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| List of Figures | |
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| List of Tables | |
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| Preface to the Third Edition | |
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| Introduction | |
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| Some Basic Concepts in International Finance | |
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| The exchange rate | |
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| The balance of payments accounts | |
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| Purchasing power parity | |
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| Floating exchange rates: prospect and retrospect | |
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| Exchange rate volatility | |
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| Spot and Forward Exchange Rates: Some More Basic Ideas | |
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| The elasticities view of the exchange rate | |
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| The forward exchange rate, arbitrage and pure speculation | |
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| Covered interest parity - empirical evidence | |
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| Uncovered interest parity - empirical evidence | |
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| Real interest rate parity - empirical evidence | |
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| Income and the Balance of Payments | |
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| The foreign trade multiplier | |
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| The equilibrium real exchange rate | |
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| An early view of economic management | |
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| The assignment problem | |
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| The absorption approach | |
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| Intertemporal utility maximization and the current account | |
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| Twin deficits | |
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| Foreign repercussions with no capital mobility | |
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| Macroeconomics in an Open Economy: The Mundell-Fleming Model and Some Extensions | |
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| The "base-line" Mundell-Fleming model | |
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| The large country case | |
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| Insulation and the MF model | |
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| Imperfect capital mobility and the MF model | |
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| Regressive expectations and monetary-fiscal policy | |
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| The J curve and regressive expectations | |
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| Wealth effects | |
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| Aggregate supply, the real balance effect and the exchange rate in the MF model | |
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| Summary and conclusions | |
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| International Policy Coordination | |
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| The two-country Mundell-Fleming model and macroeconomic interdependence | |
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| The potential gains from policy coordination | |
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| Dynamic games and the sustainability and reputation credibility of international cooperation | |
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| Some evidence on the potential benefits of coordination | |
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| Potential impediments to policy coordination and the appropriate form of such coordination | |
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| Purchasing Power Parity: Theory and Evidence | |
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| The absolute and relative purchasing power parity concepts | |
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| The efficient markets view of purchasing power parity | |
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| Further interpretation of purchasing power parity | |
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| Some further criticisms of purchasing power parity | |
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| The empirical validity of purchasing power parity | |
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| Concluding comments | |
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| The Monetary Approach to the Balance of Payments | |
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| What is so different about the monetary approach? | |
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| The global monetarist model | |
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| Sterilization and the reserve offset coefficient | |
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| The international transmission of inflation: some evidence | |
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| The Monetary View of Exchange Rate Determination | |
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| The asset approach to the exchange rate | |
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| The flex-price monetary approach to the exchange rate | |
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| Introducing expectations | |
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| Rational speculative bubbles | |
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| The sticky-price monetary approach | |
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| Currency substitution | |
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| Empirical evidence on the monetary model | |
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| More empirical evidence | |
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| Empirical tests for the existence of speculative bubbles | |
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| Concluding comments | |
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| The Monetary Model: Further Applications - Real Shocks and Exchange Regime Volatility | |
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| Introduction | |
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| The general equilibrium monetary model | |
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| The monetary model and exchange regime volatility | |
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| Empirical evidence on the general equilibrium approach | |
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| Concluding comments | |
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| The Portfolio Balance Approach to the Determination of the Exchange Rate | |
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| The portfolio balance model | |
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| Open market purchase of bonds: monetary policy | |
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| An increase in the supply of domestic bonds: fiscal policy | |
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| Asset preference shift | |
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| Econometric evidence on the portfolio balance approach | |
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| Summary and concluding comments | |
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| Spot and Forward Exchange Rates and the Efficient Markets Hypothesis | |
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| Spot and forward exchange rates | |
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| The efficient markets hypothesis and the forward market for foreign exchange | |
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| Econometric estimation of the efficient markets hypothesis | |
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| A risk premium story to explain why a may not be unity | |
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| Empirically implementing equa | |