Designed for advanced undergraduates in economics, this new text provides an up-to-date guide to the practice and theory of monetary policy and provides key models and issues that tie in with contemporary research and policy. Focusing on the transmission mechanism of monetary policy, the book features analysis on the behaviour of the United Kingdom bank, the European Central bank and the Federal Reserve. Contemporary issues are discussed and theorized such as the worldwide credit crunch, subsequent recession and quantitative easing.