A more concise and accessible text that covers the key concepts students need to learn in a course on international money and finance which combines treatment of both international financial economics and open economy macroeconomics. In presenting the material, this text concentrates on diagrammatic and conceptual explanations and consequently uses algebra sparingly. To pique student interest, this text addresses many current issues appearing in leading business-oriented publications such as The Economist, The Wall Street Journal, and Financial Times, and incorporates an emphasis on real-world business and policy issues.

• Thoroughly covers the full range of international money and finance topics, including international finance, international money and banking and open-economy macroeconomics, illustrating how all three areas help us understand the world economic and financial system.
• Integrates policy making and policy options throughout the text, as well as coverage of international organizations and their role in policy formation. "Policy Notebook" features in each chapter demonstrate how concepts can be applied to real-world policy issues.
• "Management Notebook" features integrate high-interest, real-world business applications to acquaint students with the variety of international financial issues faced by managers.
• Internet features include "On the Web" margin URLs as well as end-of-chapter "On-Line Application" Internet exercises to acquaint students with the wealth of international money and finance resources on the World Wide Web.
• "Fundamental Issues" open each chapter. These learning objective questions are answered in boxes throughout the chapter, and are the basis around which the chapter summary is organized. This pedagogical device helps students focus on the key ideas being presented and is a very useful chapter review tool.
• Presents a single model of foreign exchange markets and balance of payments determination early to generate much of the subsequent analysis, enabling quick development of a full open-economy IS-LM-BP framework for use in illustrating the key implications of purchasing power parity, interest parity, the asset approach, the monetary approach, and typical Mundell-Fleming analysis.
• Clearly presents the economics of spot and forward exchange markets, spatial and triangular arbitrage, purchasing power parity, and interest parity.
• Considerable attention is paid to markets for international financial instruments, including derivative securities, as well as to topics such as Eurocurrency markets, vehicle currencies, and international financial market linkages.
• Presents in-depth coverage of issues in international banking, such as payments systems, bank regulation, and the role of central banks. Traditional, monetary, and portfolio approaches to the balance of payments also receive solid coverage.
• The implications of varying degrees of capital mobility, international interdependence, and aggregate price flexibility for monetary and fiscal policy under fixed and floating exchange rates are examined both in a small open-economy setting and in the context of straightforward two-country frameworks.