New to this Edition
NEW, EXTENSIVE DESCRIPTION OF CRYPTOCURRENCIES EXAMINES POSITIVES AND NEGATIVES ABOUT THIS ISSUE. New coverage within Chapter 2's discussion of the types of money explores cryptocurrencies. Most readers have heard varying opinions about cryptocurrencies as "the next great thing" or as a tool "used only for nefarious purposes." This edition examines both sides of the issue and even introduces the consideration that the biggest contribution of cryptocurrencies may be the blockchain technology that underlies them.
ENTIRELY NEW SECTION MORE CLOSELY EXAMINES THE TECH BUBBLE AND SUBPRIME CRISIS IN A HISTORICAL CONTEXT. This new discussion in Chapter 5 places these two asset bubbles into proper historical context, causing readers to contemplate how the “this time is different” attitude can be a harbinger of coming events. The chapter also streamlines the discussion of the Panic of 1907. This important chapter allows you, as an instructor, to take a stronger multi-disciplinary approach to the course material, if desired.
NEW SECTION ON MODERN BUSINESS CYCLE MODELS CLARIFIES TOPICS OFTEN ONLY ADDRESSED IN GRADUATE STUDIES. This non-technical discussion of Real Business Cycle models, as well as Dynamic Stochastic General Equilibrium Models (DSGEs), in Chapter 6 helps undergraduate students understand why central banks and other policymakers were slow to respond to the subprime crisis. New content also examines the debate over the future use of the DSGE framework and offers insight into what future business cycle models that incorporate financial markets might look like.
EXPANDED DISCUSSION OF THE FEDERAL RESERVE’S STRUCTURE AND EXTENDED DEBATE OVER THE FED’S ROLE IN CONSUMER PROTECTION ENCOURAGES CLASSROOM DISCUSSIONS. Students become engaged as they debate these current, relevant issues. Chapter 8 also now discusses the Bank of Japan’s zero interest rate policy as well the Bank of England and European Central Bank’s new quantitative easing (QE) policies. This international focus can stand alone or serve as an introductory tool if you want to discuss current global financial markets issues in more detail.
NEW CONTENT NOW ADDRESSES QUANTITATIVE TIGHTENING IN CHAPTER 9. This new discussion highlights issues students may be hearing about in the press or in the professional world. In addition to addressing current issues, discussions like this prepare students to offer meaningful discussions during future job interviews. Expanded coverage in this chapter also details the European Central Bank’s new monetary policy tools, including TLTRO I and II.
NEW DISCUSSION OF COMMERCIAL BANKS’ BALANCE SHEETS IS STREAMLINED WITH EXPANDED EMPHASIS ON CRITICAL TOPICS. This streamlined, yet further developed, coverage in Chapter 12 helps students better understand the function and importance of balance sheets in commercial banks today.
ADDITIONAL DISCUSSION HIGHLIGHTS CONSUMER CREDIT RISK FACING TODAY'S DEPOSITORY INSTITUTIONS. Students gain a better understanding of the credit risks that depository institutions face in Chapter 13. A new section focuses on the variety of ways financial institutions can reduce credit risk and liquidity risk.
THE LATEST UPDATES ADDRESS REFORMS AT THE INTERNATIONAL MONETARY FUND (IMF) AND THE WORLD BANK. New discussion within Chapter 20 thoroughly explores the status of reforms at these United National institutions -- as the IMF works to stabilize the international monetary system and monitor the world's currencies, and the World Bank Group works with developing countries with the goal of reducing poverty and increasing shared prosperity.
NEW AND UPDATED CONTENT CLOSELY EXAMINES TODAY'S CREDIT UNIONS IN CHAPTER 21. Students review the latest information about credit unions with expanded discussion of the ongoing debate over credit unions lending to businesses.
EXPANDED, UPDATED DISCUSSION (CH. 24) REVIEWS THE "REVOLVING DOOR" BETWEEN FINANCIAL MARKETS AND REGULATORS IN WASHINGTON. You can even present the political science aspects of this issue for a stronger multi-disciplinary approach. New content also examines Jay Powell’s background before becoming Federal Reserve Chair. This discussion links to the concepts of central banks and even the evolution of financial markets covered in early chapters. In addition, expanded discussion explores the controversy surrounding private equity carried interest being taxed at the capital gains level.
NEW "IN THE NEWS…" SEGMENTS IN EVERY CHAPTER CONNECT CHAPTER CONCEPTS TO ISSUES IN THE POPULAR AND BUSINESS PRESS. Students clearly see the connection between concepts covered in your course and issues happening in today's markets and firms. These segments are followed by open-ended questions for students to contemplate. You can use these to prompt classroom discussions and encourage students to refer to these issues during job interviews to demonstrate their understanding of current market events.
THE LATEST UPDATED DATA IN VIRTUALLY EVERY CHAPTER DEMONSTRATES THE IMPACT OF TOPICS ON THE WORLD TODAY. This up-to-date approach moves well beyond a study of "moving lines back and forth" to demonstrate how these critical topics that students are studying are moving markets and impacting the lives of people in all parts of the world