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16: Financial Markets and Economic Activity

  • Page ID
    45491
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    Part 3: Financial Markets & Economic Activity

    8.Money, banking & money supply
    9.Financial markets, interest rates, foreign exchange rates and aggregate demand
    10.Central banking and monetary policy

    Three chapters in this part examine the financial sector of the economy and the important role it has in the determination of output and employment. They cover money, banks and banking, financial markets, asset prices and foreign exchange rates. When integrated, these parts of the economy provide the 'monetary transmission mechanism' and a framework for the design and implementation of central bank monetary policy. Moreover, the financial sector is the key to price level and inflation rate elasticities in the aggregate demand functions derived in later chapters.


    16: Financial Markets and Economic Activity is shared under a CC BY-NC-SA license and was authored, remixed, and/or curated by Douglas Curtis and Ian Irvine (Lyryx) .

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