Includes bibliographical references and index.

Contents: 1. Introduction -- Why study money, banking, and financial markets? -- An Overview of the financial system -- What is money? --
2. Financial markets -- The meaning of interest rates -- The Behavior of interest rates -- The Risk and term structure of interest rates -- The Stock market, the theory of rational expectations, and the efficient market hypothesis -- 3. Financial Institutions: An economic analysis of financial structure -- Banking and the management of financial institutions -- Economic analysis of banking regulation -- Banking industry: Structure and competition -- Financial crisis in advanced economies -- Financial crisis in emerging economies -- 4. Central banking and the conduct of monetary policy: Central banks: a global perspective -- Tools of monetary policy -- The conduct of monetary policy -- 5. International finance and monetary policy: The Foreign exchange market -- The International financial system - 6. Monetary theory: Quantity theory, inflation, and the demand for money -- The IS curve -- The monetary policy and aggregate demand curves -- a
aggregate demand and supply analysis -- Monetary policy theory -- The role of expectations in monetary policy -- Transmission mechanisms of monetary policy -- Chapters on the Web