This textbook elucidates the complex interconnections between money, capital, and credit markets as well as the influence of exchange rate systems. The new edition discusses the impacts of freedom of movement for workers and current developments in the sovereign debt crisis.

This paper examines the consequences of heightened capital mobility and of the integration of developing economies in increasingly globalized markets for the exchange rate regimes of the industrial, developing, and transition economies. It builds upon previous studies by IMF staff on various...