Stephen Cecchetti?s new text on Money and Banking offers a fresh, more modern, and more
student-friendly approach to the subject. The author has drawn on his vast experience as
Vice President at the Federal Reserve Bank of New York, publishing in and editing various
journals, and consulting for the European Central Bank, the Bank of England, the Bank of
Israel, and the Reserve Bank of Australia as well as his years of teaching at various
schools including Ohio State, Brandeis, Princeton, and Oxford University. Students will
find the material more relevant and interesting because of the book?s unique emphasis on
the Five Core Principles, the early introduction of risk, and an integrated global
perspective. Cecchetti is THE money and banking book for today?s students; by focusing on
the big picture via core principles, Cecchetti teaches students the rationale for
financial rules and institutional structure so that even when the financial system
evolves, students? knowledge will not be out of date.
Table of Contents
Part I. Money and the Financial System
Chapter 1. An Introduction to Money and the Financial System
Chapter 2. Money and the Payments System
Chapter 3. Financial Instruments, Financial Markets, and Financial Institutions
Part II. Interest Rates, Financial Instruments, and Financial Markets
Chapter 4. Future Value, Present Value and Interest Rates
Appendix 4: The Algebra of Present-Value Formulas
Chapter 5. Understanding Risk
Appendix 5A: A Quick Test to Measure Your Risk Tolerance
Appendix 5B: The Mathematics of Diversification
Chapter 6. Bonds, Bond Prices and the Determination of Interest Rates
Chapter 7. The Risk and Term Structure of Interest Rates
Chapter 8. Stocks, Stock Markets and Market Efficiency
Chapter 9. Derivatives: Futures, Options and Swaps
Chapter 10. Foreign Exchange
Appendix 10: Interest Rate-Parity and Short-Run Exchange Rate Determination
Part III. Financial Institutions
Chapter 11. The Economics of Financial Intermediation
Chapter 12. Depository Institutions: Banks and Bank Management
Chapter 13. Financial Industry Structure
Chapter 14. Regulating the Financial System
Part IV. Central Banks, Monetary Policy, and Financial Stability
Chapter 15. Central Banks in the World Today
Chapter 16. The Structure of Central Banks: The U.S. Federal Reserve and the European
Central Bank
Chapter 17. The Central Bank Balance Sheet and the Money Supply Process
Chapter 18. Monetary Policy: Using Interest Rates to Stabilize the Domestic Economy
Chapter 19. Exchange-Rate Policy and the Central Bank
Appendix 19: What You Really Need to Know about the Balance of Payments
Part V. Modern Monetary Economics
Chapter 20. Money Growth, Money Demand, and Monetary Policy
Chapter 21. Monetary Policy and Aggregate Demand
Chapter 22. Understanding Business Cycles
Chapter 23. Monetary Policy, Output, and Inflation in the Short Run
Glossary
Index
649 pages
