Includes index.

Contents: The Basics -- Introducing money, banking, and financial markets -- The Role of money in the macroeconomy -- Financial instruments, markets, and institutions -- Financial instruments and markets -- Interest rate measurement and behavior -- The Risk and term structure of interest rates -- The Structure and performance of securities markets -- The Pricing of risky financial assets -- Money and capital markets -- Demystifying derivatives -- Understanding foreign exchange -- Bank and other intermediaries -- The Nature of financial intermediation -- Depository financial institutions -- Nondepository financial institutions -- Financial system architecture -- Understanding financial contracts -- The Regulation of markets and institutions -- Financial system design -- The Art of central banking -- Who's in charge her? -- Bank reserves and the money supply -- The Instruments of central banking -- Understanding movements in bank reserves -- Monetary policy strategy -- Monetary theory -- The Classical foundations -- The Keynesian framework -- The ISLM world -- Money and economic stability in the ISLM world -- An Aggregate supply and and demand perspective on money and economic stability -- Rational expectations: theory and policy implications -- Empirical evidence on the effectiveness of monetary policy -- Grand finale -- Typing it all together.