International Money

This textbook covers modern international monetary theory, evidence and institutions at a level suitable for advanced undergraduates. The authors begin by explaining balance of payments and exchange rate theory, then assess the efficiency of exchange markets using the latest asset valuation theories. They also explain the changes in postwar international monetary institutions, and show that seriously increasing instability in the world economy is both the outcome and the cause of this institutional change. Throughout the book the authors set theoretical developments in their historical and empirical contexts.