会计学高等教育的其他组织组成的非营利性组织。AACSB认定体系的一项重要指标就是课程质量。虽然没有明确的课程要求，但是AACSB希望得到一个具有下列课程学习经验的课程体系：书面以及口头交流、伦理理解、逻辑推理、分析性思考、信息技术、人际关系以及团队合作、多元文化工作环境、批判性思维以及知识的应用。检测与上述要求相关的技能的测试题被认为能够轻松地识别与评估学生对知识的掌握能力。
TestGen这项在线资源能够协助教师高效地编写考试题。这项资源包含在线题库中的选择题以及论述题，并且可以进行编辑。它在Windows以及Macintosh系统下均可运行。
Mishkin Companion Website这项在线资源（http://www.pearsonmylab.com）以拥有包含多样的话题、简化的章节以及章末的URL链接的附录为特点。
致谢
在这样浩大的工程中，总有一些需要感谢的人。我要特别感谢培生商业出版的副总裁Donna Bttista以及策划编辑Christina Masturzo。我还要感谢Alsison Kalil、Carolyn Philips以及Kathy Smith的贡献，同时我也得到了哥伦比亚大学学生的帮助。另外，我还参考了外部评论者特别是Jin Eaton 以及Aaron Jackson具有思想性的评论。他们的评论让本书更加完善。特别地，我要感谢在这版教材编写过程中进行审校的教授（具体人名省略）。
最后，我想感谢我的妻子Sally、我的儿子Matthew以及我的女儿Laura。他们为我的工作提供了一个温暖、愉悦的环境；我也要感谢我现已过世的父亲Sidney，他很久之前就将我带上了创作本书的道路。
货币金融学
本书是货币银行学领域的经典著作，自引入中国以来，一直畅销不衰。本版较前一版做了较大的改动，增加了很多新的内容、应用和专栏。本书共6篇25章，通过建立一个统一的分析框架，用基本经济学理论帮助读者理解金融市场、金融机构管理、中央银行和货币政策以及国际金融等问题。
本书适合金融专业以及相关经济专业师生作为教材使用，也适合作为专业人士参考用书。
推荐阅读，加封面54654
目 录
出版说明
作者简介
导读
前言
术语表
第一篇 导论
第1章 为什么要研究货币、银行和金融市场 /2
1.1 研究金融市场的原因 /2
1.2 研究银行和其他金融机构的原因 /5
1.3 研究货币和货币政策的原因 /7
1.4 研究国际金融问题的原因 /12
1.5 研究货币、银行和金融市场过程中使用的方法 /14
1.6 结束语 /15
本章小结 /15
关键术语 /16
思考题 /16
应用题 /17
数据分析题 /17
网络练习 /18
网络参考 /18
附录1A 对于总产出、总收入、物价水平和通货膨胀率的定义/19
第2章 金融体系概览 /22
2.1 金融市场的功能 /22
2.2 金融市场的结构 /25
2.3 金融市场工具 /27
2.4 金融市场的国际化 /31
2.5 金融中介机构的功能：间接融资 /33
2.6 金融中介机构的类型 /38
2.7 金融体系的监管 /42
本章小结 /45
关键术语 /46
思考题 /46
应用题 /47
数据分析题 /48
网络练习 /48
网络参考 /48
第3章 什么是货币 /49
3.1 货币的含义 /49
3.2 货币的职能 /50
3.3 支付体系的演变 /53
3.4 货币的计量 /56
本章小结 /59
关键术语 /60
思考题 /60
应用题 /61
数据分析题 /62
网络练习 /62
网络参考 /62
第二篇 金融市场
第4章 理解利率 /64
4.1 利率的计量 /64
4.2 利率和回报率的区别 /75
4.3 实际利率和名义利率的区别 /79
本章小结 /82
关键术语 /82
思考题 /82
应用题 /83
数据分析题 /84
网络练习 /84
网络参考 /84
网络附录 /84
第5章 利率行为 /85
5.1 资产需求的决定因素 /85
5.2 债券市场的供给和需求 /88
5.3 均衡利率的变动情况 /91
5.4 货币市场的供给和需求：流动性偏好理论 /101
5.5 流动性偏好理论中的均衡利率变动 /104
5.6 货币和利率 /107
本章小结 /112
关键术语 /112
思考题 /112
应用题 /113
数据分析题 /114
网络练习 /115
网络参考 /115
网络附录 /115
第6章 利率的风险与期限结构 /116
6.1 利率风险的结构 /116
6.2 利率的期限结构 /124
本章小结 /136
关键术语 /136
思考题 /136
应用题 /138
数据分析题 /138
网络练习 /139
网络参考 /139
第7章 股票市场、理性预期理论和有效市场假说 /140
7.1 普通股股票价格的计算 /140
7.2 股票市场的定价机制 /143
7.3 理性预期理论 /145
7.4 有效市场假说：金融市场中的理性预期理论 /149
7.5 为什么有效市场假说并不意味着金融市场是有效的 /155
7.6 行为金融 /156
本章小结 /157
关键术语 /158
思考题 /158
应用题 /159
数据分析题 /160
网络练习 /160
网络参考 /160
网络附录 /160
第三篇 金融机构
第8章 金融结构的经济学分析 /162
8.1 世界各国金融结构的基本特征 /162
8.2 交易成本 /165
8.3 信息不对称：逆向选择和道德风险 /167
8.4 次品车问题：逆向选择如何影响金融结构 /167
8.5 道德风险如何影响债权合约和股权合约的选择 /173
8.6 道德风险如何影响债务市场的金融结构 /176
本章小结 /182
关键术语 /183
思考题 /183
应用题 /184
数据分析题 /185
网络练习 /185
网络参考 /185
第9章 银行业与金融机构管理 /186
9.1 银行的资产负债表 /186
9.2 银行的基本业务 /190
9.3 银行管理的基本原则 /193
9.4 信用风险管理 /201
9.5 利率风险管理 /205
9.6 表外业务活动 /208
本章小结 /211
关键术语 /212
思考题 /212
应用题 /213
数据分析题 /213
网络练习 /214
网络参考 /214
第10章 金融监管的经济学分析 /215
10.1 信息不对称与银行监管 /215
10.2 金融监管类别 /220
本章小结 /231
关键术语 /231
思考题 /231
应用题 /232
数据分析题 /232
网络练习 /233
网络参考 /233
第11章 银行业：结构与竞争 /234
11.1 银行体系的发展历史 /234
11.2 金融创新和“影子银行体系”的发展 /237
11.3 美国商业银行业的结构 /249
11.4 银行并购与全美范围的银行业 /252
11.5 银行业与其他金融服务业的分离 /256
11.6 储蓄行业：监管和结构 /258
11.7 国际银行业务 /260
本章小结 /263
关键术语 /264
思考题 /264
数据分析题 /265
网络练习 /266
网络参考 /266
第12章 金融危机 /267
12.1 什么是金融危机 /267
12.2 历史上美国金融危机的发生机制 /268
12.3 2007～2009年的全球金融危机 /274
12.4 金融监管的反应 /283
12.5 大而不倒和未来的监管 /285
本章小结 /287
关键术语 /288
思考题 /288
数据分析题 /289
网络练习 /290
网络参考 /290
网络章节 /290
第13章 非银行金融机构 /291
13.1 保险业 /291
13.2 养老基金 /299
13.3 财务公司 /302
13.4 证券市场运作 /303
13.5 共同基金 /305
13.6 对冲基金 /307
13.7 私募股权投资基金和风险投资基金 /308
13.8 政府金融中介机构 /309
本章小结 /311
关键术语 /312
思考题 /312
应用题 /313
数据分析题 /313
网络练习 /314
网络参考 /314
第14章 金融衍生工具 /315
14.1 避险 /315
14.2 远期利率合约 /316
14.3 金融期货合约和金融期货市场 /318
14.4 期权 /325
14.5 互换 /332
14.6 信用衍生产品 /334
本章小结 /338
关键术语 /338
思考题 /339
应用题 /339
数据分析题 /340
网络练习 /340
网络参考 /340
第15章 金融行业中的利益冲突 /341
15.1 利益冲突及其重要性 /342
15.2 职业道德和利益冲突 /342
15.3 利益冲突的种类 /343
15.4 市场可以限制利益冲突吗 /347
15.5 为了解决利益冲突问题已采取了哪些措施 /349
15.6 克服利益冲突的政策的评估框架 /351
本章小结 /356
关键术语 /357
思考题 /357
网络练习 /358
网络参考 /358
第四篇 中央银行与货币政策的制定
第16章 中央银行与联邦储备体系 /360
16.1 美国联邦储备体系的起源 /360
16.2 联邦储备体系的结构 /361
16.3 联邦储备体系的独立性 /371
16.4 联邦储备体系应该保持独立性吗 /373
16.5 解释中央银行的行为 /375
16.6 欧洲中央银行的结构与独立性 /377
16.7 其他国家中央银行的结构与独立性 /379
本章小结 /381
关键术语 /382
思考题 /382
数据分析题 /383
网络练习 /383
网络参考 /383
第17章 货币供给过程 /384
17.1 货币供给过程的三个参与者 /384
17.2 联邦储备体系的资产负债表 /384
17.3 基础货币的控制 /386
17.4 多倍存款创造：一个简化的模型 /391
17.5 决定货币供给的因素 /397
17.6 货币供给过程综述 /398
17.7 货币乘数 /399
本章小结 /405
关键术语 /405
思考题 /405
应用题 /406
数据分析题 /407
网络练习 /407
网络参考 /408
第18章 货币政策工具 /409
18.1 准备金市场和联邦基金利率 /409
18.2 常规货币政策工具 /416
18.3 非常规货币政策工具和量化宽松 /423
18.4 欧洲央行的货币政策工具 /429
本章小结 /430
关键术语 /431
思考题 /431
应用题 /432
数据分析题 /433
网络练习 /433
网络参考 /433
第19章 货币政策的实施：战略与策略 /434
19.1 物价稳定目标和名义锚 /434
19.2 货币政策的其他目标 /436
19.3 物价稳定应该是货币政策的首要目标吗 /438
19.4 通货膨胀目标制 /439
19.5 美联储货币政策战略的变革 /445
19.6 全球金融危机中的货币政策战略 /449
19.7 中央银行应该试图阻止资产价格泡沫吗 /451
19.8 策略：政策工具的选择 /455
19.9 策略：泰勒规则 /458
本章小结 /462
关键术语 /462
思考题 /463
应用题 /464
数据分析题 /464
网络练习 /465
网络参考 /466
网络应用 /466
第五篇 国际金融与货币政策
第20章 外汇市场 / 468
20.1 外汇市场 /468
20.2 长期汇率 /471
20.3 短期汇率：供求分析 /476
20.4 解释汇率的变动 /478
本章小结 /487
关键术语 /487
思考题 /487
应用题 /488
数据分析题 /489
网络练习 /489
网络参考 /490
附录20A /491
第21章 国际金融体系 /495
21.1 外汇市场干预 /495
21.2 国际收支 /499
21.3 国际金融体系下的汇率制度 /501
21.4 资本管制 /510
21.5 IMF的职责 /511
21.6 国际因素和货币政策 /512
21.7 盯住还是不盯住：作为货币政策战略的汇率目标制 /513
本章小结 /519
关键术语 /520
思考题 /520
应用题 /521
数据分析题 /522
网络练习 /522
网络参考 /522
第六篇 货币理论
第22章 货币数量论、通货膨胀和货币需求 /524
22.1 货币数量论 /524
22.2 预算赤字和通货膨胀 /530
22.3 凯恩斯的货币需求理论 /533
22.4 货币需求资产组合理论 /534
22.5 货币需求的实证分析 /536
本章小结 /538
关键术语 /538
思考题 /538
应用题 /540
数据分析题 /540
网络练习 /541
网络参考 /541
网络附录 /541
第23章 总需求和总供给分析 /543
23.1 总需求 /543
23.2 总供给 /549
23.3 总供给曲线的位移 /551
23.4 总供给和总需求分析中的均衡 /555
23.5 总需求冲击导致的均衡变动 /559
23.6 均衡变动：总供给（通货膨胀）冲击 /562
23.7 外国经济周期AD/AS分析 /570
本章小结 /574
关键术语 /575
思考题 /575
应用题 /576
数据分析题 /576
网络练习 /577
网络参考 /577
网络附录 /577
附录23A 菲利普斯曲线和短期总供给曲线 /578
第24章 货币政策理论 /587
24.1 货币政策对经济冲击的反应 /587
24.2 政策制定者怎样主动地稳定经济活动 /595
24.3 通货膨胀：无论何时何地都是一种货币现象 /596
24.4 通货膨胀型货币政策的根源 /597
24.5 零利率下限的货币政策 /603
本章小结 /612
关键术语 /612
思考题 /613
应用题 /614
数据分析题 /614
网络练习 /615
网络参考 /615
第25章 货币政策传导机制 /616
25.1 货币政策传导机制 /616
25.2 货币政策的启示 /625
本章小结 /628
关键术语 /628
思考题 /628
应用题 /629
数据分析题 /630
网络练习 /630
网络参考 /631
网络附录 /631
Brief Contents
The Publisher's Note
About the Author
Foreword
Preface
Glossary
PART 1 INTRODUCTION 1
1 Why Study Money, Banking, and Financial Markets? ......................................2
2 An Overview of the Financial System .....................................................22
3 What Is Money? ....................................................49
ParT 2 FINANCIAL MARKETS 63
4 The Meaning of Interest Rates ...........................................64
5 The Behavior of Interest Rates ............................................................85
6 The Risk and Term Structure of Interest Rates ...................................................116
7 The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis ................140
ParT 3 Financial Institutions 161
8 An Economic Analysis of Financial Structure .....................................................162
9 Banking and the Management of Financial Institutions ...................................186
10 Economic Analysis of Financial Regulation .................................................215
11 Banking Industry: Structure and Competition ...............................................234
12 Financial Crises ....................................................267
13 Nonbank Finance .............................................................291
14 Financial Derivatives ..................................................................315
15 Conflicts of Interest in the Financial Industry ....................................................341
ParT 4 Central Banking and the Conduct of Monetary Policy 359
16 Central Banks and the Federal Reserve System .............................................360
17 The Money Supply Process ......................................................................384
18 Tools of Monetary Policy ...................................................................409
19 The Conduct of Monetary Policy: Strategy and Tactics ............................................434
ParT 5 International Finance and Monetary Policy 467
20 The Foreign Exchange Market ....................................................................468
21 The International Financial System ..................................................495
ParT 6 Monetary Theory 523
22 Quantity Theory, Inflation, and the Demand for Money .........................................524
23 Aggregate Demand and Supply Analysis ..............................................543
24 Monetary Policy Theory .......................................................................587
25 Transmission Mechanisms of Monetary Policy ....................................................616
Contents in Deatil
The Publisher's Note
About the Author
Foreword
Preface
Glossary
ParT 1 Introduction 1
CHAPTER 1
Why Study Money, Banking, and Financial Markets? 2
Why Study Financial Markets? ........................................................................2
The Bond Market and Interest Rates .................................................................3
The Stock Market ..............................................................................3
Why Study Financial Institutions and Banking? ....................................................5
Structure of the Financial System ............................................................6
Banks and Other Financial Institutions ....................................................6
Financial Innovation ....................................................................6
Financial Crises ...........................................................7
Why Study Money and Monetary Policy? .........................................................7
Money and Business Cycles ..................................................................7
Money and Inflation .............................................................8
Money and Interest Rates .........................................................10
Conduct of Monetary Policy ....................................................................10
Fiscal Policy and Monetary Policy .................................................................11
Why Study International Finance? ......................................................12
The Foreign Exchange Market ............................................................12
The International Financial System .............................................................14
How We Will Study Money, Banking, and Financial Markets ........................................14
Exploring the Web ............................................................................15
Concluding Remarks.................................................................................15
Summary 15 ? Key Terms 16 ? Questions 16 ? Applied Problems 17 ? Data Analysis Problems 17 ? Web Exercises 18 ? Web References 18aPPendiX To chaPTer 1Defining Aggregate Output, Income, the Price Level, and the Inflation Rate 19
Aggregate Output and Income .....................................................................19
Real Versus Nominal Magnitudes .................................................................19
Aggregate Price Level ......................................................................20
Growth Rates and the Inflation Rate .........................................................................21
CHAPTER 2
An Overview of the Financial System 22
Function of Financial Markets ...........................................................22
Structure of Financial Markets ........................................................25
Debt and Equity Markets .............................................................25
Primary and Secondary Markets .................................................................25
Exchanges and Over-the-Counter Markets ............................................................26
Money and Capital Markets ...........................................................27
ForewordPrefaceAbout Contents in DetailFinancial Market Instruments .....................................27
Money Market Instruments ...................................................................27
following the financial news Money Market Rates 28
Capital Market Instruments ....................................................................29
following the financial news Capital Market Interest Rates 30
Internationalization of Financial Markets .............................................................31
Global Are U.S. Capital Markets Losing Their Edge? 32
International Bond Market, Eurobonds, and Eurocurrencies ................................................32
World Stock Markets ...........................................................................33
Function of Financial Intermediaries: Indirect Finance ..................................................33
Following the financial news Foreign Stock Market Indexes 34
Transaction Costs ....................................................................34
Global The Importance of Financial Intermediaries Relative to Securities Markets: An International Comparison 35
Risk Sharing .............................................................................36
Asymmetric Information: Adverse Selection and Moral Hazard ............................................36
Economies of Scope and Conflicts of Interest ................................................38
Types of Financial Intermediaries ........................................................................38
Depository Institutions ...............................................................38
Contractual Savings Institutions ............................................................40
Investment Intermediaries .................................................................41
Regulation of the Financial System ..........................................................................42
Increasing Information Available to Investors ..............................................42
Ensuring the Soundness of Financial Intermediaries .......................................................43
Financial Regulation Abroad...........................................................45
Summary 45 ? Key Terms 46 ? Questions 46 ? Applied Problems 47 ? Data Analysis Problems 48 ? Web Exercises 48 ? Web References 48
CHAPTER 3
What Is Money? 49
Meaning of Money ............................................................................49
Functions of Money ...............................................................................50
Medium of Exchange ....................................................................50
Unit of Account .......................................................51
Store of Value ...........................................................52
Evolution of the Payments System ......................................................................53
Commodity Money .....................................................................53
Fiat Money ..............................................................................53
Checks ............................................................................................53
Electronic Payment ..............................................................54
E-Money .........................................................................54
FYI Are We Headed for a Cashless Society? 55
PPLICATION Will Bitcoin Become the Money of the Future? .............................55
Measuring Money ............................................................................56
The Federal Reserve’s Monetary Aggregates .....................................................56
Following the financial news The Monetary Aggregates 57
FYI Where Are All the U.S. Dollars? 58
Summary 59 ? Key Terms 60 ? Questions 60 ? Applied Problems 61 ? Data Analysis Problems 62 ? Web Exercises 62 ? Web References 62
PART Financial Markets 63
CHAPTER 4
The Meaning of Interest Rates 64
Measuring Interest Rates ........................................................................64
Present Value ........................................................................................... 64
APPLICATION Simple Present Value ......................................................................... 66
APPLICATION How Much Is That Jackpot Worth? ................................................... 66
Four Types of Credit Market Instruments ................................................. 67
Yield to Maturity ..................................................................................... 68
APPLICATION Yield to Maturity on a Simple Loan ................................................... 68
APPLICATION Yield to Maturity and the Yearly Payment
on a Fixed-Payment Loan .......................................... 70
APPLICATION Yield to Maturity and Bond Price for a Coupon Bond ...................... 71
APPLICATION Yield to Maturity on a Perpetuity ...................................................... 73
APPLICATION Yield to Maturity on a Discount Bond ............................................... 74
The Distinction Between Interest Rates and Returns.......................................................75
Maturity and the Volatility of Bond Returns: Interest-Rate Risk ........................................... 78
Summary ............................................................................................... 79
The Distinction Between Real and Nominal Interest Rates ...................................................79
APPLICATION Calculating Real Interest Rates .......................................................... 80
Summary 82 ? Key Terms 82 ? Questions 82 ? Applied Problems 83 ?
Data Analysis Problems 84 ? Web Exercises 84 ? Web References 84
CHAPTER 4 WEB APPENDIX
Measuring Interest-Rate Risk: Duration
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CHAPTER 5
The Behavior of Interest Rates 85
Determinants of Asset Demand ..............................................................85
Wealth ...................................................... 86
Expected Returns .................................................................................... 86
Risk .......................................................... 86
Liquidity ........................................................................... 87
Theory of Portfolio Choice ...................................................................... 87
Supply and Demand in the Bond Market ...............................................................88
Demand Curve ........................................................................................ 88
Supply Curve .......................................................................................... 89
Market Equilibrium ................................................................................. 90
Supply and Demand Analysis ...................................................... 91
Changes in Equilibrium Interest Rates .........................................................91
Shifts in the Demand for Bonds ......................................................... 92
Shifts in the Supply of Bonds......................................................... 95
APPLICATION Changes in the Interest Rate Due to Expected Inflation:
The Fisher Effect .................................................................... 97
APPLICATION Changes in the Interest Rate Due to a Business Cycle Expansion .............................. 99
APPLICATION Explaining Low Japanese Interest Rates ..........................................100
Supply and Demand in the Market for Money:
The Liquidity Preference Framework ..................................................101
Changes in Equilibrium Interest Rates in the Liquidity Preference Framework.................104
Shifts in the Demand for Money .............................................. 104
Shifts in the Supply of Money.................................................. 104
APPLICATION Changes in the Equilibrium Interest Rate Due to
Changes in Income, the Price Level, or the Money Supply .............................105
Changes in Income ................................................................................ 106
Changes in the Price Level ..................................................................... 106
Changes in the Money Supply .................................................. 106
Money and Interest Rates ....................................................................107
APPLICATION Does a Higher Rate of Growth of the Money Supply
Lower Interest Rates? .......................................................................................109
Summary 112 ? Key Terms 112 ? Questions 112 ? Applied Problems 113 ?
Data Analysis Problems 114 ? Web Exercises 115 ? Web References 115
CHAPTER 5 WEB APPENDIX 1
Models of Asset Pricing
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CHAPTER 5 WEB APPENDIX 2
Applying the Asset Market Approach to a Commodity Market: The Case of Gold
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CHAPTER 5 WEB APPENDIX 3
Loanable Funds Framework
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CHAPTER 6
The Risk and Term Structure of Interest Rates 116
Risk Structure of Interest Rates ..........................................................116
Default Risk ......................................................................... 116
fyi Conflicts of Interest at Credit-Rating Agencies and the Global
Financial Crisis 120
APPLICATION The Global Financial Crisis and the Baa-Treasury Spread .............. 121
Liquidity ............................................................................. 121
Income Tax Considerations ........................................................... 122
Summary ............................................................................. 123
APPLICATION Effects of the Obama Tax Increase on Bond Interest Rates .............123
Term Structure of Interest Rates ........................................................124
following the financial news Yield Curves 124
Expectations Theory ............................................................ 126
Segmented Markets Theory .................................................. 129
Liquidity Premium and Preferred Habitat Theories ................................................... 130
Evidence on the Term Structure .......................................................... 133
FYI The Yield Curve as a Forecasting Tool for Inflation and the Business Cycle 134
Summary ................................................................ 134
APPLICATION Interpreting Yield Curves, 1980–2014 ............................................134
Summary 136 ? Key Terms 136 ? Questions 136 ? Applied Problems 138 ?
Data Analysis Problems 138 ? Web Exercises 139 ? Web References 139
CHAPTER 7
The Stock Market, the Theory of Rational Expectations,
and the Efficient Market Hypothesis 140
Computing the Price of Common Stock ........................................................140
The One-Period Valuation Model ................................................ 141
The Generalized Dividend Valuation Model .................................................... 142
The Gordon Growth Model ....................................................... 142
How the Market Sets Stock Prices .....................................................143
APPLICATION Monetary Policy and Stock Prices ...................................................145
APPLICATION The Global Financial Crisis and the Stock Market .........................145
The Theory of Rational Expectations ......................................................145
Formal Statement of the Theory ............................................................ 147
Rationale Behind the Theory .............................................................. 147
Implications of the Theory .................................................................. 148
The Efficient Market Hypothesis: Rational Expectations in Financial Markets ...................149
Rationale Behind the Hypothesis .................................................... 150
Random-Walk Behavior of Stock Prices .................................................... 151
global Should Foreign Exchange Rates Follow a Random Walk? 152
APPLICATION Practical Guide to Investing in the Stock Market ...........................152
How Valuable Are Reports Published by Investment Advisers? ........................................... 152
Should You Be Skeptical of Hot Tips? ............................................. 153
FYI Should You Hire an Ape as Your Investment Adviser? 154
Do Stock Prices Always Rise When There Is Good News? .................................................. 154
Efficient Market Prescription for the Investor ................................................. 154
Why the Efficient Market Hypothesis Does Not Imply
That Financial Markets are Efficient ................................................................155
APPLICATION What Do Stock Market Crashes Tell Us About the Efficient
Market Hypothesis and the Efficiency of Financial Markets? ..........................156
Behavioral Finance .................................................................................156
Summary 157 ? Key Terms 158 ? Questions 158 ? Applied Problems 159 ?
Data Analysis Problems 160 ? Web?Exercises 160 ? Web References 160
CHAPTER7 WEB APPENDIX
Evidence on the Efficient Market Hypothesis
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PART Financial Institutions 161
CHAPTER 8
An Economic Analysis of Financial Structure 162
Basic Facts About Financial Structure Throughout the World ................................................162
Transaction Costs ...................................................................................165
How Transaction Costs Influence Financial Structure ......................................................... 165
How Financial Intermediaries Reduce Transaction Costs .................................................... 166
Asymmetric Information: Adverse Selection and Moral Hazard ...........................................167
The Lemons Problem: How Adverse Selection Influences Financial Structure .................167
Lemons in the Stock and Bond Markets..................................................... 168
Tools to Help Solve Adverse Selection Problems ................................................... 168
FYI The Enron Implosion 170
How Moral Hazard Affects the Choice Between Debt and Equity Contracts..................................173
Moral Hazard in Equity Contracts: The Principal–Agent Problem ....................................... 173
Tools to Help Solve the Principal–Agent Problem ............................................................... 174
How Moral Hazard Influences Financial Structure in Debt Markets .....................................176
Tools to Help Solve Moral Hazard in Debt Contracts .......................................................... 176
Summary ............................................................................. 178
APPLICATION Financial Development and Economic Growth ..............................179
FYI The Tyranny of Collateral 180
APPLICATION Is China a Counterexample to the Importance
of Financial Development? ...............................................................................181
Summary 182 ? Key Terms 183 ? Questions 183 ? Applied Problems 184 ?
Data Analysis Problems 185 ? Web Exercises 185 ? Web References 185
CHAPTER 9
Banking and the Management of Financial Institutions 186
The Bank Balance Sheet .......................................................................186
Liabilities ............................................................................. 186
Assets .................................................................................. 189
Basic Banking .....................................................................................190
General Principles of Bank Management ...............................................193
Liquidity?Management?and?the?Role?of?Reserves ........................................................ 193
Asset?Management ............................................................... 196
Liability?Management .......................................................... 197
Capital?Adequacy?Management ............................................................... 198
APPLICATION Strategies for Managing Bank Capital .............................................200
APPLICATION How a Capital Crunch Caused a Credit Crunch During
the Global Financial Crisis ...............................................................................201
Managing Credit Risk ............................................................................201
Screening and Monitoring ................................................... 202
Long-Term Customer Relationships ................................................... 203
Loan Commitments ............................................................. 204
Collateral and Compensating Balances .................................................... 204
Credit Rationing .................................................................. 205
Managing Interest-Rate Risk................................................................205
Gap and Duration Analysis ......................................................... 206
APPLICATION Strategies for Managing Interest-Rate Risk ......................................207
Off-Balance-Sheet Activities ...............................................................208
Loan Sales ........................................................................... 208
Generation of Fee Income ................................................... 208
Trading Activities and Risk Management Techniques .................................................. 209
Global Barings,?Daiwa, Sumitomo, Société\u8194XGénérale,?and?JP?Morgan?Chase:?
Rogue Traders and the Principal–Agent Problem 210
Summary 211 ? Key Terms 212 ? Questions 212 ? Applied Problems 213 ?
Data Analysis Problems 213 ? Web?Exercises 214 ? Web References 214
CHAPTER 9 WEb APPEndix 1
Duration Gap Analysis
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CHAPTER 9 WEb APPEndix 2
Measuring Bank Performance
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CHAPTER10
Economic Analysis of Financial Regulation 215
Asymmetric Information as a Rationale for Financial Regulation ...........................................215
Government Safety Net ....................................................... 215
global The Spread of Government Deposit Insurance Throughout the World:
Is This a Good Thing? 217
Drawbacks of the Government Safety Net .................................................... 218
Types of Financial Regulation .............................................................220
Restrictions on Asset Holdings ............................................................. 220
Capital Requirements .......................................................... 220
Prompt Corrective Action .................................................... 221
global Where Is the Basel Accord Heading After the Global Financial Crisis? 222
Financial Supervision: Chartering and Examination .................................... 223
Assessment of Risk Management ........................................................ 224
Disclosure Requirements ..................................................... 225
FYI Mark-to-Market Accounting and the Global Financial Crisis 226
Consumer Protection ........................................................... 226
Restrictions on Competition ............................................................. 227
Summary ............................................................................. 227
Global International Financial Regulation 228
Summary? 231 ? Key Terms 231 ? Questions? 231 ? Applied Problems 232? ????
Data Analysis Problems 232 ? Web?Exercises? 233 ? Web References 233
CHAPTER10 WEB APPENDIX 1
The 1980s Banking and Savings and Loan Crisis
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CHAPTER10 WEB APPENDIX 2
Banking Crises Throughout the World
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CHAPTER11
Banking Industry: Structure and Competition 234
Historical Development of the Banking System....................................................234
Multiple Regulatory Agencies .......................................................... 236
Financial Innovation and the Growth of the “Shadow Banking System” ..............................237
Responses to Changes in Demand Conditions: Interest-Rate Volatility ................................ 238
Responses to Changes in Supply Conditions: Information Technology ............................... 239
FYI Will “Clicks” Dominate “Bricks” in the Banking Industry? 241
Securitization and the Shadow Banking System ................................................ 242
Avoidance of Existing Regulations ................................................ 243
FYI Bruce Bent and the Money Market Mutual Fund Panic of 2008 245
Financial Innovation and the Decline of Traditional Banking .............................................. 246
Structure of the U.S. Commercial Banking Industry ..............................................249
Restrictions on Branching .................................................... 250
Response to Branching Restrictions ............................................... 251
Bank Consolidation and Nationwide Banking ......................................................252
The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 .......................... 253
What Will the Structure of the U.S. Banking Industry Look Like in the Future? ................. 254
Are Bank Consolidation and Nationwide Banking Good Things? ........................................ 254
Global Comparison of Banking Structure in the United States and Abroad 255
Separation of Banking and Other Financial Service Industries ...............................................256
Erosion of Glass-Steagall ...................................................... 256
The Gramm-Leach-Bliley Financial Services Modernization
Act of 1999: Repeal of Glass-Steagall ............................................ 256
Implications for Financial Consolidation .............................................. 257
FYI The Global Financial Crisis and the Demise of Large, Free-Standing
Investment Banks 257
Separation of Banking and Other Financial Services Industries Throughout the World....... 258
Thrift Industry: Regulation and Structure......................................................258
Savings and Loan Associations .............................................................. 258
Mutual Savings Banks .......................................................... 259
Credit Unions ...................................................................... 259
International Banking ............................................................................260
Eurodollar Market ............................................................... 260
Global Ironic Birth of the Eurodollar Market 261
Structure of U.S. Banking Overseas ....................................................... 261
Foreign Banks in the United States ............................................................. 262
Summary? 263 ? Key Terms 264 ? Questions? 264 ? Data?Analysis?
Problems? 265 ? Web?Exercises? 266 ? Web References 266
CHAPTER12
Financial Crises 267
What Is a Financial Crisis? ............................................................267
Dynamics of Financial Crises ...............................................................268
Stage One: Initial Phase ....................................................... 268
Stage Two: Banking Crisis .................................................... 269
Stage Three: Debt Deflation ................................................................ 271
APPLICATION The Mother of All Financial Crises: The Great Depression ............ 272
Stock Market Crash ............................................................. 272
Bank Panics ......................................................................... 272
Continuing Decline in Stock Prices ................................................... 273
Debt Deflation ..................................................................... 273
International Dimensions .................................................... 274
The Global Financial Crisis of 2007–2009 ................................................274
Causes of the 2007–2009 Financial Crisis .............................................. 274
FYI Collateralized Debt Obligations (CDOs) 275
Effects of the 2007–2009 Financial Crisis ....................................................... 276
inside the fed Was the Fed to Blame for the Housing Price Bubble? 277
global The European Sovereign Debt Crisis 280
Height of the 2007–2009 Financial Crisis ........................................ 281
Government Intervention and the Recovery ........................................... 282
global Worldwide Government Bailouts During the 2007–2009 Financial Crisis 283
Response of Financial Regulation ......................................................283
Macroprudential Versus Microprudential Supervision ........................................ 283
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ............................. 284
Too-Big-to-Fail and Future Regulation ........................................................285
What Can Be Done About the Too-Big-to-Fail Problem? ................................................. 285
Other Issues for Future Regulation ............................................................ 286
Summary 287 ? Key Terms 288 ? Questions 288 ? Data Analysis
Problems 289 ? Web?Exercises 290 ? Web References 290
CHAPTER13
Nonbank Finance 291
Insurance ..............................................................................291
Life Insurance ...................................................................... 291
Property and Casualty Insurance ................................................... 292
The Competitive Threat from the Banking Industry............................................... 294
Credit Insurance ................................................................ 294
FYI The AIG Blowup 295
FYI The Global Financial Crisis and the Monoline Insurers 296
APPLICATION Insurance Management ...................................................296
Screening ............................................................................ 297
Risk-Based Premiums .......................................................... 297
Restrictive Provisions ........................................................... 297
Prevention of Fraud ............................................................. 298
Cancellation of Insurance .................................................... 298
Deductibles ......................................................................... 298
Coinsurance ........................................................................ 298
Limits on the Amount of Insurance ............................................................ 298
Summary ............................................................................. 299
Pension Funds ......................................................................................299
Private Pension Plans ........................................................... 300
Public Pension Plans ........................................................... 301
FYI Should Social Security Be Privatized? 301
Finance Companies .....................................................302
Securities Market Operations ............................................................303
Investment Banking ............................................................. 303
Securities Brokers and Dealers .................................................. 304
Organized Exchanges .......................................................... 304
Mutual Funds ......................................................................305
FYI Sovereign Wealth Funds: Are They a Danger? 306
Money Market Mutual Funds ........................................................ 307
Hedge Funds ................................................................307
Private Equity and Venture Capital Funds ..................................................308
Government Financial Intermediation ....................................................309
Federal Credit Agencies ....................................................... 309
FYI The Global Financial Crisis and the Bailout of Fannie Mae and Freddie Mac 310
Summary? 311 ? Key Terms 312 ? Questions? 312 ? Applied Problems 313? ????
Data Analysis Problems 313 ? Web?Exercises? 314 ? Web References 314
CHAPTER14
Financial Derivatives 315
Hedging ................................................315
Interest-Rate Forward Contracts .......................................................316
APPLICATION Hedging with Interest-Rate Forward Contracts ..............................316
Pros and Cons of Forward Contracts .......................................... 317
Financial Futures Contracts and Markets ...................................................318
APPLICATION Hedging with Financial Futures ......................................................319
Organization of Trading in Financial Futures Markets ........................................... 321
The Globalization of Financial Futures Markets ............................................. 322
Explaining the Success of Futures Markets ....................................... 322
APPLICATION Hedging Foreign Exchange Risk .....................................................324
Hedging Foreign Exchange Risk with Forward Contracts ................................................... 324
Hedging Foreign Exchange Risk with Futures Contracts ......................................... 324
Options ........................................................................................325
Option Contracts ................................................................. 326
Profits and Losses on Option and Futures Contracts ................................................... 326
APPLICATION Hedging with Future Options ..................................................329
Factors Affecting Option Premiums ...................................................... 330
Summary ............................................................................. 331
Swaps...................................................................332
Interest-Rate Swap Contracts ........................................................ 332
APPLICATION Hedging with Interest-Rate Swaps ..................................................333
Advantages of Interest-Rate Swaps ......................................................... 333
Disadvantages of Interest-Rate Swaps ............................................... 334
Financial Intermediaries in Interest-Rate Swaps .......................................... 334
Credit Derivatives .........................................................................334
Credit Options .................................................................... 335
Credit Swaps ....................................................................... 335
Credit-Linked Notes ............................................................ 336
APPLICATION Lessons from the Global Financial Crisis: When Are
Financial Derivatives Likely to Be a Worldwide Ticking Time Bomb? ............336
Summary? 338 ? Key Terms 338 ? Questions 339 ? Applied Problems 339 ?
Data Analysis Problems 340 ? Web Exercises 340 ? Web References 340
CHAPTER15
Conflicts of Interest in the Financial Industry 341
What Are Conflicts of Interest, and Why Are They Important? ...........................................342
Why Do We Care About Conflicts of Interest? ..................................................... 342
Ethics and Conflicts of Interest ...........................................................342
Types of Conflicts of Interest .............................................................343
Underwriting and Research in Investment Banking ............................................................ 343
Auditing and Consulting in Accounting Firms ......................................................... 344
Credit Assessment and Consulting in Credit-Rating Agencies ............................................. 344
fyi The Collapse of Arthur Andersen 345
Universal Banking ............................................................... 345
FYI Why Do Issuers of Securities Pay to Have Their Securities Rated? 346
FYI Banksters 347
Can the Market Limit Exploitations of Conflicts of Interest? ...........................................347
What Has Been Done to Remedy Conflicts of Interest? ......................................................349
Sarbanes-Oxley Act of 2002 ............................................................... 349
Legal Settlement of 2002 ..................................................... 350
Dodd-Frank Bill of 2010 ..................................................... 351
A Framework for Evaluating Policies to Remedy Conflicts of Interest ..................................351
Approaches to Remedying Conflicts of Interest ................................................ 352
APPLICATION Evaluating Sarbanes-Oxley, the Global Legal Settlement,
and the Dodd-Frank Bill .........................................................................354
Summary? 356 ? Key Terms 357 ? Questions 357 ? Web?Exercises? 358 ?
Web References 358
PART 4 Central Banking and the Conduct of Monetary Policy 359
CHAPTER16
Central Banks and the Federal Reserve System 360
Origins of the Federal Reserve System ......................................................360
inside the fed The Political Genius of the Founders of the Federal
Reserve System 361
Structure of the Federal Reserve System .............................................361
Federal Reserve Banks ......................................................... 362
Inside the Fed The Special Role of the Federal Reserve Bank of New York 364
Member Banks .................................................................... 365
Board of Governors of the Federal Reserve System ................................................ 366
Federal Open Market Committee (FOMC) ............................................................ 366
inside the fed The Role of the Research Staff 367
inside the fed The FOMC Meeting 368
inside the fed Green, Blue, Teal, and Beige: What Do These Colors
Mean at the Fed? 369
Why the Chair of the Board of Governors Really Runs the Show ..................................... 369
inside the fed Styles of Federal Reserve Chairs: Bernanke and Yellen
Versus Greenspan 370
How Independent Is the Fed? ...........................................................371
Should the Fed Be Independent? .....................................................373
The Case for Independence ..................................................... 373
The Case Against Independence ........................................................... 374
Central Bank Independence and Macroeconomic Performance Throughout the World....... 375
Explaining Central Bank Behavior ......................................................375
inside the fed The Evolution of the Fed’s Communication Strategy 376
Structure and Independence of the European Central Bank .......................................377
Differences Between the European System of Central Banks
and the Federal Reserve System .......................................................... 377
Governing Council .............................................................. 378
How Independent Is the ECB? ......................................................... 379
Structure and Independence of Other Foreign Central Banks .....................................379
Bank of Canada ................................................................... 379
Bank of England .................................................................. 379
Bank of Japan ...................................................................... 380
The Trend Toward Greater Independence ..................................................... 381
Summary? 381 ? Key Terms 382 ? Questions? 382 ? Data?Analysis?
Problems? 383 ? Web?Exercises? 383 ? Web References 383
CHAPTER17
The Money Supply Process 384
Three Players in the Money Supply Process ...............................................384
The Fed’s Balance Sheet .......................................................................384
Liabilities ............................................................................. 385
Assets .................................................................................. 386
Control of the Monetary Base ............................................................386
Federal Reserve Open Market Operations............................................ 387
Shifts from Deposits into Currency ................................................ 388
Loans to Financial Institutions...................................................... 389
Other Factors That Affect the Monetary Base ................................................. 389
Overview of the Fed’s Ability to Control the Monetary Base ......................................... 390
Multiple Deposit Creation: A Simple Model ......................................................391
Deposit Creation: The Single Bank ..................................................... 391
Deposit Creation: The Banking System ................................................... 392
Deriving the Formula for Multiple Deposit Creation .............................................. 395
Critique of the Simple Model ........................................................... 396
Factors That Determine the Money Supply .......................................................397
Changes in the Nonborrowed Monetary Base, MBn ..................................................... 397
Changes in Borrowed Reserves, BR, from the Fed ................................................ 397
Changes in the Required Reserve Ratio, rr ............................................. 398
Changes in Excess Reserves .................................................................. 398
Changes in Currency Holdings ........................................................ 398
Overview of the Money Supply Process ..........................................................398
The Money Multiplier...............................................................399
Deriving the Money Multiplier .................................................. 399
Intuition Behind the Money Multiplier ................................................. 401
Money Supply Response to Changes in the Factors ................................................. 402
APPLICATION Quantitative Easing and the Money Supply, 2007–2014. ................ 403
Summary? 405 ? Key Terms 405 ? Questions? 405 ? Applied Problems 406 ?
Data Analysis Problems 407 ? Web?Exercises? 407 ? Web References 408
CHAPTER17 WEB APPENDIX 1
The Fed’s Balance Sheet and the Monetary Base
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CHAPTER17 WEB APPENDIX 2
The M2 Money Multiplier
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CHAPTER17 WEB APPENDIX 3
Explaining the Behavior of the Currency Ratio
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CHAPTER17 WEB APPENDIX 4
The Great Depression Bank Panics, 1930–1933, and the Money Supply
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CHAPTER18
Tools of Monetary Policy 409
The Market for Reserves and the Federal Funds Rate...................................................409
Demand and Supply in the Market for Reserves .......................................................... 410
How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate ..................... 411
APPLICATION How the Federal Reserve’s Operating Procedures Limit
Fluctuations in the Federal Funds Rate ...................................................415
Conventional Monetary Policy Tools ........................................................416
Open Market Operations ..................................................... 416
Discount Policy and the Lender of Last Resort .................................... 417
inside the fed A Day at the Trading Desk 418
Reserve Requirements ......................................................... 420
inside the fed Using Discount Policy to Prevent a Financial Panic 421
Interest on Reserves ............................................................. 422
Relative Advantages of the Different Tools ........................................... 422
Nonconventional Monetary Policy Tools and Quantitative Easing ...................................423
Liquidity Provision .............................................................. 423
Large-Scale Asset Purchases ........................................................ 424
inside the fed Fed Lending Facilities During the Global Financial Crisis 425
Quantitative?Easing?Versus?Credit?Easing................................................ 426
Forward Guidance and the Commitment to Future Policy Actions ..................................... 428
Monetary Policy Tools of the European Central Bank ...................................................429
Open Market Operations ..................................................... 429
Lending to Banks................................................................. 430
Reserve Requirements ......................................................... 430
Summary??430 ? Key Terms ?431 ? Questions??431 ? Applied Problems ?432 ?
Data Analysis Problems ?433 ? Web?Exercises??433 ? Web References ?433
CHAPTER19
The Conduct of Monetary Policy: Strategy and Tactics 434
The Price Stability Goal and the Nominal Anchor ..............................................434
The Role of a Nominal Anchor ................................................................. 435
The Time-Inconsistency Problem ..................................................... 435
Other Goals of Monetary Policy ........................................................436
High Employment and Output Stability ..................................... 436
Economic Growth ............................................................. 437
Stability of Financial Markets ........................................................... 437
Interest-Rate Stability .......................................................... 437
Stability in Foreign Exchange Markets .......................................... 438
Should Price Stability Be the Primary Goal of Monetary Policy? .....................................438
Hierarchical Versus Dual Mandates ...................................................... 438
Price Stability as the Primary, Long-Run Goal of Monetary Policy ....................................... 439
Inflation Targeting ..................................................................................439
Inflation Targeting in New Zealand, Canada, and the United Kingdom .............................. 440
Advantages of Inflation Targeting ........................................................... 442
Disadvantages of Inflation Targeting ................................................ 444
The Evolution of the Federal Reserve’s Monetary Policy Strategy ........................................445
The Fed’s “Just Do It” Monetary Policy Strategy .................................. 445
The Long Road to Inflation Targeting ..................................................... 447
inside the fed Ben Bernanke’s Advocacy of Inflation Targeting 447
global The European Central Bank’s Monetary Policy Strategy 448
Lessons for Monetary Policy Strategy from the Global Financial Crisis ...............................449
Implications for Inflation Targeting ................................................. 450
Should Central Banks Try to Stop Asset-Price Bubbles? ...............................................451
Two Types of Asset-Price Bubbles ............................................... 451
The Debate Over Whether Central Banks Should Try to Pop Bubbles ................................. 452
Tactics: Choosing the Policy Instrument .................................................455
Criteria for Choosing the Policy Instrument ........................................ 457
Tactics: The Taylor Rule ....................................................................458
inside the fed The Fed’s Use of the Taylor Rule 461
inside the fed Fed Watchers 461
Summary??462 ? Key Terms 462 ? Questions? 463 ? Applied Problems 464 ?
Data Analysis Problems 464 ? Web?Exercises? 465 ? Web References 466
CHAPTER19 WEB APPENDIX 1
Monetary Targeting
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CHAPTER19 WEB APPENDIX 2
A Brief History of Federal Reserve Policymaking
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PART 5 International Finance and Monetary Policy 467
CHAPTER20
The Foreign Exchange Market 468
Foreign Exchange Market .....................................................................468
What Are Foreign Exchange Rates? ..................................................... 469
following the financial news Foreign Exchange Rates 470
Why Are Exchange Rates Important? ................................................... 470
How Is Foreign Exchange Traded? .......................................................... 471
Exchange Rates in the Long Run ........................................................471
Law of One Price ................................................................. 471
Theory of Purchasing Power Parity ...................................................... 472
Why the Theory of Purchasing Power Parity Cannot Fully Explain Exchange Rates ........... 473
Factors That Affect Exchange Rates in the Long Run .......................................................... 474
Exchange Rates in the Short Run: A Supply and Demand Analysis .......................................476
Supply Curve for Domestic Assets .............................................................. 476
Demand Curve for Domestic Assets ............................................................. 476
Equilibrium in the Foreign Exchange Market ....................................................... 477
Explaining Changes in Exchange Rates ................................................478
Shifts in the Demand for Domestic Assets.................................................... 478
Recap: Factors That Change the Exchange Rate ...................................................... 481
APPLICATION Effects of Changes in Interest Rates on the
Equilibrium Exchange Rate .......................................483
APPLICATION Why Are Exchange Rates So Volatile?............................................. 484
APPLICATION The Dollar and Interest Rates ..........................................................485
APPLICATION The Global Financial Crisis and the Dollar ....................................486
Summary? 487 ? Key Terms 487 ? Questions? 487 ? Applied Problems 488 ?
Data Analysis Problems 489 ? Web?Exercises? 489 ? Web References 490
APPENDIX TO CHAPTER20
The Interest Parity Condition 491
Comparing Expected Returns on Domestic and Foreign Assets ............................................491
Interest Parity Condition ......................................................................493
CHAPTER21
The International Financial System 495
Intervention in the Foreign Exchange Market .....................................................495
Foreign Exchange Intervention and the Money Supply ............................................ 495
inside the fed A Day at the Federal Reserve Bank of New York’s
Foreign Exchange Desk 496
Unsterilized Intervention ..................................................... 498
Sterilized Intervention ......................................................... 499
Balance of Payments ..............................................................................499
global Why the Large U.S. Current Account Deficit Worries Economists 501
Exchange Rate Regimes in the International Financial System.......................................501
Gold Standard ..................................................................... 501
The Bretton Woods System ..................................................... 502
How a Fixed Exchange Rate Regime Works ......................................................... 503
Speculative Attacks .............................................................. 504
APPLICATION The Foreign Exchange Crisis of September 1992 ...........................505
The Policy Trilemma ............................................................ 506
APPLICATION How Did China Accumulate $4 Trillion
of International Reserves? ......................................................507
Monetary Unions ................................................................. 508
global Will the Euro Survive? 509
Managed Float ......................................................... 509
Capital Controls ...............................................................510
Controls on Capital Outflows ............................................................... 510
Controls on Capital Inflows ........................................................ 510
The Role of the IMF ...............................................................................511
Should the IMF Act as an International Lender of Last Resort? ........................................... 511
International Considerations and Monetary Policy .............................................512
Direct Effects of the Foreign Exchange Market on Monetary Policy .................................... 512
Balance-of-Payments Considerations ......................................................... 512
Exchange Rate Considerations ........................................................ 513
To Peg or Not to Peg: Exchange-Rate Targeting as an
Alternative Monetary Policy Strategy ...........................................................513
Advantages of Exchange-Rate Targeting ............................................ 513
Disadvantages of Exchange-Rate Targeting ............................................... 514
When Is Exchange-Rate Targeting Desirable for Industrialized Countries? .......................... 516
When Is Exchange-Rate Targeting Desirable for Emerging Market Countries? .................... 517
Currency Boards .................................................................. 517
global Argentina’s Currency Board 518
Dollarization ....................................................................... 519
Summary? 519 ? Key Terms 520 ? Questions? 520 ? Applied Problems 521 ?
Data Analysis Problems 522 ? Web?Exercises? 522 ? Web References ?522
PATT 6 Monetary Theory 523
CHAPTER22
Quantity Theory, Inflation, and the Demand for Money 524
Quantity Theory of Money ................................................................524
Velocity of Money and Equation of Exchange ............................................................. 524
From?the?Equation?of?Exchange?to?the?Quantity?Theory?of?Money ..................................... 526
Quantity?Theory?and?the?Price?Level ................................................................. 527
Quantity?Theory?and?Inflation .................................................................. 527
APPLICATION Testing the Quantity Theory of Money ...........................................528
Budget Deficits and Inflation ..............................................................530
Government Budget Constraint ............................................................... 530
Hyperinflation ..................................................................... 532
APPLICATION The Zimbabwean Hyperinflation ....................................................532
Keynesian Theories of Money Demand ..............................................................533
Transactions Motive ............................................................. 533
Precautionary Motive........................................................... 533
Speculative Motive .............................................................. 533
Putting the Three Motives Together ................................................... 533
Portfolio Theories of Money Demand ...........................................................534
Theory of Portfolio Choice and Keynesian Liquidity Preference .......................................... 535
Other Factors That Affect the Demand for Money ......................................................... 535
Summary ............................................................................. 536
Empirical Evidence for the Demand for Money ....................................................536
Interest Rates and Money Demand ............................................................. 536
Stability of Money Demand ........................................................... 537
Summary? 538 ? Key Terms 538 ? Questions? 538 ? Applied Problems 540 ?
Data Analysis Problems 540 ? Web?Exercises? 541 ? Web References 541
CHAPTER22 WEB APPENDIX 1
The Baumol-Tobin and Tobin Mean-Variance Model
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CHAPTER22 WEB APPENDIX 2
Empirical Evidence for the Demand for Money
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CHAPTER23
Aggregate Demand and Supply Analysis 543
Aggregate Demand ...............................................................................543
following the financial news Aggregate Output, Unemployment, and Inflation 544
Deriving the Aggregate Demand Curve ...................................................... 544
Factors That Shift the Aggregate Demand Curve..................................................... 545
FYI What Does Autonomous Mean? 546
Aggregate Supply ..................................................................................549
Long-Run Aggregate Supply Curve ............................................... 549
Short-Run Aggregate Supply Curve .............................................. 549
Price Stickiness and the Short-Run Aggregate Supply Curve ......................................... 551
Shifts in the Aggregate Supply Curves .........................................................551
Shifts in the Long-Run Aggregate Supply Curve ................................................. 551
Shifts in the Short-Run Aggregate Supply Curve .................................................. 552
Equilibrium in Aggregate Demand and Supply Analysis ..............................................555
Short-Run Equilibrium ........................................................ 556
How the Short-Run Equilibrium Moves to the Long-Run Equilibrium over Time ............... 556
Self-Correcting Mechanism ........................................................ 559
Changes in Equilibrium: Aggregate Demand Shocks ..................................................559
APPLICATION The Volcker Disinflation, 1980–1986 .............................................560
APPLICATION Negative Demand Shocks, 2001–2004 ............................................562
Changes in Equilibrium: Aggregate Supply (Inflation) Shocks .....................................562
Temporary Supply Shocks ................................................... 562
APPLICATION Negative Supply Shocks, 1973–1975 and 1978–1980 .................... 565
Permanent Supply Shocks and Real Business Cycle Theory ................................................ 565
APPLICATION Positive Supply Shocks, 1995–1999 ................................................568
Conclusions ........................................................................ 569
APPLICATION Negative Supply and Demand Shocks and the
2007–2009 Financial Crisis ...................................................570
AD/AS Analysis of Foreign Business Cycle Episodes ..............................................570
APPLICATION The United Kingdom and the 2007–2009 Financial Crisis ............ 572
APPLICATION China and the 2007–2009 Financial Crisis .....................................573
Summary? 574 ? Key Terms 575 ? Questions? 575 ? Applied Problems 576 ?
Data Analysis Problems 576 ? Web?Exercises? 577 ? Web References 577
aPPendiX To CHAPTER23
The Phillips Curve and the Short-Run Aggregate Supply Curve 578
The Phillips Curve ..............................................578
Phillips Curve Analysis in the 1960s ...................................................... 578
FYI The Phillips Curve Tradeoff and Macroeconomic Policy in the 1960s 580
The Friedman-Phelps Phillips Curve Analysis ................................................ 580
The Phillips Curve After the 1960s ..................................................... 582
The Modern Phillips Curve ............................................................... 582
The Modern Phillips Curve with Adaptive (Backward-Looking) Expectations .................... 583
The Short-Run Aggregate Supply Curve .....................................................584
CHAPTER23 WEB APPENDIX 1
The Effects of Macroeconomic Shocks on Asset Prices
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CHAPTER23 WEB APPENDIX 2
Aggregate Demand and Supply: A Numerical Example
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CHAPTER23 WEB APPENDIX 3
The Algebra of the Aggregate Demand and Supply Model
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CHAPTER23 WEB APPENDIX 4
The Taylor Principle and Inflation Stability
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CHAPTER24
Monetary Policy Theory 587
Response of Monetary Policy to Shocks ...........................................................587
Response to an Aggregate Demand Shock ............................................................ 588
Response to a Permanent Supply Shock .................................................... 590
Response to a Temporary Supply Shock ........................................... 592
The Bottom Line: The Relationship Between Stabilizing Inflation and
Stabilizing Economic Activity ............................................................. 595
How Actively Should Policymakers Try to Stabilize Economic Activity? .............................595
Lags and Policy Implementation ........................................................ 595
Inflation: Always and Everywhere a Monetary Phenomenon .............................................596
FYI The Activist/Nonactivist Debate Over the Obama Fiscal Stimulus Package 597
Causes of Inflationary Monetary Policy ......................................................597
High Employment Targets and Inflation ................................................. 597
APPLICATION The Great Inflation ..........................................................601
Monetary Policy at the Zero Lower Bound ........................................................603
Deriving the Aggregate Demand Curve with the Zero Lower Bound ................................... 603
The Disappearance of the Self-Correcting Mechanism at the Zero Lower Bound ................. 605
APPLICATION Nonconventional Monetary Policy and Quantitative Easing .......... 606
Liquidity Provision .............................................................. 607
Asset?Purchases?and?Quantitative?Easing .......................................... 608
Management of Expectations .............................................................. 609
APPLICATION Abenomics and the Shift in Japanese Monetary Policy in 2013 .........610
Summary? 612 ? Key Terms 612 ? Questions? 613 ? Applied Problems 614 ?
Data Analysis Problems 614 ? Web?Exercises? 615 ? Web References 615
CHAPTER 25
Transmission Mechanisms of Monetary Policy 616
Transmission Mechanisms of Monetary Policy ....................................................616
Traditional Interest-Rate Channels ............................................................ 617
Other Asset Price Channels ..................................................................... 618
Credit View ......................................................................... 621
FYI Consumers’ Balance Sheets and the Great Depression 623
Why Are Credit Channels Likely to Be Important? ............................................. 624
APPLICATION The Great Recession ..........................................................625
Lessons for Monetary Policy ...............................................................625
APPLICATION Applying the Monetary Policy Lessons
to Japan’s Two Lost Decades ..............................................................627
Summary 628 ? Key Terms 628 ? Questions 628 ? Applied Problems 629
Data Analysis Problems 630 ? Web Exercises 630 ? Web References 631
CHAPTER 25 WEB APPENDIX
Evaluating Empirical Evidence: The Debate Over the Importance
of Money in Economic Fluctuations
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