Part 1: Introduction. Why study money, banking, and financial markets? ; An overview of the financial system ; What is money? -- Part 2: 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 -- Part 3: 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 -- Part 4: Central banking and the conduct of monetary policy. Central banks and the Federal Reserve system ; The money supply process ; Tools of monetary policy ; The conduct of monetary policy : strategy and tactics -- Part 5: International finance and monetary policy. The foreign exchange market ; The international financial system -- Part 6: Monetary theory. Quantity theory, inflation, and the demand for money ; The IS curve ; The monetary policy and aggregate demand curves ; Aggregate demand and supply analysis ; Monetary policy theory ; The role of expectations in monetary policy ; Transmission mechanisms of monetary policy.