Sumario: | This book presents all major subjects in international monetary theory, foreign exchange markets, international financial management and investment analysis. The book is relevant to real world problems in the sense that it provides guidance on how to solve policy issues as well as practical management tasks. This in turn helps the reader to gain an understanding of the theory and refines the framework. This second edition of the book incorporates two new chapters, together with updating most chapters in the first edition, integrating new materials, data, and/or the recent developments in the areas. The book can be used in graduate and advanced undergraduate programmes in international or global finance, international monetary economics, and international financial management. Subjects covered include: - foreign exchange markets and foreign exchange rates - exchange rate regimes and international monetary systems - international parity conditions - balance of payments and international investment positions - open economy macroeconomics - balance of payments issues and exchange rate movements: the elasticity approach, the absorption approach, the monetary approach, and analysis of FDI and trade balance interactions - models of exchange rate determination: the Mundell-Fleming model, the flexible price monetary model, the Dornbusch model, the real interest rate differential model, and the portfolio balance model - global derivatives markets - derivative financial instruments for foreign exchange risk management: currency futures, currency options, and currency swaps - measurement and management of transaction exposure, economic exposure and accounting exposure - country risk analysis and sovereign risk analysis - foreign direct investment and international portfolio investment.
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