Compared with the third edition, the fourth edition has made the following improvements:

(1) The third chapter adds the contents of related financial derivatives in the development of the current financial crisis.

(2) In the fifth chapter, the introduction of China's open market operation is added; The main monetary policies of the central bank in recent years and the new changes in the development of monetary policies in developed countries since the late 1990s.

(3) Chapter 7 adds endogenous and exogenous contents of money supply.

(4) Chapter 8 adds the monetary theory of rational expectation.

(5) Some data are updated and enriched.

The characteristics of this book are that the content is relatively systematic and complete, covering the main fields and frontiers of modern monetary and financial theory and practice; Pay equal attention to theory and practice; Pay attention to the combination of breadth and depth. In order to help readers understand and further think about what they have learned, there are summaries, basic concepts and thinking questions at the end of each chapter.