Well-known for its engaging, conversational style, this text makes sophisticated concepts accessible, introducing students to how markets and institutions shape the global financial system and economic policy.Principles of Money, Banking, & Financial Marketsincorporates current research and data while taking stock of sweeping changes in the international financial landscape produced by financial innovation, deregulation, and geopolitical considerations. The Basics:Introducing Money, Banking, and Financial Markets; The Role of Money in the Macroeconomy; Financial Instruments, Markets, and Institutions.Financial Instruments and Markets:Interest Rate Measurement and Behavior; The Term and Risk Structure of Interest Rates; The Structure and Performance of Securities Markets; The Pricing of Risky Financial Assets; Money and Capital Markets; Demystifying Derivatives; Understanding Foreign Exchange.Banks and Other Intermediaries:The Nature of Financial Intermediation; Depository Financial Institutions; Nondepository Financial Institutions.Financial System Architecture:Understanding Financial Contracts; The Regulation of Markets and Institutions; Financial System Design.The Art of Central Banking:Who's In Charge Here?; Bank Reserves and the Money Supply; The Instruments of Central Banking; Understanding Movements in Bank Reserves; Monetary Policy Strategy.Monetary Theory:The Classical Foundations; The Keynesian Framework; TheISLMWorld; Money and Economic Stability in theISLMWorld; An Aggregate Supply and Demand Perspective on Money and Economic Stability; Rational Expectations: Theory and Policy Implications; Empirical Evidence on the Effectiveness of Monetary Policy.Grand Finale:Tying It All Together. For all readers interested in money, banking, and financial markets.