Includes most of the material covered in a money and banking course, along with more advanced topics. Part I provides the basis for understanding issues in monetary theory and policy, then focuses on institutions. Part II gives an intermediate-level treatment of monetary economics, and includes significant current research in the field. Part III addresses further aspects of policymaking. The modern general equilibrium model is emphasized throughout the book. A graphical model of a representative economy replaces ISLM in the core theory chapters.