Amazon.com description: Product Description: This text sets out, in straightforward terms, crucial aspects of monetary economics. It opens with an exposition of the fundamental question of what money is and what it does. The contributors then examine the key role of price stability and how to achieve it. Core issues addressed include: an examination of the long-run effect of money on prices; an analysis of the complex and variable relationship between money and fluctuations in the real economy; an investigation of inflation and its dangerous consequences; an analysis of the effect if regulation on the stability of financial systems in developed and developing countries; the relationship between the money supply regime and economic performance; the effect of monetary fluctuations on the interest rate; and the choice of targets for monetary policy.