Publisher's Synopsis
This text introduces the student to the role of money, financial markets, and financial institutions in the economy. It provides underlying economic explanations for why the financial system is organized as it is, and shows how the financial system and the economy are interconnected. Hubbard uses economic analysis to link the topics in order to focus on prediction as well as explanation.;In this edition, chapter six on interest rate determination has been rewritten and now presents a joint discussion of the bond market and loanable funds, including side by side diagrams which allow students to see differences and similarities clearly.
