Money, Banking,
and Financial Markets
A Modern Introduction to Macroeconomics
Co-Authored by
Dale K. Cline and Sandeep Mazumder
Connecting academic theories to industry practices
Innovative Approach To Macroeconomics and Money Creation
An introduction to money, banking, and financial markets, with a special emphasis on the importance of confidence and trust in the macroeconomic system.
Connecting academic theories to industry practices
Innovative Approach To Macroeconomics and Money Creation
An introduction to money, banking, and financial markets, with a special emphasis on the importance of confidence and trust in the macroeconomic system.
"The U.S. economy and financial institutions have a rich history to be studied, but it is important to know how it is currently operating and where it is going. This text thoroughly analyzes the modern structure of both the U.S. and world economies, while connecting academic theories to industry practices. I highly encourage anyone with an interest in macroeconomics give this book a read."
Arthur Laffer, American economist

About The Textbook

An Accessible Introductory Textbook for Courses on Money and Banking, Macroeconomics, Monetary Policy, and Financial Markets

This innovative text offers an introduction to money, banking, and financial markets, with a special emphasis on the importance of confidence and trust in the macroeconomic system. It also presents the theory of endogenous money creation, in contrast to the standard money multiplier and fractional reserve explanation found in other textbooks. The U.S. economy and financial institutions are used to explain the theoretical and practical framework, with international examples weaved in throughout the text. It covers key topics including monetary policy, fiscal policy, accounting principles, credit creation, central banks, and government treasuries. Additionally, the book considers the international economy, including exchange rates, the Eurozone, Chinese monetary policy, and reserve currencies. Taking a broad look at the financial system, it also looks at banking regulation, cryptocurrencies, real estate, and the oil and gold commodity markets. Students are supported with chapter objectives, key terms, and problems. A test bank is available for instructors. This is an accessible introductory textbook for courses on money and banking, macroeconomics, monetary policy, and financial markets.

Meet The Authors

Dale K. Cline

Dale K. Cline is a CPA in public practice, a CMA, a business owner, and an investor. He holds an undergraduate degree from Lenoir-Rhyne College and an MBA from Wake Forest University. While he has a wealth of business knowledge gained through his client advisory role, he learned much of what he knows about the economy through hands-on experience. Most recently, navigating his real estate investment and development business through the Great Recession provided him with unique insight into the way the banking system and the economy respond to stress. Viewing the meltdown from the dual perspectives of a CPA and a market participant prompted him to embark on a study of the lesser understood intricacies of the economy that culminated with the writing of this book.

Sandeep Mazumder

Sandeep Mazumder received his BA in Economics from St. Catharine’s College at Cambridge University. He earned his MA and PhD in Economics from Johns Hopkins University. His research and teaching interests include macroeconomics, monetary economics, international monetary economics, and time-series econometrics. Sandeep has focused much of his research on U.S. inflation dynamics and the Phillips Curve, and has published in journals such as the Brookings Papers on Economic Activity, Macroeconomic Dynamics, and the Journal of Money, Credit and Banking. He was a Professor in the Department of Economics at Wake Forest University for 12 years, where he also served as Department Chair for several years. Since 2021 he has been the William E. Crenshaw Dean of the Hankamer School of Business at Baylor University. In addition, he also is an Associate Editor of the Journal of Macroeconomics, a position he has held for several years.
Money, Banking, and Financial Markets Textbook Featured in Baylor Business Review
A (Not So) Textbook Case
Co-Authors, Dean Sandeep Mazumder and CPA Dale Cline, deliver a more approachable, practical economics textbook

When you think of engaging literature, a monetary economics textbook might not be the first item that comes to mind. However, Sandeep Mazumder, the William E. Crenshaw Endowed Dean of the Hankamer School of Business, is doing his part to change that.

Mazumder is the co-author of the textbook, Money, Banking and Financial Markets—A Modern Introduction to Macroeconomics, along with Dale Cline, a CPA in Hickory, North Carolina. The two began working on the project while Mazumder worked at Wake Forest University, with the goal to develop a more practical textbook on monetary economics.

“The typical textbook is teaching the content so the student can complete their assignment and do well on a test,” Mazumder said. “It is good and informative, but it is not as focused on the practical aspect of it.”

Cline brought years of industry experience to the table and a wealth of knowledge on how banks operated from an accounting perspective, Mazumder said. He also recognized that most textbooks were teaching a different operational style for banks and the Federal Reserve than what he experienced in his work.

Cline first reached out to one of Mazumder’s colleagues at Wake Forest to write a textbook on monetary economics. However, early on in the process, the fellow Economics professor quickly realized this was not his level of expertise and recommended Mazumder for the project.

Mazumder received a first version of the textbook, Banking on Confidence: A Guidebook to Financial Literacy, which featured precise content and a solid foundation, he said. He described it as a non-academic version, but was excited about how approachable it was.

“We wanted to write it such that a business school student—even if economics was not their field—could pick it up and truly understand it,” Mazumder said. “That made the textbook preparation process a bit different.”

The textbook is divided into two sections. Part I describes how the economy functions, with chapter titles like “Basic Accounting and Financial Statements” and “The Truth Behind Money Creation.” Part II features the applicability of theories within real estate, oil, gold and cryptocurrencies.

“This project was our way to try and bridge a gap between academia and industry,” Mazumder said.

Another unique selling point for this textbook is the authors’ stand on the fractional reserve theory of money creation. The theory suggests that money is created when banks begin loaning money with the deposits of their customers—however, this is not how most banks operate in modern times, Mazumder said.

Mazumder and Cline dispute the theory and endorse the credit creation theory of money, which suggests banks do not require deposits to give out loans. Instead, banks can present loans essentially out of thin air, as long as they are meeting Federal Reserve requirements. The pair are not the first to promote this theory over the fractional reserve theory, but they are on the leading front for textbook appearances.

Mazumder and Cline’s goal for this project was to create a textbook for everyone to read, especially those interested in working in the financial industry. In Mazumder’s opinion, this should be required reading for any MBA student.

“It is a shorter read than the average textbook and that is by design,” Mazumder said. “We are hoping that students in a class might read it but we are also hoping that non-students will read it as well.”

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