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Chapter 1 International Economics is Different
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Chapter 2 Payments among Nations
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● Accounting Principles
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● A Country’s Balance of Payments
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● The Macro Meaning of the Current Account Balance
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● The Macro Meaning of the Overall Balance
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● The International Investment Position
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Chapter 3 the Foreign Exchange Market
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● The Basics of Currency Trading
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● Demand and Supply for Foreign Exchange
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● Arbitrage within the Spot Exchange Market
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Chapter 4 Forward Exchange and International Financial Investment
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● Exchange-Rate Risk
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● The Market Basics of Forward Foreign Exchange
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● International Financial Investment
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● International Investment with Cover
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● International Investment without Cover
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● Does Interest Rate Parity Really Hold? Empirical Evidence
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Chapter 5 What Determines Exchange Rates?
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● A Road Map
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● Exchange Rates in the Short Run
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● The Long Run: Purchasing Power Parity (PPP)
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● The Long Run: the Monetary Approach
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● How Well can We Predict Exchange Rates?
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● Four Ways to Measure the Exchange Rate
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Chapter 6 Government Policies toward the Foreign Exchange Market
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● Two aspects: Rate Flexibility and Restrictions on Use
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● Floating Exchange Rate
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● Fixed Exchange Rate
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● Defense Through Official Intervention Exchange Control
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● International Currency Experience
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Chapter 7 International Lending and Financial Crises
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● Economic Objectives of Nations
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● International Lending
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● Taxes on International Lending
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● International Lending to Developing Countries
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● Financial Crises: What Can and Does Go Wrong
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● Resolving Financial Crises
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● Reducing the Frequency of Financial Crises
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● Global Financial and Economic Crises
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Chapter 8 How Does the Open Macroeconomy Work?
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● The Performance of a National Economy
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● Framework for Macroeconomic Analysis
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● Domestic Production Depends on Aggregate Demand
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● Trade Depends on Income
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● Equilibrium GDP and Spending Multipliers
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● A More Complete Framework: Three Market
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● The Price Level Does Change
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● Trade also Depends on Price Competitiveness
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Chapter 9 Internal and External Balance with Fixed Exchange Rates
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● From the Balance of Payments to the Money Supply
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● From the Money Supply Back to the Balance of Payments
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● Sterilization
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● Monetary Policy with Fixed Exchange Rates
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● Fiscal Policy with Fixed Exchange Rates
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● Perfect Capital Mobility
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● Shocks to the Economy
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● Imbalances and Policy Responses
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● Surrender: Changing the Exchange Rate
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● How Well Does the Trade Balance Respond to Changes in the Exchange Rate?
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Floating Exchange Rate and International Balance
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● Monetary Policy with Floating Exchange Rates
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● Fiscal Policy with Floating Exchange Rates
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● Shocks to the Economy
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● Internal Imbalance and Policy Responses
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● International Macroeconomic Policy Coordination