Chapter 1 The Balance of Payments

1.1 Accounting Principles

1.2 Balance-of-Payments Structure

1.3 Classifications of Transaction

1.4 Balance-of-Payments Equilibrium

Summary

Chapter 2 Balance-of-Payments Adjustment and Determinants of the Balance of Trade and Payments

2.1 BOP Adjustments under Fixed Exchange Rates

2.2 Determinants of Balance of Trade and Payments

Summary

Chapter 3 International Monetary System

3.1 The Gold Standard Era,1870-1914

3.2 The Inter-War Period,1919-1939

3.3 The Bretton Woods Period,1946-1971

3.4 The Floating Rate Period,1971 to Present

3.5 Optimum Currency Areas and the EMS

3.6 The Euro

Summary

Chapter 4 Exchange-Rate Systems

4.1 Foreign Exchange-Rate Practices

4.2 Fixed Exchange-Rate System

4.3 Flexible Exchange-Rate System

4.4 Hybrid Exchange-Rate System

4.5 Adjustable Pegged Rates

4.6 The Crawling Peg

4.7 Exchange Controls

4.8 Currency Boards

4.9 Dollarization

Summary

Chapter 5 Foreign-Exchange Market and Financial Derivatives

5.1 Understanding the Foreign-Exchange Market

5.2 Spot Market

5.3 Financial Derivatives

5.4 Foreign-Exchange Market Speculation

Summary

Chapter 6 Exchange Rates,Interest Rates,and Interest Parity

6.1 Interest Parity

6.2 Interest Arbitrage

6.3 Interest Rates and Inflation

6.4 Exchange Rates,Interest Rates,and Inflation

6.5 Expected Exchange Rates and Term Structure of Interest Rates

Summary

Chapter 7 Foreign-Exchange Risk and Forecasting

7.1 Foreign-Exchange Risk

7.2 Foreign-Exchange Forecasting

Summary

Chapter 8 Exchange-Rate Determination

8.1 Exchange-Rate Determination—A Free Market

8.2 Prices and Exchange Rates；Purchasing Power Parity

8.3 The Asset Approach

8.4 Equilibrium Approach

Summary

Chapter 9 Import and Export Financing

9.1 Institutions

9.2 Financing International Trade

9.3 Nontraditional Trade Finance

9.4 An Example of Trade Financing

Summary

Chapter 10 Financial Management of the Multinational Enterprises

10.1 Portfolio Diversification

10.2 Transfer Price

10.3 Home Bias in International Investment

10.4 International Investment Opportunities

10.5 Direct Foreign Investment

10.6 Capital Flight

10.7 Capital Inflow Issues

10.8 Capital Budgeting

Summary

Chapter 11 International Banking：Reserves,Debt,and Risk

11.1 Nature of International Reserves

11.2 International Lending Crisis

Summary

Chapter 12 Macroeconomic Policy in the Open Economy

12.1 Economic Objectives of Nations

12.2 Policy Instruments

12.3 Policy Effects

12.4 Internal and External Macroeconomic Equilibrium

12.5 Monetary Policy under Fixed Exchange Rates

12.6 Fiscal Policy under Fixed Exchange Rates

12.7 Monetary Policy under Floating Exchange Rates

12.8 Fiscal Policy under Floating Exchange Rates

12.9 International Policy Coordination

Summary

References