Money, Banking, and the Financial System, 5th edition

Published by Pearson (5 February 2026) © 2027

  • Glenn Hubbard Columbia University
  • Anthony Patrick O'Brien
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In this eTextbook — More ways to learn

  • More flexible. Start learning right away, on any device.
  • More supportive. Get AI explanations and practice questions (select titles).
  • More interactive. Bring learning to life with audio, videos, and diagrams.
  • More memorable. Make concepts stick with highlights, search, notes, and flashcards.
  • More understandable. Translate text into 100+ languages with one tap.
 
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In this eTextbook — More ways to learn

  • More flexible. Start learning right away, on any device.
  • More supportive. Get AI explanations and practice questions (select titles).
  • More interactive. Bring learning to life with audio, videos, and diagrams.
  • More memorable. Make concepts stick with highlights, search, notes, and flashcards.
  • More understandable. Translate text into 100+ languages with one tap.
Products list

In this eTextbook — More ways to learn

  • More flexible. Start learning right away, on any device.
  • More supportive. Get AI explanations and practice questions (select titles).
  • More interactive. Bring learning to life with audio, videos, and diagrams.
  • More memorable. Make concepts stick with highlights, search, notes, and flashcards.
  • More understandable. Translate text into 100+ languages with one tap.

Title overview

Money, Banking, and The Financial System is designed to build excitement around financial markets, how they’re structured and how they connect to the broader economy. Renowned authors Glenn Hubbard and Tony O’Brien simplify financial developments over the past two decades. They examine changes in monetary policy, borrowing and lending, bank operations, rate fluctuations and regulatory responses.

The 5th Edition analyzes financial events of recent years, such as the pandemic-spurred financial crisis, the highest inflation rates since the 1980s and the highest tariff rates since the 1930s. Supporting cases, exercises, solved problems and review questions were all revised to reflect the modernized content.

Table of contents

  1. Introducing Money and the Financial System
  2. Money and the Payments System
  3. Interest Rates and Rates of Return
  4. Determining Interest Rates
  5. The Risk Structure and Term Structure of Interest Rates
  6. The Stock Market, Information, and Financial Market Efficiency
  7. Derivatives and Derivative Markets
  8. The Market for Foreign Exchange
  9. Transactions Costs, Asymmetric Information, and the Structure of the Financial System
  10. The Economics of Banking
  11. Beyond Commercial Banks: Shadow Banks and Nonbank Financial Institutions
  12. Financial Crises and Financial Regulation
  13. The Federal Reserve and Central Banking
  14. The Federal Reserve’s Balance Sheet and the Money Supply Process
  15. Monetary Policy
  16. The International Financial System and Monetary Policy
  17. Monetary Theory I: The Aggregate Demand and Aggregate Supply Model
  18. Monetary Theory II: The IS-MP Model

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