INSEAD Library

Includes bibliographical references and index and glossary

Digitized

A Modern Introduction to International Money, Banking and Finance Table of Contents PREFACE AND INTRODUCTION I: MONEY AND FINANCE (1) Money and Interest; The Markets for Money; Banks and Bankers' Banks; The Euromarket; A Simple Case Study; Final Remarks; APPENDIX: The Fisher Relationship ELEMENTARY BANKING (14) Some Banking Fundamentals; Exports and the Money Supply, Open Market Operations, and the Monetary Base; Application: Official Swap Arrangements, and the Intervention by Monetary Authorities to Support a Currency; Commercial Banks and the Foreign Exchange Market; Modern Banking: Prolegma to a Survey; Banks in Trouble; APPENDIX: Basle, Brussels, and the Relationship Between and , and Loan Reserves THE BALANCE OF PAYMENTS (41) Balance of Payments Accounting; The U.K.'s Move Toward Convertibility ( 1947); Concluding Remarks; APPENDIX: A Sick Balance of Payments EXCHANGE RATES (54) Introduction to Exchange Rates; Elementary Arbitrage; 'Getting Over' in the Foreign Exchange Market; Trade Weighted Exchange Rates, Purchasing Power Parity, and the Real Exchange rate; Final Comment; APPENDIX: Three Point Arbitrage, Proprietary Trading and Some Definitions, and Some Off-the-Balance-Sheet Disclosures. INTEREST RATES AND BONDS (78) Interest Rates; Coupon and Discount Bonds; Junk Bonds; Eurobonds and Eurofinancing; More on the Fundamentals; The Term Structure of Interest Rates; Interest Arbitrage; Concluding Remarks on Bonds and the Bond Markets; APPENDIX: Bonds - Personalities and Predators; Riding the Yield Curve; Bond Funds GLOBAL FINANCE (120) Some General Background; The Eurocurrency Market: Some Basic Mechanics; Interest Rate and Currency Swaps; Swap Agreements; Two "New" Instruments: Warrants and Convertibles; Concluding Remarks on Swaps, and Some Aspects of the Money Game; APPENDIX: Syndicated Loans, and the Relation Between Share Prices and Interest Rates, and Latin American Finance FUTURES AND OPTIONS (148) Futures Markets (1); Futures Markets (2); Interest Rate Futures; Options: An Elementary Introduction; Oil Futures Options; APPENDIX: Financial Futures and Some Options Geometry II: III: IV: V: VI: VII: VIII: THE STOCK MARKET (177) A Stock Market Fable; The Stock Market in a Larger Perspective; Some Stock Market History; Why Monday, October 19, was Black Instead of Green; The Stock Markets: 1987 - ; APPENDIX: The Efficient Markets Hypothesis and Rational Expectations RISK AND FINANCIAL ASSETS (204) Diversifications; The Capital Asset Pricing Model; Final Remarks; APPENDIX: 'Beta' and the Capital Asset Pricing Model THE POLITICAL ECONOMY OF INTERNATIONAL MONEY (218) The Gold Standard; The Price of Gold and the Exchange Rate Under the Gold Standard; From the Interwar Period to the Breakdown of the Bretton Woods System; Fluctuating Exchange Rates; The European Monetary System and Reaganomics; Conclusion: Is There Life After Reaganomics; APPENDIX: Optimum Currency Areas; A Comment on Mergers and Deregulation; Some Currency Union Mechanics; And More on IMF Credit THE ECONOMIC RUN-UP TO THE 21st CENTURY, AND SOME SIMPLE NATIONAL ACCOUNTING (249) The Population Problem; Europe and Japan; Some American Dilemmas; The Outlook for Oil; Les Grandes Illusions; Aid and Immigration, and Has the Market Squandered its Magic; The First and the Last; APPENDIX: Equilibrium and Disequilibrium IX: X: XI: EXAM QUESTIONS AND EXERCISES (267) GLOSSARY (282) BIBLIOGRAPHY (295) INDEX (298)