Part I. Introduction. 1. Why Study Money, Banking, and Financial Markets? --- 2. An Overview of the Financial System --- 3. What Is Money? ---- Part II. Financial Markets. 4. Understanding 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 III. Financial Institutions. 8. An Economic Analysis of Financial Structure --- 9. Financial Crises in Advanced Economies --- 10. Financial Crises in Emerging Market Economies --- 11. Banking and the Management of Financial Institutions --- 12. Economic Analysis of Financial Regulation --- 13. Banking Industry: Structure and Competition ---- Part IV. Central Banking and the Conduct of Monetary Policy. 14. Central Banks: A Global Perspective --- 15. The Money Supply Process --- 16. The Tools of Monetary Policy --- 17. The Conduct of Monetary Policy: Strategy and Tactics ---- PART V. International Finance and Monetary Policy --- 18. The Foreign Exchange Market --- 19. The International Financial System ---- PART VI. 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.