Contains:

Foreword

The global economy

Exchange rates and balance of payments

Foreign exchange market

Equilibrium relationships in international money and goods markets

Deviations from the law of one price and the puzzle of purchasing power parity

Modeling exchange rates: The asset market approach

Real exchange rate and terms of trade

Intervention in the foreign exchange market

Currency crises

Exchange rate regimes and macroeconomic policy

Global imbalances and determination of the global equilibrium interest rate

Financial cycles, global liquidity, and global monetary policy

International real business cycles and allocation of international risk

The puzzle of violating the international risk-sharing treaty in a dynamic trade model

The global market for safe dollar bonds and the determination of the dollar price

Index