Introduction. Why Study Money, Banking, and Financial Markets? ; An Overview of the Financial System ; What Is Money? : A comparative approach to measuring money -- Financial Markets. Understanding 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 ; Financial Crises and the Subprime Meltdown ; Banking and the Management of Financial Institutions ; Economic Analysis of Financial Regulation ; Banking Industry : Structure and Competition -- Central Banking 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 : Exchange Rates and Applications ; The International Financial System -- Monetary Theory. The Demand for Money ; The ISLM Model ; Monetary and Fiscal Policy in the ISLM Model ; Aggregate Demand and Supply Analysis ; Transmission Mechanisms of Monetary Policy : The Evidence ; Money and Inflation ; Rational Expectations : Implications for Policy.