Contentsix
Prefacexxiii
Acknowledgmentsxxvi
AbouttheAuthorsxxviii
PARTITheBasics1
CHAPTERIIntroducingMoney,Banking,andFinancialMarkets3
CHAPTER2TheRoleofMoneyintheMacroeconomy13
CHAPTER3FinancialInstruments,Markets,andInstitutions31
PARTIIFinancialInstrumentsandMarkets49
CHAPTER4InterestRateMeasurementandBehavior51
CHAPTER5TheRiskandTermStructureofInterestRates75
CHAPTER6TheStructureandPerformanceofSecuritiesMarkets93
CHAPTER7ThePricingofRiskyFinancialAssets109
CHAPTER8MoneyandCapitalMarkets.121
CHAPTER9DemystifyingDerivatives151
CHAPTER10UnderstandingForeignExchange173
PARTIIIBanksandOtherIntermediaries193
CHAPTER11TheNatureofFinancialIntermediation195
CHAPTER12DepositoryFinancialInstitutions217
CHAPTER13NondepositoryFinancialInstitutions245
PARTIVFinancialSystemArchitecture261
CHAPTER14UnderstandingFinancialContracts263
CHAPTER15TheRegulationofMarketsandInstitutions287
CHAPTER16FinancialSystemDesign309
CHAPTER17FinancialInnovation329
PARTVTheArtofCentralBanking339
CHAPTER18Who'sinChargeHere?341
CHAPTER19BankReservesandtheMoneySupply353
CHAPTER20TheInstrumentsofCentralBanking375
CHAPTER21UnderstandingMovementsinBankReserves391
CHAPTER22MonetaryPolicyStrategy413
PARTVIMonetaryTheory427
CHAPTER23TheClassicalFoundations429
CHAPTER24TheKeynesianFramework451
CHAPTER25TheISLMWorld481
CHAPTER26MoneyandEconomicStabilityintheISLMWorld515
CHAPTER27AnAggregateSupplyandDemandPerspectiveonMoneyandEconomicStability531
CHAPTER28RationalExpectations:TheoryandPolicyImplications551
CHAPTER29EmpiricalEvidenceontheEffectivenessofMonetaryPolicy561
PARTVIGrandFinale575
CHAPTER30TyingItAllTogether577
Glossary591
index609