目录
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 /1 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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER 5 WEB APPENDIX 2
Applying the Asset Market Approach to a Commodity Market: The Case of Gold
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER 5 WEB APPENDIX 3
Loanable Funds Framework
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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 ? Questions60
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 158 ? Applied Problems 159 ?
Data Analysis Problems 160 ? Web?Exercises 160 ? Web References 160
CHAPTER7 WEB APPENDIX
Evidence on the Efficient Market Hypothesis
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER 9 WEb APPEndix 2
Measuring Bank Performance
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
globalWhere 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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER10 WEB APPENDIX 2
Banking Crises Throughout the World
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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 ..................................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.................................... 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 i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'sNote
About the Author
Foreword
Preface
n 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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER17 WEB APPENDIX 2
The M2 Money Multiplier
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER17 WEB APPENDIX 3
Explaining the Behavior of the Currency Ratio
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER17 WEB APPENDIX 4
The Great Depression Bank Panics, 1930–1933, and the Money Supply
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER19 WEB APPENDIX 2
A Brief History of Federal Reserve Policymaking
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
BudgGlossary
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 ..........................................................et 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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER22 WEB APPENDIX 2
Empirical Evidence for the Demand for Money
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER23 WEB APPENDIX 2
Aggregate Demand and Supply: A Numerical Example
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER23 WEB APPENDIX 3
The Algebra of the Aggregate Demand and Supply Model
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
CHAPTER23 WEB APPENDIX 4
The Taylor Principle and Inflation Stability
Go to the Companion Website, http://www.pearsonhighered.com/mishkin
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
Go to the Companion Website, http://www.pearsonhighered.com/mishkin...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'sNote
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.
