Money, the financial system, and the economy

목차 (Table of Contents)

• CONTENTS
• PART Ⅰ Introduction = 1
• CHAPTER 1 Introducing Money and the Financial System = 2
• Getting Started = 3
• The Financial System and the Economy = 4
• Financial Markets = 6
• Financial Institutions = 7
• Money = 9
• Economic Analysis as a Tool = 10
• Developing an Economic Approach = 10
• Applying an Economic Approach = 11
• Review Questions = 12
• Analytical Problems, Data Question = 13
• Other times, other places…The Only Thing constant in the Financial System Is Change = 6
• Consider this…Is the Financial System Truly Global? = 7
• CHAPTER 2 Money and the Payments System = 14
• Meeting the Needs of Exchange with Money = 15
• Barter = 15
• Government Allocation = 16
• Money = 16
• What Can Serve as Money? = 20
• The Payments System = 21
• Commodity Money = 21
• Fiat Money = 21
• Checks = 23
• Electronic Funds = 23
• Measuring the Money Supply = 25
• Measuring Monetary Aggregates = 25
• Selecting Monetary Aggregates = 28
• Review Questions, Analytical Problems = 32
• Data Questions = 33
• Appendix : Calculating Price Indexes = 34
• Consider this…Did the CIA Damage Irag's Currency? = 20
• Other times, other places…What's Money? Ask a Taxi Driver! = 22
• Using the news…Finding Up-to-Date Information on Money = 27
• Moving from theory to practice…Keep the Change, The Economist, 11／21／98 = 30
• CHAPTER 3 Overview of the Financial System = 35
• What Is the Purpose of the Financial System? = 36
• Key Services Provided by the Financial System = 38
• Risk Sharing = 39
• Liquidity = 39
• Information = 40
• Financial Markets in the Financial System = 41
• Matching Savers and Borrowers : Debt and Equity = 41
• Providing Risk-Sharing, Liquidity, and Information Services = 43
• Financial Intermediaries in the Financial System = 45
• Matching Savers and Borrowers = 46
• Providing Risk-Sharing, Liquidity, and Information Services = 46
• Competition and Change in the Financial System = 48
• Financial Innovation = 48
• Changes in Financial Integration and Globalization = 49
• Financial Regulation = 51
• Provision of Information = 52
• Maintenance of Financial stability = 52
• Advancement of Other Policy Objectives 53
• Effects of Regulation = 54
• Review Questions, Analytical Problems = 58
• Data Question = 59
• Appendix : Financial Instruments = 59
• Case Study Where Do Households Put Their Savings? = 47
• Consider this…Financial Innovation : Home Mortgages or Rock Star Bonds? = 49
• Other times, other places…The Growth of International Bond and Stock Markets = 51
• Moving from theory to practice…Stuffing Yen into a Drawer, The Wall Street Journal, 7／21／98 = 56
• PART Ⅱ Interest Rates = 65
• CHAPTER 4 Interest Rates and Rates of Return = 66
• Comparing Debt Instruments = 66
• Timing of Payments = 67
• Present Value = 70
• Using Yield to Maturity as a Yardstick = 73
• Bond Yields and Prices = 78
• Why Can Price and Face Value Differ? = 78
• How Are Bond Yields and Prices Related? = 80
• Finding the Total Rate of Return = 84
• Real versus Nominal Interest Rates = 85
• Review Questions = 89
• Analytical Problems = 92
• Data Questions = 93
• Consider this…Can They STRIP? Creating New Financial Instruments = 69
• Consider this…Who Will Buy Those Fabulous Fifties? = 80
• Using the news…Keeping Up with Bond Prices and Yields = 82
• Other times, other places…Principal Derailed : Inflation and Long-Term Bond Prices = 86
• Moving from theory to practice…Sweet Fifteen : Shorter Mortgages Are Gaining Support, The Wall Street Journal, 9／17／98 = 90
• CHAPTER 5 The Theory of Portfolio Allocation = 94
• Determinants of Portfolio Choice = 95
• Wealth = 96
• Expected Returns on Assets = 97
• Risk Associated with Asset Returns = 98
• Liquidity of Assets = 101
• Costs of Acquiring Information = 101
• Advantages of Diversification = 102
• Putting It All Together : Explaining Portfolio Allocation = 107
• Review Questions = 109
• Analytical Problems = 112
• Data Questions = 113
• Case Study How Much Risk Should You Tolerate in Your Portfolio? = 100
• Case Study Modeling Risk Premiums in Financial Markets = 105
• Other times, other places…Are Investors (Globally) Well Diversified? = 107
• Moving from theory to practice…Getting Europeans to Invest in Stocks, The New York Times, 3／1／98 = 110
• CHAPTER 6 Determining Market Interest Rates = 114
• Supply and Demand in the Bond Market and Loanable Funds = 115
• The Demand Curve = 115
• The Supply Curve = 117
• Market Equilibrium =117
• Explaining Changes in Equilibrium Interest Rates = 120
• Shifts in Bond Demand = 120
• Shifts in Bond Supply = 127
• Using the Model to Explain Changes in Interest Rates = 131
• Back to the Bond Market's Votes = 134
• The International Capital Market and the Interest Rate = 136
• Small Open Economy = 137
• Large Open Economy = 138
• Review Questions, Analytical Problems = 143
• Data Question = 145
• Consider this…Where Do Savings Come from? = 123
• Other times, other places…Do Interest Rates Rise During Wartime? = 130
• Moving from theory to practice…The Bond Market's Star Turn, The New York Times, 8／23／98 = 140
• CHAPTER 7 Risk Structure and Term Structure of Interest Rates = 146
• Risk Structure of Interest Rates = 147
• Default Risk = 147
• Liquidity = 153
• Information Costs = 154
• Taxation = 155
• Using the Risk Structure for Forecasting = 159
• Term Structure of Interest Rates = 160
• Segmented Markets Theory = 162
• Expectations Theory = 163
• Preferred Habitat Theory = 167
• Using the Term Structure for Forecasting = 169
• Review Questions, Analytical Problems = 175
• Data Question = 177
• Using the news…Using Bond Yields to Assess Risk = 148
• Consider this…Will Consumption Tax Kill Munis' Allure? = 159
• Other times, other places…Asian Flu for European Bonds? = 160
• Using the news…How to Read the Yield Curve = 161
• Consider this…Can the Treasury Change the Shape of the Yield Curve? = 171
• Moving from theory to practice…A Successful Bet on Inflation Bonds, The Wall Street Journal, 7／13／98 = 172
• PART Ⅲ Financial Markets = 179
• CHAPTER 8 The Foreign-Exchange Market and Exchange Rates = 180
• Exchange Rates and Trade = 181
• Nominal versus Real Exchange Rates = 182
• Foreign-Exchange Markets = 184
• Determining Long-Run Exchange Rates = 185
• Supply and Demand = 185
• Economic Fundamentals and Long-Run Exchange Rate Trends = 187
• The Law of One Price and the Purchasing Power Parity Theory = 189
• Does the Theory Match Reality? = 190
• Determining Short-Run Exchange Rates = 191
• Comparing Expected Returns on Domestic and Foreign Assets = 192
• Foreign-Exchange Market Equilibrium = 195
• Interest Rate Parity = 197
• Exchange Rate Fluctuations = 200
• Changes in Domestic Real Interest Rates = 200
• Changes in Domestic Expected Inflation = 200
• Changes in Foreign Interest Rates = 202
• Changes in the Expected Future Exchange Rate = 204
• Currency Premiums in Foreign-Exchange Markets = 206
• A (Big) New kid on the Block : The Euro = 207
• Review Questions = 210
• Analytical Problems = 211
• Data Question = 212
• Using the news…Reading Exchange Rates = 186
• Case Study Should You Bank on International Investments? = 199
• Other times, other places…Interest and Exchange Rates in the 1980s = 205
• Moving from theory to practice…Rate Cut for the Euro, The Wall Street Journal, 12／4／98 = 208
• CHAPTER 9 Derivative Securities and Derivative Markets = 213
• Forward Transactions and Derivatives = 214
• Futures = 215
• Futures Pricing = 216
• Using Futures to Manage Risk = 217
• Options = 221
• Options Pricing = 222
• Using Options to Manage Risk = 224
• Benefits of Derivative Markets for the Financial System = 225
• Standardization and Liquidity = 227
• Anonymous Trading and Information = 228
• Review Questions = 232
• Analytical Problems = 233
• Data Question = 234
• Appendix : Swaps = 234
• Using the news…Reading Financial Futures Listings = 217
• Using the news…Reading Options Listings = 223
• Other times, other places…Futures Trading, Index Arbitrage, and the Stock Market Crash of 1987 = 224
• Case Study Citron Pressed - The Orange County Fiasco = 225
• Case Study Barings Lost - The Queen's Banker Goes Bust = 226
• Moving from theory to practice…A Corporate Bond Future for Europe, Financial Times, 8／3／98 = 230
• CHAPTER 10 Information and Financial Market Efficiency = 237
• Rational Expectations = 238
• The Efficient Markets Hypothesis = 240
• Determining an Asset's Expected Price = 242
• Price Fluctuations = 243
• Investment Strategies = 244
• Actual Efficiency in Financial Markets = 248
• Pricing Anomalies = 248
• Mean Reversion = 249
• Excessive Volatility = 250
• Market Efficiency and the Crash of 1987 = 250
• Value Investing versus Efficient Markets = 254
• Costs of Inefficiency in Financial Markets = 254
• Costs of Excessive Price Fluctuations = 255
• Information Costs = 258
• Review Questions, Analytical Problems = 259
• Data Question = 260
• Consider this…Are Investors Really Rational? = 246
• Other times, other places…Charting the Civil War with the Gold Market = 247
• Case Study What Goes Up… = 252
• Moving from theory to practice…So, Is the Stock Market Overvalued?, The Wall Street Journal, 3／30／98 = 256
• CHAPTER 11 Reducing Transactions Costs and Information Costs = 261
• Obstacles to Matching Savers and Borrowers = 262
• Transactions Costs = 262
• Asymmetric Information and Information Costs = 263
• Adverse Selection = 264
• "Lemons Problems" in Financial Markets = 264
• Reducing Information Costs = 265
• Moral Hazard = 268
• Moral Hazard in Equity Financing = 268
• Moral Hazard in Debt Financing = 270
• Information Costs and Financial Intermediaries = 273
• Financial Intermediaries and Adverse Selection = 274
• Financial Intermediaries and Moral Hazard = 275
• Review Questions = 279
• Analytical Problems, Data Question = 280
• Consider this…Are Stock Market Signals Affected by Adverse Selection? = 268
• Consider this…Can Falling Prices Raise Information Costs? = 272
• Other times, other places…Corporate Raiders Then and Now = 274
• Moving from theory to practice…On the Cutting Edge of Corporate Control in China, The Wall Street Journal, 10／28／98 = 276
• PART Ⅳ Financial Institutions = 281
• CHAPTER 12 What Financial Institutions Do = 282
• Securities Market Institutions = 284
• Information : Investment Banking = 284
• Liquidity and Risk Sharing : Secondary Markets = 286
• Investment Institutions = 289
• Mutual Funds = 289
• Finance Companies = 292
• Contractual Saving : Insurance Companies = 293
• Principles of Insurance Management = 293
• Life Insurance Companies = 297
• Property and Casualty Insurance Companies = 298
• Regulation of Insurance Companies and Recent Trends = 299
• Contractual Saving : Pension Funds = 299
• Ownership of Pension Funds Assets = 301
• Funding of Pension Funds = 301
• Regulation of Private Pension Plans = 302
• Public Pension Plans = 302
• Recent Trends = 302
• Depository Institutions = 303
• Commercial Banks = 304
• Savings Institutions = 305
• Credit Unions = 305
• Government Financial Institutions = 308
• Direct Role : Federal Credit Agencies = 308
• Indirect Role : Loan Guarantees = 308
• Recent Trends = 305
• Financial Institutions : Blurring the Lines = 309
• Review Questions = 314
• Analytical Problems, Data Question = 315
• Using the news…A Tombstone for Something New? = 287
• Consider this…Can Investors Keep "Captives" at Bay? = 295
• Case Study What Kind of Financial Institution Is a Hedge Fund? = 306
• Moving from theory to practice…Trimming the Hedges, The Economist, 12／5／98 = 312
• CHAPTER 13 The Business of Banking = 316
• How Banks Earn Profits = 317
• Bank Liabilities = 317
• Bank Assets = 320
• Bank Net Worth = 321
• Bank Failure = 322
• Determining Bank Profits = 322
• The Relationship Between Banks and Savers = 325
• Managing Moral Hazard = 325
• Managing Liquidity Risk = 326
• The Relationship Between Banks and Borrowers = 329
• Managing Credit Risk = 330
• Managing Interest Rate Risk = 335
• Expanding the Boundaries of Banking = 338
• Opportunities and Financial Innovation = 339
• Off-Balance-Sheet Lending = 340
• Review Questions = 347
• Analytical Problems = 348
• Data Questions = 349
• Appendix : Measuring the Duration of Bank Assets and Liabilities = 349
• Consider this…How Do Banks Account for Loan Losses? = 323
• Consider this…When Is Credit-Risk Analysis "Discrimination"? = 331
• Case Study Credit Card Lending = 334
• Consider this…Teller Line or On-Line? = 340
• Moving from theory to practice…Scrambling for Lifeboats in Jakarta, The New York Times, 9／23／98 = 344
• CHAPTER 14 The Banking Industry = 351
• Origins of Today's Banking Industry = 352
• Who Regulates Banks = 353
• Chartering and Examination = 354
• Regulating Commercial Banks = 354
• Regulating Savings Institutions = 355
• Regulating Credit Unions = 355
• Why the Banking Industry Is Regulated = 357
• Bank Runs = 357
• The Cost of a Bank Run = 358
• Government Intervention in the Banking Industry = 359
• Lender of Last Resort = 360
• Federal Deposit Insurance = 361
• Restrictions on Banking Industry Competition = 365
• The Banking Industry in Other Countries = 374
• Japanese Banking = 374
• German Banking = 376
• Integration of European Banking = 377
• Review Questions = 380
• Analytical Problems, Data Question = 381
• Other times, other place…Lessons from the Free Banking Period = 353
• Consider this…Is Bank Consolidation Good for Business? = 366
• Case Study Is Banking a Declining Industry? = 372
• Moving from the theory to practice…Banks Better Buck Up, The Economist, 11／28／98 = 378
• CHAPTER 15 Banking Regulation : Crisis and Response = 382
• The Pattern of Regulation = 383
• Lender of Last Resort = 383
• The Great Depression = 384
• Success in Recent Years = 385
• Concluding Remarks = 387
• Anticompetitive Bank Regulation = 387
• The Credit Crunch of 1966 = 390
• Banks' Response = 390
• Regulatory Response = 392
• Concluding Remarks = 393
• The U.S. Deposit Insurance Crisis of the 1980s = 394
• Beginning of the Crisis : Worsening Conditions in S&Ls = 394
• Financial System Response = 394
• Regulatory Response : The S&L Bailout = 396
• The Widening Crisis : Commercial Banks = 398
• Options for Regulatory Reform = 401
• Current issues in Regulatory Reform = 404
• Concluding Remarks = 405
• Lessons from Banking Regulation for Other Institutions = 406
• Insurance Regulation = 406
• Pension Fund Regulation = 407
• Review Questions = 411
• Analytical Problems = 412
• Data Questions = 413
• Consider this…How Does a Lender of Last Resort Protect the Payments System? = 386
• Other times, other place…Money Market Mutual Funds : Japan and the United States = 389
• Consider this…How Severe Is the Deposit Insurance Crisis in Japan? = 400
• Moving from theory to practice…Crisis and Response in Japan, The Financial Times, 11／16／98 = 408
• CHAPTER 16 Banking in the International Economy = 414
• Organization of International Banks = 415
• Overseas Organization of U.S. Banks = 416
• Organization of Foreign Banks in the United States = 417
• Leaders in Global Banking = 418
• Managing Exchange Rate Risk = 418
• Services Provided by International Banks = 420
• Reducing Transactions Costs = 420
• Providing Information Services = 421
• The Rise of Euromarkets = 423
• Euromarket Customers = 425
• Loans in Euromarkets = 426
• Financial Regulation in International Banking = 427
• Capital Requirements = 428
• Deposit Insurance = 429
• Central Bank Intervention = 430
• International Coordination = 430
• Review Questions = 431
• Analytical Problems, Data Question = 434
• Consider this…Why Did Closing BCCI Takes So Long? = 419
• Consider this…Will Europe Kill the Eurobond? = 426
• Other times, other places…Do Sovereigns Default? = 428
• Moving from theory to practice…A Lack of Leadership? The Financial Times, 10／7／98 = 432
• PART Ⅴ The Money Supply Process and Monetary Policy = 435
• CHAPTER 17 The Money Supply Process = 436
• The Fed and the Monetary Base = 437
• The Fed's Liabilities = 438
• The Fed's Assets = 439
• How the Fed Changes the Monetary Base = 439
• Comparing Open Market Operations and Discount Loans = 444
• The Simple Deposit Multiplier = 445
• Multiple Deposit Expansion = 445
• Multiple Deposit Contraction = 451
• The Money Multiplier and Decisions of the Nonbank Public = 452
• Determinants of Portfolio Choice = 454
• Concluding Remarks = 456
• Bank Behavior : Excess Reserves and Discount Loans = 457
• Excess Reserves = 457
• Discount Loans = 458
• Deriving the Money Multiplier and the Money Supply = 459
• Review Questions = 467
• Analytical Problems = 470
• Data Question = 472
• Appendix : The Money Supply Process for M2 = 472
• Consider this…What Are the Origins of Multiple Deposit Expansion? = 447
• Other times, other places…The Money Multiplier and Money Supply During the Early 1930s = 462
• Case Study Using the Money Supply Equation to Predict Money Growth = 464
• Moving from theory to practice…The Fed, the Monetary Base, and Economic Recovery, The Financial Times, 11／18／98 = 468
• CHAPTER 18 Changes in the Monetary Base = 474
• Balance Sheet of the Federal Reserve System = 474
• The Fed's Assets = 475
• The Fed's Liabilities = 476
• Determining the Monetary Base = 477
• Changes in the Monetary Base = 478
• Determinants That Increase the Monetary Base = 479
• Determinants That Decrease the Monetary Base = 482
• Concluding Remarks = 483
• The Federal Budget Deficit and the Monetary Base = 484
• Alternative Strategies = 486
• The Government Budget Constraint and the Monetary Base = 488
• Review Questions, Analytical Problems = 492
• Data Questions = 493
• Using the news…Federal Reserve Data and Change in the Monetary Base = 480
• Other times, other places…Dealing with the Debt : The Treasury-Federal Reserve Accord = 485
• Moving from theory to practice…The Budger Deficit and the Monetary Base in Russia, The Financial Times, 12／9／98 = 490
• CHAPTER 19 Organization of Central Banks = 494
• Power Sharing in the Federal Reserve System = 495
• Creation of the System = 495
• Federal Reserve Banks = 496
• Member Banks = 498
• Board of Governors = 499
• Federal Open Market Committee = 499
• Power and Authority Within the Fed = 500
• How the Fed Operates = 502
• Handling External Pressure = 502
• Examples of Treasury-Fed Conflict = 504
• Factors That Motivate the Fed = 505
• Fed Independence = 506
• Central Bank Independence in Other Countries = 508
• Organization and Independence of the European Central Bank = 509
• Review Question = 511
• Analytical Problem = 514
• Data Questions = 515
• Considers this…Importance of Selecting a Fed Chairman = 503
• Other times, other places…Conflicts Between the Treasury and the Central Bank in Japan over Independence = 507
• Moving from theory to practice…A Team for the ECB, The Financial Times, 10／17-18／98 = 512
• CHAPTER 20 Monetary Policy Tools = 516
• Open Market Operations = 516
• Implementing Open Market Operations = 517
• Open Market Operations versus Other Policy Tools = 520
• Fed Watching and FOMC Directives = 520
• Open Market Operations in Other Countries = 522
• Discount Policy = 522
• Using the Discount Window = 523
• Policing the Discount Window = 523
• Benefits of Discount Policy = 525
• Drawbacks of Discount Policy as a Monetary Policy Tool = 526
• Discount Policy in Other Countries = 526
• Reserve Requirements = 527
• Changes in Reserve Requirements = 527
• Measurement and Compliance = 528
• Criticism of Reserve Requirements = 528
• Reserve Requirements in Other Countries = 531
• Fed Watching : Analyzing the Policy Tools = 531
• The Federal Funds Market = 532
• Open Market Operations = 533
• Changes in Discount Rates = 533
• Changes in Reserve Requirements = 533
• Other Disturbances of the Monetary Base = 536
• The Federal Funds Rate and Monetary Policy = 537
• Concluding Remarks = 540
• Review Questions = 541
• Analytical Problems = 542
• Data Questions = 543
• Consider this…A Day's Work at the Open Market Trading Desk = 519
• Consider this…How Do You Decode FOMC Directives? = 521
• Other times, other places…An Early Mistake in Setting Reserve Requirements = 530
• Moving from theory to practice…Fed Cuts Short-Term Rates, The New York Times, 11／18／98 = 538
• CHAPTER 21 The Conduct of Monetary Policy = 544
• Goals of Monetary Policy = 545
• Price Stability = 545
• High Employment = 545
• Economic Growth = 546
• Financial Market and Institution Stability = 546
• Interest Rate Stability = 547
• Foreign-Exchange Market Stability = 547
• Problems in Achieving Monetary Policy Goals = 547
• Using Targets to Meet Goals = 549
• Monetary Aggregates and Interest Rates as Targets = 550
• Selecting Intermediate Targets = 555
• Selecting Operating Targets = 555
• The Monetary Policy Record = 556
• Early Interest in Targets : 1951-1970 = 556
• Experimenting with Monetary Targets : 1970-1979 = 558
• De-emphasizing Interest Rates : 1979-1982 = 559
• Policy After 1982 : Back to Interest Rates = 560
• Increasing International Concerns : The 1980s and 1990s = 562
• Concluding Remarks = 562
• Reevaluating Fed Targeting Policy = 562
• Alternative Intermediate Targets = 563
• The Future of Targeting = 564
• International Comparison of Monetary Policy Conduct = 566
• Review Questions = 571
• Analytical Problems, Data Question = 572
• Other times, other places…Does the Conduct of Monetary Policy Respond to Political Pressures? = 561
• Case Study Is Inflation Targeting a Good Idea? = 565
• Moving from theory to practice…A 1990s Approach to Policy, The Financial Times, 7／22／98 = 568
• CHAPTER 22 The International Financial System and Monetary Policy = 573
• Foreign-Exchange Intervention and the Money Supply = 574
• Foreign-Exchange Intervention and the Exchange Rate = 576
• Unsterilized Intervention = 577
• Sterilized Intervention = 578
• Recent Fed Interventions = 579
• Balance of Payments = 581
• The Current Account = 582
• The Capital Account = 583
• The Official Settlements Balance = 584
• Relationships Among the Accounts = 585
• Exchange Rate Regimes and the International Financial System = 585
• Fixed Exchange Rates and the Gold Standard = 586
• Adapting Fixed Exchange Rates : The Bretton Woods System = 588
• Central Bank Intervention After Bretton Woods = 595
• Fixed Exchange Rates in Europe = 596
• How Successful Are Fixed Exchange Rates Likely to Be in the Long Run? = 604
• Review Questions = 605
• Analytical Problems = 606
• Data Question = 607
• Case Study Do Sterilized Interventions Affect the Exchange Rate? = 580
• Using the news…The U.S. Balance of Payments = 582
• Consider this…Are the IMF and the World Bank Obsolete? = 589
• Consider this…Does It Matter If the Dollar Is the Reserve Currency? = 595
• Other times, other places…Speculative Attack : 1990s Style = 598
• Case Study Financial Collapse in Mexico = 599
• Case Study Financial Collapse in Asia = 601
• Moving from theory to practice…Central Banks Send the Yen Soaring, The Wall Street Journal, 6／18／98 = 602
• PART Ⅵ The Financial System and the Macroeconomy = 609
• CHAPTER 23 The Demand for Money = 610
• Transactions Motives = 611
• Real Money Balances = 611
• Velocity and the Demand for Real Balances = 612
• Changes in Velocity over Time = 618
• Portfolio Allocation Motives = 618
• Motives for Holding Money : Keynes's Liquidity Preference Theory = 619
• Broader Portfolio Factors : Friedman's Money Demand Model = 621
• Comparing the Two Models : Keynes versus Friendman = 622
• Explaining Money Demand = 622
• The Money Demand Function = 623
• Measuring Money Demand = 624
• Review Questions, Analytical Problems = 629
• Data Question = 630
• Consider this…The Money Growth Slowdown in the Early 1990s : Was Velocity the Culprit? = 614
• Other times, other places…The Case of the Missing Money = 625
• Moving from theory to practice…Russia : A Money Misunderstanding Is the Root of Its Evil, The? Economist, 12／19／98 = 626
• CHAPTER 24 Linking the Financial System and the Economy : The IS-LM-FE Model = 631
• A Model for Goods and Asset Markets : Assumptions = 632
• The IS Curve = 633
• Saving, Investment, and Aggregate Demand = 633
• Determinants of National Saving = 634
• Determinants of National Investment = 635
• Constructing the IS Curve = 636
• The IS Curve for an Open Economy = 638
• Shifts of the IS Curve = 640
• Determining Output : The Full Employment Line = 642
• The LM Curve = 644
• Asset Market Equilibrium = 644
• Constructing the LM Curve = 645
• Shifts of the LM Curve = 649
• The Financial System and the Economy : The IS-LM-FE Model = 652
• Using the Model to Explain the Economy's Equilibrium = 653
• Restoring Equilibrium : Price-Level Adjustment = 654
• Money, Output, and Prices in the Long Run = 657
• Review Questions = 660
• Analytical Problems = 661
• Data Question = 663
• Appendix : Derivation of the IS Curve = 663
• Consider this…Are Savings Internationally Mobile? = 640
• Other times, other places…the Gulf War and "Confidence" = 642
• Moving from theory to practice…How Costly is Y2K?, The Wall Street Journal, 5／4／98 = 658
• CHAPTER 25 Aggregate Demand and Aggregate Supply = 667
• The Aggregate Demand Curve = 668
• Deriving the Aggregate Demand Curve = 668
• Shifts of the Aggregate Demand Curve = 670
• The Aggregate Supply Curve = 673
• Short-Run Aggregate Supply Curve = 673
• Long-Run Aggregate Supply Curve = 679
• Shifts in the Short-Run Aggregate Supply Curve = 680
• Shifts in the Long-Run Aggregate Supply Curve = 680
• Equilibrium in Aggregate Demand and Aggregate Supply = 663
• Short-Run Equilibrium = 683
• Long-Run Equilibrium = 684
• The Real Business Cycle View = 686
• Economic Fluctuations in the United States = 687
• Shocks to Aggregate Demand, 1964-1969 = 687
• Supply Shock, 1973-1975 = 688
• Credit Crunch and Aggregate Demand, 1990-1991 = 688
• Are Investment Incentives Inflationary? = 689
• Review Questions, Analytical Problems = 692
• Data Questions = 694
• Consider this…Do Tax Cuts Stimulate Aggregate Demand? = 671
• Other times, other place…Shock Therapy and Aggregate Supply in Poland = 681
• Consider this…Can Shifts in Aggregate Demand Affect Output in the Long Run? = 685
• Moving from theory to practice…Memo to Tokyo : Print Money, The Economist, 7／25／98 = 690
• CHAPTER 26 Money and Output in the Short Run = 695
• Tracking Money and Output Movements in the Short Run = 696
• The Real Business Cycle Model = 697
• Money and Output : The New Classical Model = 699
• Money and Output : The New Keynesian Model = 702
• Should Public Policy Stabilize Economic Fluctuations? = 705
• The Real Business Cycle and New Classical Views = 706
• The New Keynesian View = 707
• Explaining Events of the 1980s and 1990s = 710
• Effects of Policy Shifts in the Early 1980s = 710
• Effects of Policy Shifts in the Early 1990s = 712
• Concluding Remarks = 713
• Review Questions = 716
• Analytical Problems = 717
• Data Questions = 719
• Consider this…Can One Size Fit All in Europe? = 703
• Case Study How Does Money Affect Aggregate Demand in the New Keynesian View? = 704
• Other times, other places…Yasushi Mieno and the Stabilization Policy Debate in Japan = 709
• Moving from the theory to practice…Will the Fed Step on the Gas?, The Financial Times, 9／17／98 = 714
• CHAPTER 27 Information Problems and Channels for Monetary Policy = 720
• Macroeconomic Costs of Information Problems = 721
• Information Problems in Lending : Role of Financial Intermediaries = 722
• Information Problems in Lending : Role of Net Worth = 722
• Consequences of a Drop in Bank Lending = 723
• Consequences of a Fall in Borrowers' Net Worth = 725
• Financial Panics = 725
• Credit Controls and Credit Crunches = 726
• Expanded Channels for Monetary Policy = 728
• The Money Channel : Monetary Policy and Interest Rates = 729
• The Bank Lending Channel : Monetary Policy and Banks = 730
• Money Channel and Bank Lending Channel Predictions = 730
• The Balance Sheet Channel : Monetary Policy and Net Worth = 733
• Validity of the Bank Lending and Balance Sheet Channels = 736
• Implications for Public Policy = 739
• Review Questions = 743
• Analytical Problems, Data Question = 744
• Other times, other places…The Global Banking Crisis and the Great Depression = 727
• Consider this…Was There a Credit Crunch During the 1990-1991 Recession? = 738
• Moving from theory to practice…Japan Attacks Credit Crunch, The Wall Street Journal, 11／13／98 = 740
• CHAPTER 28 Inflation : Causes and Consequences = 745
• Explaining Price Level Changes = 746
• Causes of Price Level Changes = 747
• Causes of Price Level Fluctuations = 747
• Sustained Changes in the Price Level : Inflation = 750
• Costs of Inflation = 752
• Expected Inflation = 752
• Unexpected Inflation = 753
• Inflation Uncertainty = 754
• Inflation and Monetary Policy = 755
• Cost-Push Inflation = 755
• Demand-Pull Inflation = 756
• Costs of Reducing Inflation = 758
• New Classical Disinflation : Reducing Inflation Cold Turkey = 758
• New Keynesian Disinflation : Reducing Inflation Gradually = 759
• Central Bank Credibility = 761
• Strategies for Building Credibility = 762
• Rules versus Discretion = 765
• Price Controls and Credibility = 766
• Review Questions, Analytical Problems = 770
• Data Questions = 772
• Appendix : Inflation versus Unemployment : The Phillips Curve = 772
• Other times, other places…Central Bank Credibility in the United States and Japan = 761
• Consider this…Can Credibility Enhance Central Bank Flexibility? = 766
• Moving from theory to practice…Growth or Inflation?, The Wall Street Journal, 9／30／98 = 768
• Glossary = A-1
• Answer Section = A-16
• Index = A-37