The study of financial systems is worthwhile both for its own sake and because financial activity contributes to economic efficiency. And while financial systems exhibit wide-ranging differences in appearance, their structure and activities have greater commonality than is customarily realized.
With Modern Financial Systems, experienced financial expert Edwin Neave extensively develops these common themes. In it, he shares his insights with you, providing both comprehensive coverage of the complex and changing organization of financial systems, and the applications of theory to numerous practical situations. Divided into seven informative sections, Modern Financial Systems aims to strengthen your understanding of the economic forces shaping modern financial systems and how the markets and institutions in these systems interact with each other. Filled with in-depth insights and practical advice, this reliable resource develops a theoretical survey of financial system activity, along with illustrations of how the theory applies in practice. The applications sections illustrate how the principles affect financial transactions, as well as the institutions and markets that carry them out. The theoretical sections outline the economic principles underlying the organization of financial systems, and show how a system's component institutions and markets complement each other. Along the way, Modern Financial Systems:

• Explains both static financial system organization and the dynamics of financial system evolution
  
• Discusses financial governance mechanisms—markets, intermediaries, and internal finance
  
• Classifies currently available theoretical models and identifies where the theoretical models' predictions need to be qualified
  
• Examines the economics of intermediary operations and the main policy issues faced by intermediary management
  
  

In order to benefit from the information found throughout these pages, it doesn't matter whether you're an experienced financial veteran or student aspiring to enter this field. All you need to productively use the material here is a familiarity with the principal concepts underlying the practice of finance. Following a non-technical approach, Modern Financial Systems' focus on principles permits a more integrated analysis, and a more concise description, of financial systems than found elsewhere. With this book as your guide, you can gain a firm understanding of the foregoing theory of financial system organization and how the theory works in practice.