Money and Banking

(3 reviews)

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Robert Wright, NYU

Pub Date: 2012

ISBN 13: 978-0-9820430-8-0

Publisher: Saylor Foundation

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Reviewed by Mahmoud Al-Odeh, Assistant Professor, Bemidji State University, on 6/11/2015.

This is a good textbook that covers a wide range of topics in the economic analysis theory and application. The book consists of 24 chapters that … read more

 

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Reviewed by Wendy Usrey, Faculty Instructor, Colorado State University, on 12/6/2016.

This book is fantastic in terms of the breadth of finance, money and banking topics. I have found that most money and banking texts have some of the … read more

 

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Reviewed by Laura Carolevschi, Assistant Professor, Winona State University, on 6/21/2017.

In its 26 chapters, the textbook covers a wide array of money and banking topics, as well as macroeconomics topics with monetary policy applications. … read more

 

Table of Contents

  • Chapter 1: Money, Banking, and Your World
  • Chapter 2: The Financial System
  • Chapter 3: Money
  • Chapter 4: Interest Rates
  • Chapter 5: The Economics of Interest-Rate Fluctuations
  • Chapter 6: The Economics of Interest-Rate Spreads and Yield Curves
  • Chapter 7: Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities
  • Chapter 8: Financial Structure, Transaction Costs, and Asymmetric Information
  • Chapter 9: Bank Management
  • Chapter 10: Innovation and Structure in Banking and Finance
  • Chapter 11: The Economics of Financial Regulation
  • Chapter 12: Financial Derivatives
  • Chapter 13: Financial Crises: Causes and Consequences
  • Chapter 14: Central Bank Form and Function
  • Chapter 15: The Money Supply Process and the Money Multipliers
  • Chapter 16: Monetary Policy Tools
  • Chapter 17: Monetary Policy Targets and Goals
  • Chapter 18: Foreign Exchange
  • Chapter 19: International Monetary Regimes
  • Chapter 20: Money Demand
  • Chapter 21: IS-LM
  • Chapter 22: IS-LM in Action
  • Chapter 23: Aggregate Supply and Demand and the Growth Diamond
  • Chapter 24: Monetary Policy Transmission Mechanisms
  • Chapter 25: Inflation and Money
  • Chapter 26: Rational Expectations Redux: Monetary Policy Implications

About the Book

The financial crisis of 2007-8 has already revolutionized institutions, markets, and regulation. Wright's Money and Banking V 2.0 captures those revolutionary changes and packages them in a way that engages undergraduates enrolled in Money and Banking and Financial Institutions and Markets courses.

Minimal mathematics, accessible language, and a student-oriented tone ease readers into complex subjects like money, interest rates, banking, asymmetric information, financial crises and regulation, monetary policy, monetary theory, and other standard topics. Numerous short cases, called "Stop and Think" boxes, promote internalization over memorization. Exercise drills ensure basic skills competency where appropriate. Short, snappy sections that begin with a framing question enhance readability and encourage assignment completion.

The 2.0 version of this text boasts substantive revisions (additions, deletions, rearrangements) of almost every chapter based on the suggestions of many Money and Banking instructors.

Some specific highlights are: Chapter 11 now contains enhanced descriptions of recent regulatory changes, including Dodd-Frank, Chapter 12 is an entirely new chapter on derivatives covering forwards, futures, options, and swaps that also including comprehensive treatment of the causes and consequences of financial crises, and Chapter 14 has updated discussions of the Federal Reserve’s monetary policy tools, including paying interest on reserves, and the structure and leadership of the European Central Bank.

Recent financial turmoil has increased student interest in the financial system but simultaneously threatens to create false impressions and negative attitudes. This up-to-date text by a dynamic, young author encourages students to critique the financial system without rejecting its many positive attributes. Peruse the book online now to see for yourself if this book fits the needs of your course and students.

This textbook has been used in classes at: Augustana College, Central Michigan University, Florida State University, Lyndon State College, Princeton University, Rutgers University, University of Southern Maine, Western Oregon University., Westminster College.

About the Contributors

Author(s)

Robert E. Wright was born in 1969 in Rochester, New York, to two self-proclaimed factory rats.

"I recall little of my earliest days except the Great Inflation and oil embargo, which stretched the family budget past the breaking point. The recession in the early 1980s also injured my family’s material welfare and was seared into my brain. My only vivid, noneconomic memories are of the Planet of the Apes films (all five of them!) and the 1972 Olympics massacre in Munich; my very young mind conflated the two because of the aural similarity of the words gorilla and guerilla.

After taking degrees in history from Buffalo State College (B.A., 1990) and the University of Buffalo (M.A., 1994; Ph.D., 1997), I began teaching a variety of courses in business, economics, evolutionary psychology, finance, history, and sociology at Temple University, the University of Virginia, sundry liberal arts colleges, New York University’s Stern School of Business, and, since 2009, Augustana College (the one in South Dakota, not the one in Illinois), where I am additionally the director of the Thomas Willing Institute for the Study of Financial Markets, Institutions, and Regulations. I’ve also been an active researcher, editing, authoring, and coauthoring books about the development of the U.S. financial system (Origins of Commercial Banking, Hamilton Unbound, Wealth of Nations Rediscovered, The First Wall Street, Financial Founding Fathers, One Nation Under Debt), construction economics (Broken Buildings, Busted Budgets), life insurance (Mutually Beneficial), publishing (Knowledge for Generations), bailouts (Bailouts), public policy (Fubarnomics), and investments (The Wall Street Journal Guide to the 50 Economics Indicators That Really Matter). Due to my unique historical perspective on public policies and the financial system, I’ve also become something of a media maven, showing up on NPR and other talk radio stations, as well as various television programs, and getting quoted in major newspapers like the Wall Street Journal, New York Times, Chicago Tribune, and the Los Angeles Times. I publish op-eds and make regular public speaking appearances nationally and, increasingly, internationally. I am also active in the Museum of American Finance and sit on the editorial board of its magazine, Financial History.

I wrote this textbook because I strongly believe in the merits of financial literacy for all. Our financial system struggles sometimes in part because so many people remain feckless financially. My hope is that people who read this book carefully, dutifully complete the exercises, and attend class regularly will be able to follow the financial news and even critique it when necessary. I also hope they will make informed choices in their own financial lives."