PART 1. INTRODUCTION 1. Why Study Money, Banking, and Financial Markets? 2. An Overview of the Financial System 3. What Is Money? PART 2. FINANCIAL MARKETS 4. The Meaning of Interest Rates 5. The Behavior of Interest Rates 6. The Risk and Term Structure of Interest Rates 7. The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis PART 3. FINANCIAL INSTITUTIONS 8. An Economic Analysis of Financial Structure 9. Banking and the Management of Financial Institutions 10. Economic Analysis of Financial Regulation 11. Banking Industry: Structure and Competition 12. Financial Crises in Advanced Economies 13. Financial Crises in Emerging Economies PART 4. CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY 14. Central Banks: A Global Perspective 15. The Money Supply Process 16. Tools of Monetary Policy 17. The Conduct of Monetary Policy: Strategy and Tactics PART 5. INTERNATIONAL FINANCE AND MONETARY POLICY 18. The Foreign Exchange Market 19. The International Financial System PART 6. MONETARY THEORY 20. Quantity Theory, Inflation, and the Demand for Money 21. The IS Curve 22. The Monetary Policy and Aggregate Demand Curves 23. Aggregate Demand and Supply Analysis 24. Monetary Policy Theory 25. The Role of Expectations in Monetary Policy 26. Transmission Mechanisms of Monetary Policy CHAPTERS ON THE WEB 27. The ISLM Model 28. Nonbank Finance 29. Financial Derivatives 30. Conflicts of Interest in the Financial Services Industry.