1. Introduction : the financial system -- 2. The financial system and the real economy -- 3. Deposit-taking institutions -- 4. Non-deposit-taking institutions -- 5. The money markets -- 6. The capital markets -- 7. Interest rates -- 8. Foreign exchange markets -- 9. Exchange rate risk, derivatives markets and speculation -- 10. International capital markets -- 11. Government borrowing and financial markets -- 12. Financial market failure and financial crises -- 13. The regulation of financial markets.