The Economics of Foreign Exchange and Global Finance by Peijie Wang is a comprehensive textbook that provides an in-depth examination of international financial markets. The book focuses primarily on the economic theories that underpin the foreign exchange markets, international financial investments, and international financial management.
At its core, Wang’s book is a rigorous study of the economics of foreign exchange – the cornerstone of the global financial market. The author extensively covers the theories of foreign exchange rate determination and their practical application in forecasting. Through clear and concise explanations, readers gain a nuanced understanding of exchange rates and their influence on global trade, investments, and financial decisions.
The book also offers a robust analysis of global finance, addressing key topics such as international financial markets, international banking, and global risk management. These discussions give readers insight into the mechanisms and institutions facilitating international financial transactions and investments.
In the book, the author provides insight into risk management in international finance and the role of financial derivatives in managing these risks. He discusses a variety of financial instruments such as futures, options, and swaps, and how they are used in hedging against foreign exchange risk.
An important feature of the book is its treatment of financial crises. Wang meticulously dissects several significant global financial crises, revealing their root causes and effects on foreign exchange and financial markets. This examination offers valuable insights into the vulnerabilities inherent in the global financial system.
Lastly, the book covers the topic of global financial management, including international capital budgeting, international capital structure, and multinational cash management. It also discusses various international financial crises and their implications.
Overall, “The Economics of Foreign Exchange and Global Finance” provides a deep understanding of international financial market mechanisms. It combines theoretical models with empirical research, making it an excellent resource for students, researchers, and practitioners in the field of international finance and economics.