Notes on Mishkin Chapter 5 (Econ 353, Tesfatsion)

Lecture Notes on Mishkin Chapter 5 (pp. 91-108 only)
"The Behavior of Interest Rates"
Econ 353: Money, Banking, and Financial Institutions

For discussion and illustrations of the following basic concepts and key issues, see the PPT Slides for Mishkin Chapter 5 (785K)

Factors causing movements along the bond demand curve
Factors causing the bond demand curve to shift
Factors causing movements along the bond supply curve
Factors causing the bond supply curve to shift
Predicted movements in the price of bonds in response to an excess demand or supply of bonds
Predicted effects on bond market equilibrium of changes in various factors such as wealth, expected interest rates, expected inflation, and the government deficit
In what sense is the demand and supply analysis in Mishkin (Chapter 5) partial equilibrium in nature? In particular, why must his caution "all other economic variables are held constant" given at the beginning of Chapter 5 always be kept in mind when considering the practical application of the predictions he obtains from his demand and supply analysis of the bond market?