Description
Book SynopsisWant to get the most out of your International Finance course? Nowadays the value of daily foreign exchange trading is more than one hundred times the value of annual international trade in goods and services.
Table of ContentsIntroduction 1
Part I: Getting Started with International Finance 9
Chapter 1: Money Makes the World Go ’Round 11
Chapter 2: Mastering the Basics of International Finance 21
Chapter 3: Buy, Sell, Risk! Users of Foreign Exchange Markets 39
Chapter 4: It’s All about Change: Changes in the Exchange Rate 51
Part II: Determining the Exchange Rate 69
Chapter 5: It’s a Matter of Demand and Supply 71
Chapter 6: Setting Up the Monetary Approach to Balance of Payments 87
Chapter 7: Predicting Changes in Exchange Rates Based on the MBOP 115
Part III: Understanding Long-Term Concepts and Short-Term Risks 135
Chapter 8: Your Best Guess: The Interest Rate Parity (IRP) 137
Chapter 9: Taking a Bite Out of the Purchasing Power Parity (PPP) 155
Chapter 10: Minimizing the FX Risk: FX Derivatives 167
Part IV: Conducting a Background Check: Changes in Currency through the Years 189
Chapter 11: Macroeconomics of Monetary Systems and the Pre-Bretton Woods Era 191
Chapter 12: The Bretton Woods Era (1944–1973) 211
Chapter 13: Exchange Rate Regimes in the Post–Bretton Woods Era 227
Chapter 14: The Euro: A Study in Common Currency 255
Part V: The Part of Tens 271
Chapter 15: Ten Important Points to Remember about International Finance 273
Chapter 16: Ten Common Myths in International Finance 279
Appendix: Famous Puzzles in International Finance 285
Index 293
