The Economics of Foreign Exchange and Global Finance

1. Front Matter

   Pages 1-11

   PDF

2. Foreign Exchange Markets and Foreign Exchange Rates

   • Peijie Wang

   Pages 1-15

3. Exchange Rate Regimes and International Monetary Systems

   • Peijie Wang

   Pages 1-13

4. International Parity Conditions

   • Peijie Wang

   Pages 1-32

5. Balance of Payments and International Investment Positions

   • Peijie Wang

   Pages 1-28

6. Open Economy Macroeconomics

   • Peijie Wang

   Pages 1-18

7. Balance of Payments Issues and Exchange Rate Movements

   • Peijie Wang

   Pages 1-29

8. The Mundell-Fleming Model

   • Peijie Wang

   Pages 1-28

9. The Flexible Price Monetary Model

   • Peijie Wang

   Pages 1-17

10. The Dornbusch Model

    • Peijie Wang

    Pages 1-29

11. The Portfolio Balance Approach to Exchange Rate Determination

    • Peijie Wang

    Pages 1-25

12. Global Derivatives Markets

    • Peijie Wang

    Pages 1-30

13. Currency Futures

    • Peijie Wang

    Pages 1-15

14. Currency Options

    • Peijie Wang

    Pages 1-43

15. Currency Swaps

    • Peijie Wang

    Pages 1-14

16. Transaction Exposure

    • Peijie Wang

    Pages 1-15

17. Economic Exposure and Accounting Exposure

    • Peijie Wang

    Pages 1-14

18. Country Risk and Sovereign Risk Analysis

    • Peijie Wang

    Pages 1-19

19. Foreign Direct Investment and International Portfolio Investment

    • Peijie Wang

    Pages 1-19

20. Back Matter

    Pages 1-17

    PDF

The book is designed to integrate the theory of foreign exchange rate determi- tion and the practice of global finance in a single volume, which demonstrates how theory guides practice, and practice motivates theory, in this important area of scholarly work and commercial operation in an era when the global market has become increasingly integrated. The 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 new edition of the book incorporates two new chapters, together with - dating most chapters in the first edition, integrating new materials, data, and/or the recent developments in the areas. A new chapter on the portfolio balance approach to exchange rate determination is included, in addition to the major models - cluded in the first edition: the Mundell-Fleming model, the flexible price monetary model, the sticky price monetary model featured by the Dornbusch model and the real interest rate differential model. This makes the book inclusive in exchange rate theories. A second new chapter included is on issues in balance of payments or international transactions and their interactions with exchange rates, changes in exchange rates and exchange rate policies.

• Derivatives
• Foreign Exchange
• Futures
• International Finance
• International Investments
• International Monetary Economics
• Options
• Portfolio
• Swaps
• monetary theory

Peijie Wang is Professor of Finance at the University of Hull Business School. He has taught and held visiting appointments at Southeast University, UMIST, University of Manchester, Manchester Business School, IESEG School of Management, Catholic University of Lille, Cass Business School, City University, University of Bradford and University of Reading. Prof. Wang is author of several books and a regular contributor to journals in the areas of international finance, real estate, finance and economics.

Policies and ethics