Includes index.

Contents: Fundamentals of monetary theory : Currency in an island economy -- The Monies of a modern economy -- The Demand for money -- Stock and bond valuation and the structure of interest rates -- Fundamentals of monetary and financial institutions: financial intermediation -- Financial institutions -- The Money supply process -- Institutions of monetary control: historical role of the federal reserve in the United States -- Equilibrium analysis : Full employment and monetary policy neutrality -- Economic fluctuations and monetary accomodation -- Stabilization policy when firms set prices in advance -- Stabilization policy in the presence of long-term nominal wage contracts -- Descriptive dynamics and inflation: A Critique of stabilization policy -- Monetary rules -- Inflation and seigniorage: what is optimal? -- The Mechanics of policy and policy-making : Optimal targeting and the response of financial markets -- Desk operations and the repo market for treasuries -- Time inconsistency and the credibility of monetary policy.