Financial markets exercise an enormous influence over modern economies and it is certainly not exaggerated to say that central banks are among the most important actors in financial markets. At the same time, central banks closely monitor the signals and the overall situation in financial markets, often trying to avoid the worst when the situation becomes fragile. The structure of this book aims at presenting the key concepts of the financial sphere in an accessible and easy-to-read format. Starting from the very basics, the book discusses markets, instruments, and processes before presenting them in an overall framework. The latter helps to understand how the various parts interact and relate to the whole. Numerous examples and end-of-chapter summaries add to a better understanding of the concepts used. The book is targeted towards students interested in the world of finance and monetary policy. Both authors have spent decades in the practice of central banking and financial markets and can look back on a long tradition of very successful teaching activities

Dieter Gerdesmeier Dieter Gerdesmeier worked in various departments of the Deutsche Bundesbank, before joining the European Central Bank in 1998. Since March 2007, Dieter is acting as Secretary to the Monetary Policy Committee in the European Central Bank. Dieter is mostly lecturing in the Frankfurt School of Finance& Management, where he holds a honorary professorship. Leo Th. Schrutt Leo Th. Schrutt is one of leading experts in the field of investment banking in Switzerland. After having worked for the Swiss National Bank, Leo held top management positions at the Swiss Bank Cooperation, the UBS and at the Julius Baer Group, being responsible for Asset Management and Research. At the current stage, Leo holds several positions in various boards and is an advisor to several international institutions. He was lecturing at the University of Liechtenstein and the Fachhochschule in Aarau.