An in–depth overview and comparison of the structure, goals, tools and strategies of the European Central Bank, the Bank of England and the US Federal Reserve. A full review of the conventional and unconventional measures taken by the major central banks as a result of the global financial crisis. An extension of Chapter 18 on the international financial system with a comprehensive discussion of the optimal currency area theory and an assessment of the optimality of Euro area. Flexibility. A core set of chapters provides a basic framework for learning and analysis to fit a wide variety of syllabi, and a unifying, analytic framework uses a few basic economic principles to organize students' thinking. Careful, step-by-step model development makes the level appropriate for all students who take the course.   Applications are integrated within the main text using European examples and date to provide students the opportunity to see theory at work. Review and study support are included in the form of chapter previews, summary tables, key statements, graphs, summaries, key terms, and a glossary. Practice opportunities appear in the end-of-chapter problems.