Provides a unique comparative survey of financial systems in Europe and the US, unified under a rigorous theoretical framework.

Preface Acknowledgements Symbols, Abbreviations and Other Conventions PART ONE: INTRODUCTION 1. The role of a financial system PART TWO: FINANCIAL INSTITUTIONS AND SYSTEMS 2. An introduction to financial systems 3. The UK financial system 4. The US financial system 5. The German financial system 6. The French and Italian financial systems 7. Financial systems in Northern Europe- Hans-Michael Trautwein PART THREE: THEORY 8. Portfolio theory 9. The determination of short-term interest rates 10. The structure of interest rates 11. The valuation of assets PART FOUR: MONEY AND BANKING 12. Banks and the supply of money 13. The demand for money 14. Monetary policy PART FIVE: MARKETS 15. Money markets 16. Bond markets 17. Equity markets 18. Foreign exchange markets 19. Derivatives - the financial futures markets 20. Options, swaps and other derivatives PART SIX: CURRENT ISSUES 21. The single European market 22. The European Monetary System and monetary union 23. The European Central Bank and euro area monetary policy 24. Financial innovation 25. The regulation of financial markets 26. Financial market efficiency Case Studies 1-8 Glossary of Terms Answers to Questions Index