IE&IFS: Concepts and Practice · Part B: Economic Concepts Related to Banking
Chapter 9: Theories of interest and business cycles
Why money earns interest, why long rates differ from short ones, and how the economy’s ups and downs reach a bank.
Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.
In this chapter
- 9.1Interest; the classical and loanable funds theoriesp. 115
- 9.2Liquidity preference; real and nominal ratesp. 116
- 9.3The term structure and the yield curvep. 117
- 9.4Business cycles: phases, indicators, theoriesp. 118
- 9.5Policy across the cycle, and banksp. 119
- Exam traps and quick checksp. 120
- Practice: 16 questions in three roundsp. 121
- Answers, with every wrong option explainedp. 123
- Make it stickp. 125
- Chapter 9 on one pagep. 126
Corrections and updates
None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.