One book with all of the content you need for the International Economics course. This book is also suitable for all readers interested in the field of international economics. International Monetary and Financial Economics is an accessible, motivating book that covers the full range of topics appropriate for a complete course in international money and finance. With balanced coverage of both international finance and open-economy macroeconomics, readers will be exposed to all of the substantive issues in the field today. To motivate learning, Management, Policy, and Online Notebook features provide more than 50 examples of international financial issues, recent policy issues, and the role of worldwide electronic commerce.
I. INTERNATIONAL PAYMENTS AND EXCHANGE 1. Keeping Up with a Changing World-Trade Flows, Capital Flows, and the Balance of Payments Why it is important to understand international money and finance International Economic Integration: The Importance of Global Trade and Financial Markets The Balance of Payments Examples of International Transactions and How they Affect the Balance of Payments The Capital Account and the International Flow of Assets Relating the Current Account Balance and Capital Flows Chapter Summary Questions and Problems Online Application Selected References and Further Reading 2. The Market for Foreign Exchange Exchange rates and the market for foreign exchange Composite Currencies Foreign Exchange Arbitrage The Demand for and Supply of Currencies Purchasing Power Parity Chapter Summary Questions and Problems Online Application Selected References and Further Reading 3. Exchange-Rate Systems, Past to Present Exchange Rate Systems The Gold Standard The Bretton Woods System The Flexible Exchange Rate System Other Forms of Exchange Arrangements Today Fixed or Floating Exchange Rates? Chapter Summary Questions and Problems Online Application Selected References and Further Reading II. INTERNATIONAL FINANCIAL INSTRUMENTS, MARKETS, AND INSTITUTIONS 4. The Forward Currency Market and International Financial Arbitrage Foreign Exchange Risk The Forward Exchange Market International Financial Arbitrage Uncovered Interest Parity Foreign Exchange Market Efficiency International Financial Markets Chapter Summary Questions and Problems Online Application Selected References and Further Reading 5. Interest Yields, Interest-Rate Risk, and Derivative Securities Interest Rates Interest Rate Differentials-Excess Returns and Failure of Uncovered Interest Parity Real Interest Rates and Real Interest Parity Hedging, Speculation and Derivative Securities Common Derivative Securities and Their Risks Chapter Summary Questions and Problems Online Application Selected References and Further Reading 6. International Banking, Central Banks, and Supranational Financial Policymaking Institutions International Dimensions of Financial Intermediation Global Payments and Financial System Risks Bank Regulation and Capital Requirements Central Banks What do Central Banks Do? Supranatural Financial Policymaking Institutions Chapter Summary Questions and Problems Online Application Selected References and Further Reading 7. The International Financial Architecture and Emerging Economies International Capital Flows Capital Market Liberalization and International Financial Crises Exchange Rate Regimes and Financial Crises Does the International Financial Architecture Need a Redesign? Chapter Summary Questions and Problems Online Application Selected References and Further Reading III. EXCHANGE-RATE AND BALANCE-OF-PAYMENTS DETERMINATION 8. Traditional Approaches to Balance-of-Payments and Exchange-Rate Determination Common Characteristics of the Traditional Approaches Exports, Imports, and the Demand for and Supply of Foreign Exchange The Elasticities Approach The Absorption Approach Chapter Summary Questions and Problems Online Application Selected References and Further Reading 9. Monetary and Portfolio Approaches to Balance-of-Payments and Exchange-Rate Determination Central Bank Balance Sheets Managed Exchange Rates: Foreign Exchange Interventions The Monetary Approach to Balance of Payments and Exchange Rate Determination Applying the Monetary Approach: A Two Country Setting The Portfolio Approach to Exchange Rate Determinatin Chapter Summary Questions and Problems Online Application Selected References and Further Reading IV. OPEN ECONOMY MACROECONOMICS AND POLICY ANALYSIS 10. An Open Economy Framework Measuring An Economys Performance: Gross Domestic Product and Price Indexes Real Income and Expenditures: The IS Schedule The Market for Real Money Balances: The LM Schedule The Balance of Payments: The BP Schedule and the IS-LM-BP Model Chapter Summary Questions and Problems Online Application Selected References and Further Reading 11. Economic Policy with Fixed Exchange Rates The Objectives of Policy The Role of Capital Mobility Fixed Exchange Rates and Imperfect Capital Mobility Fixed Exchange Rates and Perfect Capital Mobility Chapter Summary Questions and Problems Online Application Selected References and Further Reading 12. Economic Policy with Floating Exchange Rates Floating Exchange Rates and Imperfect Capital Mobility Floating Exchange Rates and Perfect Capital Mobility Fixed Versus Floating Exchange Rates Chapter Summary Questions and Problems Online Application Selected References and Further Reading 13. The Price Level, Real Output, and Economic Policymaking Aggregate Demand Aggregate Supply Rules Versus Discretion in Economic Policymaking Chapter Summary Questions and Problems Online Application Selected References and Further Readings V. DOMESTIC AND MULTINATIONAL POLICYMAKING IN A GLOBAL ECONOMY 14. Domestic Economic Policymaking in a Global Economy The Policy Assignment Problem Exchange Rate Responses to Policy Actions with Sticky Wages and Prices-Exchange Rate Overshooting Openness and the Output Inflation Relationship- How Globalization Alters the Effects of Policies Openness and Inflation New Open Economy Macroeconomics and Its Policy Implications Chapter Summary Questions and Problems Online Application Selected References and Further Readings 15. Policy Coordination, Monetary Union, and Target Zones International Interdependence Perfect Capital Mobility Revisited: Can International Policy Coordination Pay? The Pros and Cons of International Policy Coordination The Economics of Monetary Unions Vehicle Currencies Splitting the Difference: Exchange Rate Target Zones Chapter Summary Questions and Problems Online Application Selected References and Further Readings