This instructor's manual complements the textbook "Money: Theory and Practice," which provides an introduction to modern monetary economics for advanced undergraduates, highlighting the lessons learned from the recent financial crisis. The manual provides teachers with exercises and examples...

1. Unstable banking -- 2. Financial network, interconnectedness, and contagion -- 3. Endogenous exposure to systemic liquidity risks -- 4. Financial complexity and systemic risk -- 5. Leverage and leverage cycle -- 6. Micro fragility and macro stability -- 7. From microprudential to...

Part I: Money and Equilibrium in the Long Run -- Long Run Growth: The Basic Framework -- Money and Long Run Growth -- Interaction Between Monetary and Fiscal Policy: Active and Passive Monetary Regimes -- Part II: Monetary Policy in the Short Run -- New Keynesian Macroeconomics -- Optimal...