This text gives the reader a unique understanding of the dynamic and evolving nature of the financial system and how it is related to the aggregate economy. The text is written in an informal, conversational style, avoiding complex models and high-level math, making it perfect for the typical business business person who may or may not have a strong economics background.

About the Authors

Maureen Burton received a BA from the University of Missouri at Columbia in 1971, an MA from California State University, Fullerton, in 1979, and a Ph.D.from the University of California at Riverside in 1986. All were in economics. She taught at Chaffey College from 1984 to 1987 and at Cal Poly Pomona since 1987 where she is a full professor, has been Coordinator of the Graduate Program, and is currently chair of the Economics Department. In addition to other publications, she co-authored an introductory text Economics (Harper Collins, 1987) with S. Craig Justice. Her main areas of research include monetary theory and financial markets.

Born in Hamden, Connecticut, Ray Lombra received a BA in Economics from Providence College in 1967 and an MA and Ph.D. from Penn State University in 1971. He served as a senior staff economist at the Board of Governors of the Federal Reserve System from 1971-1977 and specialized in financial markets analysis and the formulation and implementation of monetary policy. He joined the faculty of Penn State University in 1977, and has taught money and banking at the undergraduate level and monetary theory and policy at the graduate level for 23 years. He is a winner of the College distinguished teaching award for innovations and instruction and is the author and editor of 5 books and over 80 scholarly publications. Articles on monetary policy, the determination of interest rates, stock prices, and exchange rates, financial innovation, globalization, and expectations formation have appeared in leading journals, including the Quarterly Journal of Economics, the Journal of Money, Credit and Banking, the Journal of Monetary Economics, and the Review of Economics and Statistics.

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