Includes bibliographical references and index.

About the authors -- Preface -- Learning tools walkthrough -- Money and the financial system -- An introduction to money and the financial system -- Money and the payments system -- Interest rates, financial instruments, and financial markets -- Future value, present value, and interest rates -- Bonds, bond prices, and the determination of interest rates -- The risk and term structure of interest rates -- Stocks, stock markets, and market efficiency -- Derivatives: futures, options, and swaps -- Foreign exchange -- Financial institutions -- The economics of financial intermediation -- Depository institutions: banks and bank management -- Financial industry structure -- Regulating the financial system -- Central banks, monetary policy, and financial stability -- Central banks in the world today -- The structure of central banks: the federal reserve and the european central bank -- The central bank balance sheet and the money supply process -- Monetary policy: stabilizing the domestic economy -- Exchange-rate policy and the central bank -- Money growth, money demand, and modern monetary policy -- Output, inflation, and monetary policy -- Modern monetary policy and the challenges facing central bankers -- Glossary -- Photo
.credits -- Index