BMT 2630: International Finance - Theory and Policy

by Elijah Cooks

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This text provides future managers with the basic skills and knowledge necessary for transition into the world of international business.

Description from LibreTexts.

Publisher
Prince George's Community College
Subjects
Business
Licence
CC BY-NC-SA 3.0, as LibreTexts states it. Non-commercial use only.
Who can read
Tweens profiles and older, judged from its title and subjects

Contents

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  1. Front Matter
  2. TitlePage
  3. InfoPage
  4. Table of Contents
  5. Licensing
  6. Preface
  7. 1: Introductory Finance Issues- Current Patterns, Past History, and International Institutions
  8. 1.1: The International Economy and International Economics
  9. 1.2: GDP, Unemployment, Inflation, and Government Budget Balances
  10. 1.3: Exchange Rate Regimes, Trade Balances, and Investment Positions
  11. 1.4: Business Cycles- Economic Ups and Downs
  12. 1.5: International Macroeconomic Institutions- The IMF and the World Bank
  13. 2: National Income and the Balance of Payments Accounts
  14. 2.1: National Income and Product Accounts
  15. 2.2: National Income or Product Identity
  16. 2.3: U.S. National Income Statistics (2007–2008)
  17. 2.4: Balance of Payments Accounts- Definitions
  18. 2.5: Recording Transactions on the Balance of Payments
  19. 2.6: U.S. Balance of Payments Statistics (2008)
  20. 2.7: The Twin-Deficit Identity
  21. 2.8: International Investment Position
  22. 3: The Whole Truth about Trade Imbalances
  23. 3.1: Overview of Trade Imbalances
  24. 3.2: Trade Imbalances and Jobs
  25. 3.3: The National Welfare Effects of Trade Imbalances
  26. 3.4: Some Further Complications
  27. 3.5: How to Evaluate Trade Imbalances
  28. 4: Foreign Exchange Markets and Rates of Return
  29. 4.1: The Forex- Participants and Objectives
  30. 4.2: Exchange Rate- Definitions
  31. 4.3: Calculating Rate of Returns on International Investments
  32. 4.4: Interpretation of the Rate of Return Formula
  33. 4.5: Applying the Rate of Return Formulas
  34. 5: Interest Rate Parity
  35. 5.1: Overview of Interest Rate Parity
  36. 5.2: Comparative Statics in the IRP Theory
  37. 5.3: Forex Equilibrium with the Rate of Return Diagram
  38. 5.4: Exchange Rate Equilibrium Stories with the RoR Diagram
  39. 5.5: Exchange Rate Effects of Changes in U.S. Interest Rates Using the RoR Diagram
  40. 5.6: Exchange Rate Effects of Changes in Foreign Interest Rates Using the RoR Diagram
  41. 5.7: Exchange Rate Effects of Changes in the Expected Exchange Rate Using the RoR Diagram
  42. 6: Purchasing Power Parity
  43. 6.1: Overview of Purchasing Power Parity (PPP)
  44. 6.2: The Consumer Price Index (CPI) and PPP
  45. 6.3: PPP as a Theory of Exchange Rate Determination
  46. 6.4: Problems and Extensions of PPP
  47. 6.5: PPP in the Long Run
  48. 6.6: Overvaluation and Undervaluation
  49. 6.7: PPP and Cross-Country Comparisons
  50. 7: Interest Rate Determination
  51. 7.1: Overview of Interest Rate Determination
  52. 7.2: Some Preliminaries
  53. 7.3: What Is Money?
  54. 7.4: Money Supply Measures
  55. 7.5: Controlling the Money Supply
  56. 7.6: Money Demand
  57. 7.7: Money Functions and Equilibrium
  58. 7.8: Money Market Equilibrium Stories
  59. 7.9: Effects of a Money Supply Increase
  60. 7.10: Effect of a Price Level Increase (Inflation) on Interest Rates
  61. 7.11: Effect of a Real GDP Increase (Economic Growth) on Interest Rates
  62. 7.12: Integrating the Money Market and the Foreign Exchange Markets
  63. 7.13: Comparative Statics in the Combined Money-Forex Model
  64. 7.14: Money Supply and Long-Run Prices
  65. 8: National Output Determination
  66. 8.1: Overview of National Output Determination
  67. 8.2: Aggregate Demand for Goods and Services
  68. 8.3: Consumption Demand
  69. 8.4: Investment Demand
  70. 8.5: Government Demand
  71. 8.6: Export and Import Demand
  72. 8.7: The Aggregate Demand Function
  73. 8.8: The Keynesian Cross Diagram
  74. 8.9: Goods and Services Market Equilibrium Stories
  75. 8.10: Effect of an Increase in Government Demand on Real GNP
  76. 8.11: Effect of an Increase in the U.S. Dollar Value on Real GNP
  77. 8.12: The J-Curve Effect
  78. 9: Central Bank Form and Function
  79. 9.1: America’s Central Banks
  80. 9.2: The Federal Reserve System’s Structure
  81. 9.3: Other Important Central Banks
  82. 9.4: Central Bank Independence
  83. 9.5: Suggested Reading
  84. 10: Inflation and Money
  85. 10.1: Empirical Evidence of a Money-Inflation Link
  86. 10.2: Why Have Central Bankers So Often Gotten It Wrong?
  87. 10.3: Suggested Reading
  88. 11: The AA-DD Model
  89. 11.1: Overview of the AA-DD Model
  90. 11.2: Derivation of the DD Curve
  91. 11.3: Shifting the DD Curve
  92. 11.4: Derivation of the AA Curve
  93. 11.5: Shifting the AA Curve
  94. 11.6: Superequilibrium- Combining DD and AA
  95. 11.7: Adjustment to the Superequilibrium
  96. 11.8: AA-DD and the Current Account Balance
  97. 12: Policy Effects with Floating Exchange Rates
  98. 12.1: Overview of Policy with Floating Exchange Rates
  99. 12.2: Monetary Policy with Floating Exchange Rates
  100. 12.3: Fiscal Policy with Floating Exchange Rates
  101. 12.4: Expansionary Monetary Policy with Floating Exchange Rates in the Long Run
  102. 12.5: Foreign Exchange Interventions with Floating Exchange Rates
  103. 13: Fixed Exchange Rates
  104. 13.1: Overview of Fixed Exchange Rates
  105. 13.2: Fixed Exchange Rate Systems
  106. 13.3: Interest Rate Parity with Fixed Exchange Rates
  107. 13.4: Central Bank Intervention with Fixed Exchange Rates
  108. 13.5: Balance of Payments Deficits and Surpluses
  109. 13.6: Black Markets
  110. 14: Policy Effects with Fixed Exchange Rates
  111. 14.1: Overview of Policy with Fixed Exchange Rates
  112. 14.2: Monetary Policy with Fixed Exchange Rates
  113. 14.3: Fiscal Policy with Fixed Exchange Rates
  114. 14.4: Exchange Rate Policy with Fixed Exchange Rates
  115. 14.5: Reserve Country Monetary Policy under Fixed Exchange Rates
  116. 14.6: Currency Crises and Capital Flight
  117. 14.7: Case Study - The Breakup of the Bretton Woods System, 1973
  118. 15: Fixed versus Floating Exchange Rates
  119. 15.1: Overview of Fixed versus Floating Exchange Rates
  120. 15.2: Exchange Rate Volatility and Risk
  121. 15.3: Inflationary Consequences of Exchange Rate Systems
  122. 15.4: Monetary Autonomy and Exchange Rate Systems
  123. 15.5: Which Is Better- Fixed or Floating Exchange Rates?
  124. Back Matter
  125. Index
  126. Glossary
  127. Detailed Licensing