Description
Book SynopsisThis textbook aims to provide a complehensive and understadable analytical framework of international finance in terms of theory and practice. The book covers three main areas - The International Financial Environment, Determinants of Exchange Rate and Exchange Rate Policy, and Foreign Exchange Derivatives.
This book is suitable for every level of learner. Anyone who is curious about international finance topics from college students to their professors can all find something useful from within the rich and varied content presented here. It has been written in an engaging and refreshing way to reward effort over sometimes complex concepts. It stresses learning by example. To explore a theory or method, an example is worked out first, and the (mathematical) principles are explained later. Exercise and solution keys are provided at the end of each chapter to facilitate both self learning and the teaching process.
Table of ContentsContents: An introduction – The foreign exchange market – International monetary system – Balance of payments and international investment position – Exchange rate and exchange rate regimes – Theory of purchasing power parity – Theory of interest rate parity – Determinants of exchange rate - the complete view – Monetary, fiscal and exchange rate policy (IS- LM- BP approach) – Identification of exchange rate risk – The foreign exchange forwards – The foreign exchange swaps – Currency futures – Currency options.
