Providing a current, modern approach to the subject of money, the financial system and the economy, this book integrates international material throughout. It uses an understand, evaluate and predict framework to teach the subject. Features like "Moving From Theory to Practice" and "Other Times, Other Places" give the student practice in conducting economic analysis of newspaper articles and help them in learning the historical and international underpinnings of the course. It provides flexibility in macro-coverage by offering complete chapters in IS/LM and AD/AS models. In-chapter checkpoints serve as a self-study tool in assessing students' progress in mastering concepts.