Chapter 1 Balance of Payments

1.1 International transactions： the balance of payments

1.2 Balance of payments surplus and deficit

1.3 Economic forces and the balance of payments

Chapter 2 Theories of Balance of Payments

2.1 The elasticity approach to the balance of payments

2.2 The absorption approach to the balance of payments

2.3 The monetary approach to the balance of payments

Chapter 3 Macroeconomic Policy in an Open Economy

3.1 The problem of internal and external balance

3.2 The Mundell-Fleming model

3.3 Conclusions

Chapter 4 Fixed， Floating and Managed Exchange Rates

4.1 Definitions and types of the exchange rate

4.2 The case for fixed exchange rates

4.3 The case for floating exchange rates

4.4 Managed floating

4.5 Conclusions

Chapter 5 Models of Exchange-rate Determination

5.1 Purchasing power parity

5.2 Covered interest parity

5.3 Market efficiency， uncovered interest parity and real interest parity

5.4 Foreign exchange risk management

Chapter 6 The Foreign Exchange Market

6.1 The basics of the foreign exchange market

6.2 Mechanics of the foreign exchange market

Chapter 7 Currency Futures， Options and Swaps

7.1 Introduction

7.2 Currency futures

7.3 Currency options

7.4 Currency and interest swaps

Chapter 8 International Lending and Financial Crises

8.1 International lending to developing countries

8.2 Financial crises： what can and does go wrong

8.3 Resolving financial crises

8.4 The frequency of financial crises

Chapter 9 The International Monetary System

9.1 History of the international monetary system

9.2 Contemporary currency regimes

9.3 Emerging markets and regime choices

9.4 The birth of a European currency： the euro

9.5 Exchange rate regimes： what lies ahead？

Chapter 10 International Banking and the Eurocurrency Market

10.1 The Eurocurrency market

10.2 International funds transfer and credit expansion through the Eurocurrency system

10.3 The Eurocurrency market and balance of payments disequilibrium

10.4 International banking： structure and instruments

Chapter 11 Foreign Direct Investment and International Capital Budgeting

11.1 Background

11.2 Approaches to international business

11.3 Theories of FDI

11.4 More about taxation

11.5 Foreign direct investment and country risk

11.6 Transfer pricing

Key to Exercises

Test One

Key to Test One

Test Two

Key to Test Two

References