Includes index.

Introducing money and the financial system -- Money and the payments system -- Interest races and rates of return -- Determining interest rates -- The risk structure and term structure of interest rates -- The stock market, information, and financial market efficiency -- Derivatives and derivative markets -- The market for foreign exchange -- Transactions costs, asymmetric information, and the structure of the financial system -- Banks -- Investment banks, mutual funds, hedge funds, and the "shadow banking system" -- Financial crises and financial regulation -- The federal reserve and central banking -- The federal reserve's balance sheet and the money supply -- Process -- Monetary policy -- The international financial system and monetary policy -- Monetary theory I : aggregate demand and aggregate supply -- Monetary theory II : the IS-MP model.