International Money and Finance
- Michael Melvin, BlackRock Inc., San Francisco, CA, USA
AudienceUpper-division undergraduates and graduate students studying international finance, international economics, and international financial management.
- Published: September 2012
- Imprint: ACADEMIC PRESS
- ISBN: 978-0-12-385247-2
"International Money and Finance is an excellent resource for both international and multinational finance courses. The combined coverage of both topics â the environment of international financial institutions and instruments, and financial management tools for multinational corporations â makes it easier for students to grasp the impact of both on businesses that increasingly operate in a global environment."--Anne M. Alexander, University of Wyoming "This latest edition of the best-selling book discusses a number of important and somewhat complex concepts in international money and finance in a succinct, lucid yet analytical manner."--Ramkishen S. Rajan, George Mason University and National University of Singapore "The authors do an exceptional job of including this extensive range of topics in international money and finance, which provides high-level perspective on the global economy. I expect it will be a standard textbook for instruction and reference over the years."--Suleyman Degirmen, Mersin University "A concise, well-written, rigorous but at the same time easily accessible exposition of international finance."
--Firat Demir, University of Oklahoma "This textbook is an excellent source for graduate and advanced undergraduate students around the world. The authors have carefully prepared each chapter with updated information on various financial issues, including risk management and banking". --Viviana Fernandez, Universidad Adolfo IbaÃ±ez
Table of Contents
- Foreign Exchange Trading Volume
- Geographic Foreign Exchange Rate Activity
- Spot Exchange rates
- Currency Arbitrage
- Short-term Foreign Exchange rate movements
- FAQ: What is a Rogue Trader?
- Long-term Foreign Exchange Rate Movements
- Trade-weighted indices (Appendix)
- Top Foreign Exchange Dealers (Appendix) 2.
- The gold standard 1880-1914
- The Interwar Period: 1918-1939
- The Bretton Woods period 1944-1973
I. The International Monetary Environment
- Central Bank Intervention in the trade flow model
- Special Drawing Rights
- The Breakdown of the Bretton Woods System
- The Transition Years
- International Reserve Currencies
- FAQ: How big is the foreign reserve buildup in China?
- Floating Exchange Rate period 1973- present
- Types of floating exchange rates: Managed and Purely floating
- Types of fixed exchange rates: Pegs, currency board and "dollarization"
- Mixed systems of exchange rates: Crawling pegs and target zones
- Choice of Exchange Rate Systems
- Optimum Currency Areas
- The European Monetary System and the Euro
- Current Account
- FAQ: How big is the U.S. current account deficit compared to other countries?
- Financing the Current Account
- Additional Summary Measures
- Transaction Classifications
- Balance of Payments Equilibrium and Adjustment
- The U.S. Foreign Debt
- How bad is the U.S. Foreign Debt?
II. International Parity Conditions
- Forward rates
- FAQ: What is a Credit Default Swap?
- Recent practices
- Reasons for Offshore banking
- FAQ: Why is LIBOR the Most Important Rate in the World?
- Interest Rate Spreads and Risk
- International Banking Facilities
- Offshore Banking Practices
- Interest Rates and Inflation
- Exchange Rates, Interest Rates, and Inflation
- Expected Exchange Rates and the Term Structure of Interest Rates
- Appendix: What are logarithms, and why are they used in financial research?
- Absolute PPP
- The Big Mac Index
- Relative PPP
- Time, Inflation, and PPP
- Deviations from PPP
- Overvalued and undervalued currencies
- FAQ: What is PPP-adjusted GDP?
- Real Exchange Rates
- Appendix: The Effect on PPP by Relative Price Changes
- FAQ: Are Entrepreneurs risk lovers?
- Market Efficiency
- Foreign Exchange Forecasting
- Appendix 8: Technical Analysis in the Foreign Exchange Market
- Portfolio Diversification
- Reasons for incomplete portfolio diversification
- FAQ: How Internationally Diversified is a U.S. Retirement Plan?
- International Investment Opportunities
- The globalization of Equity Markets
- Elasticities and the J-curve
- Currency Contract period
- Pass-through Analysis
- The Marshall-Lerner Condition
- The Evidence from Devaluations
- The Absorption Approach to the Balance of Trade
- Internal and External macroeconomic Equilibrium
- The IS Curve
- The LM Curve
- The BP Curve
- Shifting the BP-curve
- Monetary and Fiscal Policy under Fixed Exchange Rates
- Monetary and Fiscal Policy under Floating Exchange Rates
- Using the IS-LM-BP Approach: The Asian Financial Crisis
- FAQ: Who Caused the Asian Financial Crisis?
- International Policy Coordination
- Appendix 13: The Open Economy Multiplier
- Specie-flow mechanism
- The Monetary Approach
- Monetary Approach to the Balance of payments
- Monetary Approach to the Exchange Rate
- Monetary Approach for a Managed Floating Exchange Rate
- Sterilized intervention
- The Trade Balance Approach
- The Overshooting Approach
- The Currency Substitution Approach
- Recent Innovations to the Open-Economy Macroeconomics