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Economics of Money, Banking, and Financial Markets, The, 13th edition

Published by Pearson (January 4, 2021) © 2022

  • Frederic S Mishkin Columbia University

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For money and banking, and general economics courses.

A unified framework for understanding financial markets

The Economics of Money, Banking and Financial Markets brings a fresh perspective to today's major questions surrounding financial policy. Influenced by his term as Governor of the Federal Reserve, Frederic Mishkin provides a unique viewpoint and informed insight into the monetary policy process, the regulation and supervision of the financial system, and the internationalization of financial markets.

With new, real-world examples, the 13th Edition helps students apply these financial models, terms and equations to decisions that affect both their personal and professional lives.

Hallmark features of this title

An intentional structure

  • A unifying framework uses a few basic economic principles to help students develop a disciplined, logical way of analyzing the structure of financial markets and understanding foreign exchange changes, financial institution management, and the role of monetary policy in the economy.
  • A real-world approach uses actual data in any analysis so students can see it in action.

A learner focus

  • Graphs and Mini-Lecture Videos help students understand the interrelationships among the plotted variables and the principles of analysis.
  • Inside the Fed boxes give students a feel for the operation and structure of the Federal Reserve.
  • 600+ end-of-chapter questions and applied problems help students learn the material by applying concepts.

New and updated features of this title

Timely coverage of important economic events

  • NEW: Application examines the coronavirus stock market crash of 2020 (Ch. 7) and the likelihood that the pandemic could lead to another financial crisis (Ch. 12).
  • NEW: Application looks at the effects of quantitative easing on the money supply during the coronavirus crisis (Ch. 14).
  • UPDATED: Section on nonconventional monetary policy tools and quantitative easing discusses how they were used during the coronavirus pandemic (Ch. 15).
  • NEW: Application analyzes the effects of Trump tax cuts on bond interest rates (Ch. 6).
  • NEW: Inside the Fed box looks at the independence of the Fed (Ch. 13) and the modification of inflation targeting as a monetary policy tool.

Emphasis on career skills development

  • UPDATED: Following the Financial News boxes introduce students to relevant news articles and data that are reported on daily in the press, and teach students how to interpret this data.

Features of Pearson eText for the 13th Edition

  • UPDATED: Real-Time Data figures pull real data from FRED to help explain economic concepts and events, such as the COVID-19 pandemic. This shows students where and how they can access this information when they need to, now and throughout their career.
  • Videos and animations explain key concepts in money and banking and bring them to life, helping students place what they're reading into context.

Features of MyLab Economics for the 13th Edition

  • Real-Time Data Analysis Exercises use up-to-the-minute, real-time macroeconomic data from the Federal Reserve Bank of St. Louis's FREDâ„¢ site, to test students' knowledge.
  • Homework and practice exercises in MyLab are correlated to the exercises in the text, reflecting each author's approach and learning style. They regenerate algorithmically to give students unlimited opportunity for practice and mastery.
  • Learning aids, such as Help Me Solve This, provide extra help for students at the point-of-use.
  • Gradescope is an efficient grading platform that streamlines the way you create and grade online exams, homework and projects.
  • With LMS Integration, you can link your MyLab course from Blackboard Learnâ„¢, Brightspace® by D2L®, Canvasâ„¢, or Moodle®.

PART 1: INTRODUCTION

  1. Why Study Money, Banking, and Financial Markets?
  2. An Overview of the Financial System
  3. What Is Money?

PART 2: FINANCIAL MARKETS

  1. The Meaning of Interest Rates
  2. The Behavior of Interest Rates
  3. The Risk and Term Structure of Interest Rates
  4. The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

PART 3: FINANCIAL INSTITUTIONS

  1. An Economic Analysis of Financial Structure
  2. Banking and the Management of Financial Institutions
  3. Economic Analysis of Financial Regulation
  4. Banking Industry: Structure and Competition
  5. Financial Crises

PART 4: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY

  1. Central Banks and the Federal Reserve System
  2. The Money Supply Process
  3. Tools of Monetary Policy
  4. The Conduct of Monetary Policy: Strategy and Tactics

PART 5: INTERNATIONAL FINANCE AND MONETARY POLICY

  1. The Foreign Exchange Market
  2. The International Financial System

PART 6: MONETARY THEORY

  1. Quantity Theory, Inflation, and the Demand for Money
  2. The IS Curve
  3. The Monetary Policy and Aggregate Demand Curves
  4. Aggregate Demand and Supply Analysis
  5. Monetary Policy Theory
  6. The Role of Expectations in Monetary Policy
  7. Transmission Mechanisms of Monetary Policy

About our author

Frederic S. Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University. He is also a Research Associate at the National Bureau of Economic Research, co-director of the US Monetary Policy Forum, a member of the Squam Lake Working Group on Financial Reform, and past president of the Eastern Economics Association. Since receiving his PhD from the Massachusetts Institute of Technology in 1976, he has taught at the University of Chicago, Northwestern University, Princeton University, and Columbia. He has also received an honorary professorship from the People’s (Renmin) University of China. From 1994 to 1997, he was Executive Vice President and Director of Research at the Federal Reserve Bank of New York and an associate economist of the Federal Open Market Committee of the Federal Reserve System. From September 2006 to August 2008, he was a member (governor) of the Board of Governors of the Federal Reserve System.

Professor Mishkin’s research focuses on monetary policy and its impact on financial markets and the aggregate economy. He is the author of more than 20 books, including Macroeconomics: Policy and Practice, 2nd Edition (Pearson, 2015); Financial Markets and Institutions, 9th Edition (Pearson, 2018); Monetary Policy Strategy (MIT Press, 2007); The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich (Princeton University Press, 2006); Inflation Targeting: Lessons from the International Experience (Princeton University Press, 1999); Money, Interest Rates, and Inflation (Edward Elgar, 1993); and A Rational Expectations Approach to Macroeconometrics: Testing Policy Ineffectiveness and Efficient Markets Models (University of Chicago Press, 1983). In addition, he has published more than 200 articles in such journals as American Economic Review, Journal of Political Economy, Econometrica, Quarterly Journal of Economics, Journal of Finance, and Journal of Monetary Economics.

Professor Mishkin has served on the editorial board of American Economic Review and has been an associate editor at Journal of Business and Economic Statistics, Journal of Applied Econometrics, Journal of Economic Perspectives, Journal of International Money and Finance, and Journal of Money, Credit and Banking; he also served as the editor of the Federal Reserve Bank of New York’s Economic Policy Review. He is currently an associate editor (member of the editorial board) at 6 academic journals, including International Finance; Finance India; Review of Development Finance; Borsa Economic Review; PSU Research Review and Emerging Markets, and Finance and Trade. He has been a consultant to the Board of Governors of the Federal Reserve System, the World Bank, and the International Monetary Fund, as well as to many central banks throughout the world. He was also a member of the International Advisory Board to the Financial Supervisory Service of South Korea and an advisor to the Institute for Monetary and Economic Research at the Bank of Korea. Professor Mishkin was a Senior Fellow at the Federal Deposit Insurance Corporation’s Center for Banking Research and was an academic consultant to and serves on the Economic Advisory Panel and Monetary Advisory Panel of the Federal Reserve Bank of New York.

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