This course provides an overview of the global financial system and its role in the economy, introducing the important institutional players, describing and classifying financial markets where institutions and individuals operate. It develops an analytical framework to understand the determinants of interest rates and prices and yields of financial assets and instruments. The course is roughly evenly split between institutional details concerning the organization of the contemporary financial system and the conceptual and analytical approaches used to understand past, current, and future developments in financial markets. The course provides an integrated analytical framework for understanding the effects of economic forces and economic policy on key financial market variables that determine the success of business strategies and present risks to firms or individuals from changes in interest rates, equity values, and exchange rates. The course also presents a thorough examination of the many roles and functions of the central bank and financial institutions within the financial system.