The Fundamentals of Money and Financial Systems
- 2h 12m
- Shahdad Naghshpour
- Business Expert Press
- 2013
Understanding the role of money in the economy is essential for comprehending the complex intricacies of modern economics. Money and its value is an essential medium through which government policies are implemented to change the course of the economy. However, before attempting to comprehend these complex mechanisms it is necessary to understand the role of money.
This book defines money and its value. It clarifies, in simple and clear terms, why money is demanded, what factors affect the demand for money, and what the different theories are that explain why people demand money. Next, it explains how money is created, which involves more than just printing money. Finally, the text addresses financial institutions, which are the brokers of the monetary system. The role financial institutions play in impacting the supply of the money and how they facilitate the flow of goods and services through different sectors are discussed. The discussion is focused on the theory of equilibrium in the market for goods, services and the money market.
About the Author
Dr. Shahdad Naghshpour is a full professor at the International Policy and Development Doctoral Program at the University of Southern Mississippi. He has 34 years of teaching mathematics and statistics to non majors with diverse backgrounds. He is the recipient of the Excellence in Teaching award from College of Business Administration at USM. Dr. Naghshpour has published over 60 articles and books and is the recipient of the Distinguished Professorship Award in Research from the University of Southern Mississippi Gulf Coast.
In this Book
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The Fundamentals of Money and Financial Systems
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Abstract
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Introduction
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The Quantity Theory
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Transaction Theory of Demand for Money
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Portfolio Balances
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Money Theories and Estimation
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Federal Reserve System
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Forms of Money in the Economy
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Rate of Return and Interest Rate
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Determining the Interest Rate
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The Role of Risk on the Interest Rate
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Components of the Financial System
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Equilibrium in the Goods Market—IS Model
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Equilibrium in the Financial System—LM Model
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Conclusion
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Notes
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References
