Money, banking, and the financial system / R. Glenn Hubbard & Anthony Patrick O'Brien.

includes index.

Introducing money and financial system -- Money and the payment system -- Interest rates and rates of return -- Determining interest rates -- The risk structure and term of interest rates --The stock market, information, and financial market efficiency -- Derivatives and derivative markets -- The market for foreign exchange -- Transactions costs, asymmetric information, and the structure of the financial system -- The economics of banking -- Investment banks, mutual funds, hedge funds, and the shadow banking system -- Financial crises and financial regulation -- The federal reserve and central banking -- The federal reserve's balance sheet and the money supply process -- Monetary policy --The International financial system and monetary policy -- Monetary theory 1 : The aggregate demand and aggregate supply model -- Monetary theory II : The IS-MP model.