Modern Financial Systems: Theory and Applications

Front Matter -- Theoretical Overview. Introduction -- Financial System Functions -- Financial System Governance -- Financial System Organization and Change -- Market versus Nonmarket Governance. Market Governance -- Intermediation and Internal Governance -- Terms of Deals -- Asset Prices and Market Relations. Pricing Stocks and Bonds -- Pricing Derivatives by Arbitrage -- Markets with Impediments to Arbitrage -- Applications: Market Activity. Securities, Bond and Mortgage Markets -- Markets for Trading Risks -- Exchange Rates and Markets -- Applications: Pooled Investments. Marketable Securities Portfolios -- Nonmarketable Securities Portfolios -- Applications: Intermediation. Principles of Intermediation -- Management Practice: Domestic Institutions -- International Banking and Banking Markets -- Industry Organization and Regulation. Banking Market Structure: Models and Empirical Research -- Bank Runs and Systemic Risk -- Financial Activity and Capital Formation -- Financial Regulation -- References -- Index. Theoretical overview -- Financial system functions -- Financial system governance -- Financial system organization and change -- Market versus nonmarket governance -- Market governance -- Intermediation and internal governance -- Terms of deals -- Asset prices and market relations -- Pricing stocks and bonds -- Pricing derivatives by arbitrage -- Markets with impediments to arbitrage -- Applications: market activity -- Securities, bond and mortgage markets -- Markets for trading risks -- Exchange rates and markets -- Applications: pooled investments -- Marketable securities portfolios -- Nonmarketable securities portfolios -- Applications: intermediation -- Principles of intermediation -- Management practice: domestic institutions -- International banking and banking markets -- Industry organization and regulation -- Banking market structure: models and empirical research -- Bank runs and systemic risk -- Financial activity and capital formation -- Financial regulation