I have continually strived to improve this textbook with each new edition, and the Seventh Edition of The Economics of Money, Banking, and Financial Markets is no exception. The text has undergone a major revision, but it retains the basic hallmarks that have made it the best-selling textbook on money and banking in the past six editions:

• A unifying, analytic framework that uses a few basic economic principles to organize students' thinking about the structure of financial markets, the foreign exchange markets, financial institution management, and the role of monetary policy in the economy

• A careful, step-by-step development of models (an approach found in the best principles of economics textbooks), which makes it easier for students to learn

• The complete integration of an international perspective throughout the text

• A thoroughly up-to-date treatment of the latest developments in monetary theory

• Special features called "Following the Financial News" and "Reading the Wall Street Journal" to encourage reading of a financial newspaper

• An applications-oriented perspective with numerous applications and special-topic boxes that increase students' interest by showing them how to apply theory to real-world examples

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