Economics of Money, Banking and Financial Markets

by Frederic S. Mishkin

This is a Pearson Global Edition. The Pearson editorial team worked closely with educators around the world to include content especially relevant to students outside the United States.

The Economics of Money, Banking, and Financial Markets set the standard for money and banking courses when it published in its first edition, and it continues to be the worldwide market leader.

The historic economic events and financial crises of late 2008 have changed the entire landscape of money and banking. Having just served as Governor of the Federal Reserve, only Mishkin has the unique insider's perspective needed to present the current state of money and banking and explain the latest debates and issues for today’s students.

By applying a unified analytical framework to the models, Mishkin makes theory intuitive for students, and the rich array of current, real-world events keeps students motivated. Authoritative, comprehensive, and flexible, the text is easy to integrate into a wide variety of syllabi, and its ancillaries provide complete support when teaching the course.

Part I Introduction
1. Why Study Money, Banking, and Financial Markets?
2. An Overview of the Financial System
3. What Is Money? A Comparative Approach to Measuring Money

Part II Financial Markets
4. Understanding Interest Rates
5. The Behavior of Interest Rates
6. The Risk and Term Structure of Interest Rates
7. The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

Part III Financial Institutions
8. An Economic Analysis of Financial Structure
9. Financial Crises and the Subprime Debacle
10. Banking and the Management of Financial Institutions
11. Economic Analysis of Financial Regulation
12. Banking Industry: Structure and Competition

Part IV Central Banking and the Conduct of Monetary Policy
13. Central Banks: A Global Perspective
14. The Money Supply Process
15. Tools of Monetary Policy
16. What Should Central Banks Do? Monetary Policy Goals, Strategy, and Tactics

Part V International Finance and Monetary Policy
17. The Foreign Exchange Market: Exchange Rates and Applications
18. The International Financial System

Part VI Monetary Policy
19. The Demand for Money
20. The ISLM Model
21. Monetary and Fiscal Policy in the ISLM Model
22. Aggregate Demand and Supply Analysis
23. Transmission Mechanisms of Monetary Policy: The Evidence
24. Money and Inflation
25. Rational Expectations: Implications for Policy

Genres: Economics, Finance, Textbooks, Business, Nonfiction, Academic, Money

200 pages, Paperback

First published June 1, 1986

About the author

Frederic Stanley "Rick" Mishkin is an American economist and professor at the Columbia Business School. He was a member of the Board of Governors of the Federal Reserve System from 2006 to 2008.

Mishkin's research focuses on monetary policy and its impact on financial markets and the aggregate economy.

Reviews

[Vathna · Rating 4 out of 5]

Almost broke my skull reading this, but it is probably one of the most useful economics textbooks out there.

I never thought I'd enjoy this course, but it has become my favorite this semester. Recommended for all who are interested in investment banking or economics in general.

[علي آل ناصر · Rating 5 out of 5]

The best economics book that I have read up to now. It was our assigned book for the course (ECON305: Money and Banking). We did not cover the whole book in the course, but after finishing the course I got enthusiastic about reading it fully. I really loved the topics of money and its role in the economy. Probably I will allocate some time to read it again :)
I strongly recommend it for those who are interested in economics and finance, provided you have read books of principles of economics.

[Jennifer · Rating 5 out of 5]

I really loved this book and class. I found out that I would really enjoy investment banking. Plus, I also realized how much I like Economics. It has made me excited about getting my Master's. I am looking forward to some more Econ classes next semester.

[Kevin Carson · Rating 4 out of 5]

It's decent as a technical introduction to the workings of the banking and financial system.
But Mishkin seems literally incapable of imagining any alternative institutional arrangements aside from the ones we have.
He starts out by restating, uncritically, the base assumption behind what Schumpeter called "money theories of credit": that credit must be issued "against" some pre-existing stockpile of wealth, as opposed to simply coordinating different groups of producers advancing their production streams to one another, and that banks perform the necessary intermediary function of transforming "savings" into investment capital. Given this necessity, the Hamiltonian approach of the Paulson-Summers TARP (keeping investment assets from depreciating, so banks would lend against them) was also obviously necessary.

[Bill Zhou · Rating 5 out of 5]

Basic ideas for finance and financial market.

[Gerrit Gmel · Rating 4 out of 5]

A good textbook overall. While a bit needlessly confusing in parts, this was a great companion to my macro class given by the author’s former colleague at the Fed. It’s quite pragmatic and fairly easy to understand when you have some background in the field.

[AJ · Rating 4 out of 5]

I little verbose but a book that has given me great clarity on the purpose of money, banks, and central banks.

[Shere · Rating 4 out of 5]

i think that it would be a good book and help us in our search

[Waleed · Rating 4 out of 5]

I finished a course modeled around this book. It's a great primer towards building an understanding of how things are in the financial markets and the role of different stakeholders. But this book particularly shines at clearly illustrating and explaining the housing crisis, probably the best I've understood it.
My only knock against the book is not following up with the proof & derivation of some formulas to see & intuitively process why they make sense.

[Hamidreza Aziminia · Rating 5 out of 5]

A good textbook to understand the basic concepts in macroeconomics, the financial market and banking. While we read papers and general reading about money and macroeconomics, textbooks and review papers discipline our knowledge. It is a good textbook for understanding banking and money.

[Jahzel · Rating 3 out of 5]

While this book is a good introduction for anyone interested in monetary economics, certain details regarding the theory are left out and can remove understanding behind the intuition of certain phenomena.

[Shahadat Sajal · Rating 5 out of 5]

Essential for the student of economics and banking...

[Booker · Rating 3 out of 5]

Read 12th Global edition (not in Goodreads).
I read the chapters about interest rates, bonds and stocks. The explanations are very technical and the part about stocks is short.

[Karen Robillos · Rating 4 out of 5]

IT IS VERY INTERESTING

[Chang Yang · Rating 5 out of 5]

The book is concise and easy to follow. It presents some fundamental theories and some striking (for me ) results. The beauty emerges when the theory and reality coincide.

[Patrick Lu 嘉泺 · Rating 5 out of 5]

Mishkin’s work is great for any rudimentary courses in basic monetary theory or banking.

[Margarita Katznelson · Rating 5 out of 5]

Breviloquent in the best possible way. Lots of useful basic information.

[Ghita Mihai · Rating 5 out of 5]

Mi a mâncat zilele sa mi bag pula in mă sa da știe mishkin bine

[Andreas Engström · Rating 4 out of 5]

Go Frederic Mishkin

[Ly Casnocha · Rating 4 out of 5]

If you are concerned about finance and investment, I think this is quite a useful source. It provided sufficient information yet with detailed analysis. In terms of economics, finance or investment matters, which I believe form the concern for a majority of audience, in my opinion, Mishkin compiled a comprehensive and qualified publication. I think you shall not hesitate to refer to it in order to sharpen comprehension of major economics and finance affairs, as well as the major drives towards influential phenomena occurring in any nation.

[San San · Rating 4 out of 5]

A great book for people in economics field. I have read this book when I studied in university. Its take a sense of knowledge in Banking, Financial markets. This book is very usefull. I have recommended this book for my friends and all of them like it ;)
This book is the same as the macroeconomics or Microeconomics, which introduced to reader the based knowledge

[Rishabh · Rating 5 out of 5]

Had read this book during my time at B-School.This is the most interesting and well prepared book on Economic sciences and Financial markets I ever read before. I have read about dozen of books so far in the area of Finance and macroeconomics but this textbook stands above all.

[Anni · Rating 5 out of 5]

A very user friendly and practical ways to learn economics.

[Fran · Rating 5 out of 5]

Note to self: Main text for Econ 121: Money and Banking under Prof. Beth Tan, 2nd Semester 1996-97, UP School of Economics

[Melissa Brogan · Rating 2 out of 5]

Not a great textbook layout, and relies a little too heavily on the class using MyEconLab, which my professor chose not to use.

[Joshua · Rating 5 out of 5]

Probably one of the best Economics textbooks I've read. Very insightful and a must read.

[Navdeep Kumar]

NA

[Yuuki · Rating 4 out of 5]

this is a good book

[Haneen Elghreeb]

good

[Tanbhasut Srinanta · Rating 5 out of 5]

so good