International Money and Finance

The second edition of this highly successful text begins by explaining exchange rate and balance of payments theory from basics through to the most recent state of the art theoretical developments. The book also covers key areas such as rational expectations, speculative bubbles, technical analysis, the news and chartism in foreign exchange markets; and the internationalization of national financial systems.There are new chapters on international policy co-ordination, the gold standard, changes in post-war international monetary institutions, the EMS, the Eurocurrency markets and the integration of formerly centrally planned economies and developing countries into the international financial system.Hallwood and MacDonald emphasize the econometrics of international finance in separate starred sections. Intuitive and mathematical arguments appear side by side. They show that increased instability in the world economy is both the outcome and one of the causes of this institutional change.Throughout the book the authors ground theoretical developments in their historical and empirical contexts. International Money and Finance will prove invaluable to advanced undergraduate and graduate students studying the international economy.