Summary

Specialist courses in international finance and monetary economics are increasing in importance in both economics and business syllabuses. This book provides students of economics, business or finance with a clear and non-technical treatment of the theories and models, causes and consequences of exchange rate fluctuations. The orientation is towards exchange rate determination, with particular emphasis given to the contribution of modern finance theory. explored and discussed. This edition adds new material on recent developments in theory and updates examples and data. A new chapter is devoted to the European Monetary System and European Monetary Union, discussing issues relating to exchange rate variability and the role of co-ordination in global macroeconomic policy. Another chapter discusses the impact of non linearity, cycles and chaos.