The economic and financial changes that have occurred since the first edition was published have required a corresponding reorientation of the volume to keep pace with developments; indeed, 80 percent of the selections in this edition are new. However, it has been edited with the same major aim in mind: to make the subject of money and banking come alive for college students as an important and exciting part of the world about them. To this end, the selections have been chosen in accordance with three primary criteria: their readability for the undergraduate students, their relevance to current and prospective developments, and the presentation of contrasting viewpoints on vital and controversial issues of public policy.