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. Banking and the Management of Financial Institutions --- 10. Banking Industry: Structure and Competition --- 11. Economic Analysis of Banking Regulation --- 12. Nonbank Finance --- 13. Financial Derivatives ---- Part IV. Central Banking and the Conduct of Monetary Policy. 14. Structure of Central Banks and the Federal Reserve System --- 15. Multiple Deposit Creation and the Money Supply Process --- 16. Determinants of the Money Supply --- 17. Tools of Monetary Policy --- 18. Conduct of Monetary Policy: Goals and Targets ---- Part V. International Finance and Monetary Policy. 19. The Foreign Exchange Market --- 20. The International Financial System --- 21. Monetary Policy Strategy: The International Experience ---- Part VI. Monetary Policy 22. The Demand for Money --- 23. The Keynesian Frameworks and the ISLM Model --- 24. Monetary and Fiscal Policy in the ISLM Model --- 25. Aggregate Demand and Supply Analysis --- 26. Transmission Mechanisms of Monetary Policy: The Evidence --- 27. Money and Inflation --- 28. Rational Expectations: Implications for Policy.