The Theory of Monetary Institutions analyzes the often overlooked - but fundamental - questions about monetary policy regimes: * How and why have monetary institutions evolved into their present forms? * What are the leading arguments for and against government involvement in money and banking? * What models do we have for explaining how monetary authorities choose to behave in a discretionary fiat money regime, and how well do they fit? * What alternatives to the current regime are available, and how would they work?