Part I. Foundations.- 1. The Financial System.- 2. Money and Central Banks.- Part II. Financial Markets.- 3. Asset Prices and Interest Rates.- 4. What determines Interest Rates?.- 5. Securities Markets.- 6. Foreign Exchange Markets.- Part III. Banking.- 7. Asymmetric Information in the Financial System.- 8. The Banking Industry.- 9. The Business of Banking.- 10. Bank Regulation.- Part IV. Money and the Economy.- 11. The Money Supply and Interest Rates.- 12. Short-Run Economic Fluctuations.- 13. Economic Fluctuations, Monetary Policy and the Financial System.- 14. Inflation and Deflation.- Part V. Monetary Policy.- 15. Policies for Economic Stability.- 16. Monetary Institutions and Strategies.- 17. Monetary Policy and Exchange Rates.- 18. Financial Crises.