The Monetary and Financial System

Book Contents Introduction vii One - Monetary policy 1 Two - Financial markets and the pricing of financial assets 43 Three - Analyses of exchange rates 81 Four - Analyses of interest rates 13I Five - Derivative instruments I75 Six - Financial intermediation 221 Seven - Portfolio theory and risk diversification 269 Eight - Regulation of financial institutions and financial markets 291 Index 341 Book Description Starting with a review of the properties and pricing of financial assets and the function of financial institutions, this new book deals in depth with the different financial markets and products. Full analysis of the UK money and capital markets is provided alongside the workings of the equity, fixed income, Eurocurrency and eurosecurity markets. Derivative products, hedging strategies and the role of clearing houses are then defined and analyzed. Market regulation is discussed and analysis provided of interest rates, exchange rates and corporate and personal finance