This book discusses in depth many of the key problems in non-equilibrium physics. Besides the standard subjects (Boltzmann and Master equations, linear response) it includes several new important subjects as well. The origin of macroscopic irreversible (dissipative) behavior receives an extended attention and is illustrated in the framework of solvable classical models of open systems (Chapter 3). The scaling relationship between the kinetic and hydrodynamical levels is described in Chapter 9. The QED of charged non-relativistic particles and its restriction to the states without photons to order 1/c leading to the current-current magnetic interaction is discussed in some depth in Chapters 14 and 15. Bose-Einstein condensation in real time within the frame of rate equations, as well as soliton-like solutions of the non-linear Gross-Pitaevskii equation are discussed in Chapter 22. The presentation also includes the latest developments -- quantum kinetics -- related to modern ultrafast spectroscopy (Chapters 23-30).This second edition was improved, restructured, and enriched with new results from the recent papers of the author. Chapter 3 was largely extended and Chapters 14 and 15 are completely new. Chapter 22 has a new Section. Several new useful figures were added throughout the book as well.