This paper briefly surveys the development of international finance theories after the 1960s. The important theories reviewed in this paper include: exchange rate dynamics, policy pre-announcement, first-generation currency crises, intertemporal optimizing model, exchange rate target zones,...

For proper valuation of risk to which the portfolio of financial assets is exposed, it is necessary to forecast the second moments of financial time series, that is variabilities. The empirical investigations show that financia time series are heteroskedastic, i.e. their volatility is not...