The Economics of Money & Banking

This book stresses a few basic economic principles that never go out of date, rather than a set of facts that quickly do so, to understand the role of money in the economy and the structure of financial markets and institutions. To make this economic approach to teaching Money and Banking or Financial Markets and Institutions even more effective, it is important to keep the textbook analysis up to date by supplementing it with current articles on money, financial markets and institutions. The fourth edition develops a unifying economic framework to organize students' thinking about financial markets and institutions so that they can make sense of, rather than be confused by, all the facts about our financial system. The strength of this approach, in contrast to the approach used in other textbooks which focus on a set of facts about financial institutions, is that it will not go out of date. Because this approach stresses lasting economic concepts, it allows instructors to discuss the latest developments in financial markets and institutions. The numerous current readings on financial markets and institutions that will appear annually in this and future editions of the Reader and the stress on economic analysis in the textbook provide a whole new way of teaching financial markets and institutions.