This book highlights the basic principles of monetary economics and their application to developing countries. Fully illustrated, the new edition includes four entirely new chapters, with material on financial crises, the debates surrounding inflation targeting, and an examination of the role and future of financial institutions.

Introduction
Finance, Growth and Development
Financial Institutions in Developing Countries
Theories of Money and Economic Growth
The Keynesian and Monetarist Views on the Importance of Money
Money Demand
Monetary Institutions in Developing Economies
Monetary Policy Transmission, Rules and Strategies
Money, Inflation and Growth
Exchange Rate Policy
Debt and Crises
The International Financial Institutions

SUBRATA GHATAK is Emeritus Professor of Applied Economics at Kingston University, London, UK. He has written eight books and published numerous articles in national and international journals and books. He has also acted as a Consultant to the World Bank and the United Nations.

JOSÉ R. SÁNCHEZ-FUNG is Senior Lecturer in Economics at Kingston University, London, UK. He has held positions as Visiting Scholar at Columbia University in New York, Senior Associate Member of St Antony's College, University of Oxford, and Director of Economic Research at the Central Bank of the Dominican Republic.