Introduction -- Why study money, banking, and financial markets -- An overview of the financial system -- What is money -- 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 -- Financial Institutions -- An economic analysis of financial structure -- Banking and the management of financial institutions -- Economic analysis of financial regulation -- Banking industry: structure and competition -- Financial crises in advanced economies -- Financial crises in emerging economies -- Central Baning and the Conduct of Monetary Policy -- Central banks: a global perspective -- The money supply process -- Tools of monetary policy -- The conduct of monetary policy : strategy and tactics -- International Finance and Monetary Policy -- The foreign exchange market -- The international financial system -- Monetary Theory -- Quantity theory, inflation, and the demand for money -- Aggregate demand and supply analysis -- Monetary policy theory -- Transmission mechanisms of monetary policy -- Glossary -- Credits -- Index.