This volume discusses the role of financial markets and institutions in a growing. economy. The authors develop for the first time a theory of finance of which monetary theory is a part. Their treatment is technical and is addressed more to the professional economist than to the general reader. The purpose is to make a pioneering contribution that will place money in the broader context of financial assets. Like all pioneering ventures in economic research, it is expected to induce controversy, refinements, and further theoretical contributions.