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
Chapter 12 Digital Currency and International Finance
  12.1 Digital currency
  12.2 Virtual currency
  12.3 Cryptocurrency & Blockchain
  12.4 Bitcoin
  12.5 Libra
  12.6 Digital Currency Electronic Payment
  12.7 Federal Reserve’s view towards digital currency
  12.8 Prospects of digital currency in international finance
Key to Exercises
Test One
Key to Test One
Test Two
Key to Test Two
References