Frederic S. Mishkin, Columbia University
Stanley G. Eakins, East Carolina University

Publisher: Pearson Higher Education
Copyright: 2009
Format: Paper; 752 pp

ISBN-10:	0321552113
ISBN-13:	9780321552112

Our Price: £48.99
Status: Instock
Published: 10 Apr 2008

• A unifying analytic framework uses a few core principles to organize students’ thinking, including: asymmetric information (agency problems), transaction costs, efficient markets and measurement, and management of risk.
• A practitioner’s approach to the study of markets and institutions allows for a strong emphasis on the application of concepts.
• Seven types of boxes enhance theoretical foundations:
• The Practicing Manager boxes, nearly twenty throughout the book, provide hands-on applications that emphasize the financial practitioner’s approach to real-world problems.
• The Wall Street Journal: Following the News and Case: The Wall Street Journal offer relevant news articles that encourage students to read a financial newspaper. Explanations and analysis are provided.
• Inside the Fed boxes provide details on the operation and structure of the Federal Reserve System.
• Global boxes include interesting material with an international focus.
• E-Finance boxes relate how changes in technology have affected financial markets and institutions. The placement of these boxes illustrates the impact technology has had in a broad range of areas in finance.
• Conflict of Interest boxes outline conflicts of interest in different financial services industries.
• Mini-Case boxes highlight dramatic historical episodes or apply theory to data.
• Cases demonstrate how the analysis in the book can be used to explain many important real-world situations.
• Study Guides are highlighted statements throughout the text that provide hints on how to think about or approach a topic.
• Summary Tables are useful study aids for reviewing material.
• Internet references in the margins and end-of-chapter Web exercises allow students to collect information from online sources to enhance their learning experience.
• The Companion Website includes numerous study tools for each chapter, such as animated graphs, Web links, mini-cases and solutions, Web exercises, quizzes, and glossary flashcards. A unique online reader, updated by Jim Eaton of Bridgewater College, includes up-to-date articles that are keyed to the textbook illustrates the economic forces behind the latest developments in financial markets. Each reading is prefaced by a brief content summary and discussion questions to encourage students to relate the articles to textbook material. A Web version of Chapter 26, Finance Companies, and nine extra appendices are also available. Visit the Companion Website for more information.

• Content is updated throughout to include advances in research and current events, including recent changes in the Fed.
• The already strong coverage of international and globalization issues is enhanced throughout, including new coverage of international bonds in Chapter 10.
• Coverage of the European Central Bank (ECB) as a rival to the U.S. Federal Reserve is enhanced in:
• Chapter 7 with new section called “The Structure and Independence of the European Central Bank.”
• Chapter 8 with a new section called “Monetary Policy Tools of the European Central Bank” and a discussion of the European Central Bank’s monetary policy strategy.
• Increased international perspectives and coverage of China includes:
• A new box on why the large U.S. current account deficit worries economists (Chapter 14).
• An exploration of how China has accumulated nearly $1 trillion of international reserves and has become one of the largest holders of U.S. Treasury securities (Chapter 14).
• A discussion of whether China is a counter-example to the importance of financial development for economic growth (Chapter 15).
• An examination of problems in the Chinese banking system (Chapter 20).
• A simplified supply-and-demand analysis for foreign exchange is provided in Chapters 13 and 14 because it is far easier for students to work with and provides the same results as the asset market approach (the interest-parity model).
• New material on current monetary policy in Chapter 8 includes:
• A new section on whether price stability should be the primary goal of monetary policy.
• An examination of whether hierarchical versus dual mandates are better for central banks.
• A new box on the Federal Reserve Chairman, Ben Bernanke, and his views on inflation targeting.
• A reorganization of Chapter 8, Conduct of Monetary Policy: Goals, Strategy, and Tactics makes it more coherent and more relevant to students. The chapter begins by explaining the modern theories of central banking, then explores the strategies and tactics employed by central banks, then moves to the strategy and current trends of monetary policy.