Modern Money and Banking [antikvár]

This third edition of Modern Money and Banking essentially is a new textbook. While we have sought to retain the broad organizational structure and specific strengths of the earlier editions, we have largely rewritten this text. We have taken on this task for two reasons. PRESENTATION OF MAJOR RECENT INSTITUTIONAL AND THEORETICAL DEVELOPMENTS First, much has happened in the area of money and banking in recent years. A nonexhaustive listing of recent institutional and theoretical developments that we have discussed in this edition follows. 1. The wave of deregulation of depository institutions, while beneficial to the economy in some ways, led to the near-collapse of the savings and loan industry. Simultaneously, commercial bank failures reached new heights. These events have led to more regulatory concern with establishing risk-based capital requirements and initiating deposit insurance reform. 2. Efforts to alter the foundations of depository institution regulation took place with passage of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. This act hastened the recognition of possible need for further regulatory reform, yet it has failed to be a panacea for the underlying problems that confront the American financial services industry. 3. A wave of banking mergers has begun and continues. 4. Payments system innovations have continued unabated, giving rise to a host of new regulatory issues. 5. In recent years the Federal Reserve has continued to reevaluate its monetary policy targets and procedures. Yet, many observers continue to question the Fed's management of monetary policy. 6. New classical macroeconomics has lost its intellectual monopoly on the concept of rational expectations. The hypothesis of rational expectations now is central to a variety of theories of the macroeconomic transmission of monetary policy. 7. There has been a redoubled effort by economists to explore the controversy over rules versus discretion in monetary policy. 8. The magnitudes of international trade flows relative to output in the United States have increased since the 1970s, and the United States and the rest of the world have witnessed a continuing integration of financial markets.