International Monetary & Financial Economics

Résumé

One book with all of the content you need to teach the International Economics course

International Monetary and Financial Economics is an accessible, motivating textbook 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, instructors using this book will be prepared to cover all of the substantive issues in the field today. To motivate student 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.

Contenu
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 Economy’s 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