Based on the actual operation of monetary economic operations, this book proposes that the essence of money is a right—that is, holding money means obtaining the "right to claim future utility"; monetary transactions are "pure" monetary exchanges, with the public and central bank act as suppliers of money, while financial intermediaries act as the demand side of money. Based on the redefinition of money and money transactions, this book constructs the micro-foundation of the theory of money demand by banks (financial intermediaries), and analyses the superposition of neutral and non-neutral states of money. It derives two fundamental theorems of excess money demand, proving that both the independence of bank credit and the formation of collateralized financing mechanisms will drive banks’ excess money demand for the household sector, thus creating cyclical economic-financial phenomena of overinvestment and credit contraction. Finally, it provides an in-depth analysis of two types of monetary circulation existing in real monetary economics—“output-money circulation” and “asset-money circulation”—demonstrating how collateralized financing mechanisms drive asset bubbles and asset price inflation, as well as the “catalyzing” role of accommodative monetary policies in this process.