                                                                                                                                                                                 Money, Banl{ing & Financial Markets                                                                              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                                                                                                                                                           CHAPTER                                                                                     APPENDIX TO CHAPTER                     CHAPTER 2                                                                                                             3                                 [...]... Origins of the Federal Reserve System Inside the Fed 320 32 0 The Political Genius of the Founders of the Federal Reserve System Structure of the Federal Reserve System 322 Federal Reserve Banks Inside the Fed 323 The Special Role of the Federal Reserve Bank of New York Member Banks The Role of the Research Staf f 326 32 7 32H Federal Open Markel Commiuee (FOMC) The FOMC Meeting Inside the Fed... chapter on the conflicts of interest in the financial industry The Business School Edition omits the Lwo ISL\!f chapters and the chapter on the implications of rational expectations for policy For those professors whose courses have less of an emphasis on monetary theory., The Economics of Money, Banhing, and Financial Markets, Business School Edition, will more closely fir your needs for those professors... flicts of interest The MyEconLab course for each edition provides the omitted chapters making them readily available for those who do wish to utilize them in their courses The Subprime Financial Crisis The subprime financial crisis has led to a series of events that have completely changed the structure of the financial system and the way central banks operate This has required a rewriting of almost the. .. reflect the new financial world that we have entered, we first discuss the financial industry as a whole and then look at the specifics of how the now more broadly based banking industry is structured To do this, I have placed the chapter on regulation before the chapter on the structure of the banking industry and have rewritten it to focus less on bank regulation and more on regulation of the overall financial. .. W hat Do These Colors Mean at the Fed? 32 9 Why the Chairman of the Board of Governors Really Runs the Show 330 How Independent is the Fedl Inside the Fed 32 4 325 Board of Governors of the Federal Reserve System Inside the Fed 3 1 2 How Bernanke's Style Dif ers f f rom Greenspan's Structure and Independence of the European Central Bank 330 331 333 Differences Between the European System of Cemral... Theory of Rational Expectations Formal Statement of the Theory 154 Rationale Behind the Theory 154 155 Implications of rhe Theory The Ef icient Market Hypothesis: Rational Expectations in Financial Markets f 155 Rationale Behind the Hypothesis 157 Stronger Version of the Efficient "t-.,farkct Hypothesis 158 Application Practical Guide to Investing in the Stock Market 158 How ValuableAre Published Reports... Act of 1994 300 \Vhat \Vill rhe Structure of the U.S Banking Industry Look Like 300 in rhc Fmure? Global Comparison of Banking Structure in the United States and Abroad 30 1 Arc Bank Consolidation and Nationwide Banking Good Things? Separation of the Banking and Other Financial Ser\ice Industries Erosion of Glass-Sreaga11 30 1 302 302 The Gramm-Leach-Bliley Financial Services ModernizationAct of. .. chapter, a rewrite of one whole chapter, and the addition of many timely new sections, applications, and boxes throughout the rest of the book New Chapter 9: Financial Crises and the Subprime Meltdown With the coming of the subprime financial crisis, a money and banking course would not be complete without an extensive analysis of why financial crises like the subprime crisis occur and why they have such... Analysis of Financial Regulation In past editions, the chapter on the structure of the banking industry was followed by the chapter on banking regulation This ordering no longer makes sense in the after­ math of the sub prime financial crisis, because nonbank financial institutions like invest­ ment banks have for the most part disappeared as free-standing institutions and are now part of banking organizations... the Theory of Rational Expectations, and the Efficient Market Hypothesis 147 Computing the Price of Common Stock 147 The One-Period Valuation Model 14H 149 The Generalized Dividend Valuation Model 149 The Gordon Growth Model How the Market Sets Stock Prices 150 Application Monetary Policy and Stock Prices 151 Application The Subprime Financial Crisis and the Stock Market 152 152 The Theory of .           Money, Banl{ing & Financial Markets       