Money and class in america free download pdf

Compiled by Meredith Crowley. Mankiw, N. Mishkin, Frederic S. Ritter, Lawrence S. Silber and Gregory F. Stern, Gary H. Introduction: Topics A. Money: what it is and what it does B. Financial markets: what is traded, why it is traded, and who trades it 2. Principles of Finance: Topics A. Financial derivatives: how they work and what they do 3. Financial Institutions: Topics A.

Basic principles of bank management B. The evolution of commercial banks, their regulation, and their non-bank competitors 4. How the money supply is set, and how central banks control it B. Financial crises and central banks 5. Monetary Theory: Topics A. How the money supply affects aggregate output and prices B.

Money and its Functions A. Money: any asset widely accepted as payment for goods and services or in the repayment of debt B. Medium of exchange: facilitates trade ii. Unit of account iii. Store of value wealth : extremely liquid, but subject to inflation risk C. Evolution of the payments system i. Autarky ii. Barter iii. Commodity money iv. Paper currency: full-bodied and fiat v. Checks vi. Electronic money vii. Monetary Collapse 2.

M1 and M2: M2 is more general B. Comment: the different measures move together, but far from exactly. Main Function A. Transfer funds from lenders to borrowers: improves allocation of resources B. Direct finance: borrowers sell securities to lenders C. Indirect finance: funds go through a financial intermediary 2. Debt vs. Debt: a security with a specified payment schedule ii. Primary vs. Primary: new securities ii. Secondary: resale of existing securities C.

Exchange vs. Exchange: trade in a central location ii. Over-the-counter: dealers in many locations D. Money vs. Money markets: maturity of one year or less ii. Capital markets: maturity of more than one year 3. Financial Intermediaries A. Financial intermediary: an institution that borrows funds from one group of people in order to lend them to another B. Function: utilize economies of scale in: i. Contracting ii. Diversification iii. Creating liquidity iv. Adverse selection: i.

Problem with asymmetric information before transaction is made iii. Handled with screening D. Moral hazard: i. Risk that one party in a transaction will engage in an action harmful to the other party ii.

Problem with asymmetric information after transaction is made iii. Handled with monitoring E. Types of financial intermediaries i. Contractual savings: includes insurance companies and pension plans iii. Investment: includes mutual funds and finance companies 4.

Regulation A. Goals i. Transparent and efficient operation ii. Preventing financial panics B. Regulating direct markets i. Disclosure ii. Presumably he chose me as his confessor because we scarcely knew each other, much less belonged to the same social circles.

Amory at Yale had assumed that the world would entertain him as its guest. He had little reason to think otherwise. Certainly it never had occurred to him that he might be obliged to suffer the indignity of balancing his checkbook or looking at a bill. He had three children, but his wife was without substantial means of her own, and somehow he failed to generate enough money to carry him from one week to the next. He had been busy in the bar making lists of those expenses he deemed inescapable.

Handing me a sheet of legal foolscap, he said:. Amory was too desperate to fix his attention on small sums. In answer to a question about the club bills and the charitable donations, Amory pointed out that he allocated nothing for luxury or pleasure, no money for dinner parties, for paintings, for furniture, for a mistress, for psychiatrists, even for a week in Europe.

He had the look of a man who was being followed by the police. OR Books.