Professional Documents
Culture Documents
Why Study
Money, Banking,
and Financial
Markets?
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Financial Markets
Markets in which funds are transferred from
people who have an excess of available
funds to people who have a shortage of
funds
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Financial Crises
Financial crises are major disruptions in
financial markets that are characterized by
sharp declines in asset prices and the
failures of many financial and nonfinancial
firms.
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Sources: www.stls.frb.org/fred/data/gdp/gdpdef;
www.federalreserve.gov/releases/h6/hist/h6hist10.txt.
Copyright 2010 Pearson Addison-Wesley. All rights reserved.
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Source: www.gpoaccess.gov/usbudget/fy06/sheets/hist01z2.xls.
Copyright 2010 Pearson Addison-Wesley. All rights reserved.
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International Finance
Financial markets have become increasingly
integrated throughout the world.
The international financial system has
tremendous impact on domestic
economies:
How a countrys choice of exchange rate policy
affect its monetary policy?
How capital controls impact domestic financial
systems and therefore the performance of the
economy?
Which should be the role of international
financial institutions like the IMF?
Copyright 2010 Pearson Addison-Wesley. All rights reserved.
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