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Basic Monetary Economics

Author

Listed:
  • Farm, Ante

    (Swedish Institute for Social Research, Stockholm University)

Abstract

This is an introduction to money and the workings of the financial system. The creation of money is discussed in detail in Chapter 1. Chapter 2 explains how international payments can add to money creation but also generate a new type of money, usually called Eurodollars. Basic securities are defined and characterized in Chapter 3, namely bills, bonds and shares, but basic derivatives, like futures, swaps, and options, are also discussed. Chapter 4 deals with pricing by banks when extending loans, but also with price formation in markets for securities. Chapter 5 surveys possible threats to the financial system and discusses three different approaches to the problem of stabilizing it, namely crisis management, regulation, and structural reforms.

Suggested Citation

  • Farm, Ante, 2017. "Basic Monetary Economics," Working Paper Series 8/2017, Stockholm University, Swedish Institute for Social Research.
    • Handle: RePEc:hhs:sofiwp:2017_008
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Money; interest; securities; payments system; financial system;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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