Financial crises: an overview -- The nature of banking crises -- The panic of 1907 and the savings and loan crisis -- Development of the housing and credit bubbles -- Bursting of the twin bubbles -- The great crisis and the great recession of 2007-2009 -- The framework of Federal Reserve monetary control -- Federal Reserve policy in the great depression -- The Federal Reserve's response to the great crisis -- The Federal Reserve's exit strategy and the threat of inflation -- The Taylor rule and evaluation of U.S. monetary policy -- Regulatory reform proposals.