1. International Monetary System
Learn how exchange rates affect domestic and international companies
Review factors that affect exchange rates
Learn how exchange rates are forecasted
Discuss how the international monetary system evolved and how it operates
Explain the European monetary system and assess its performance record

2. Exchange Rates and Business
Production
Decisions
Marketing
Decisions
Exchange Rates
and Business
Stability
and Predictability
Financial
Decisions

3. Factors That Determine Exchange Rates
Law of One Price
Products Are Entirely
Produced within Each
Particular Country
Products Are Identical
in Quality and Content
in All Countries

4. Factors That Determine Exchange Rates
Parity of
Purchasing Power
Considering the
Role of Inflation
Understanding the
Role of Interest Rates

5. Parity of Purchasing Power
Added
Costs
Trade
Barriers
Parity of
Purchasing
Power
Psychology
Business
Confidence

6. Forecasting Exchange Rates
Efficient
Market View
Inefficient
Market View

7. Forecasting Techniques
Fundamental
Analysis
Technical
Analysis

8. Evolution of
the International
Monetary System

9. The Gold Standard Reducing Exchange- Rate Risk Imposing
Advantages
Reducing
Exchange-
Rate Risk
Imposing
Strict Monetary
Policies
Correcting
Trade
Imbalances

10. Collapse of the Gold Standard
Devaluation
of Currency
Arbitrary
Par Values

11. The Bretton Woods Agreement
Fixed
Exchange Rates
Built-In
Flexibility
The Bretton Woods Agreement
The World
Bank
International
Monetary Fund

12. Special Drawing Rights

13. Collapse of the Bretton Woods Agreement
High U.S.
Trade Deficit
High U.S.
Budget Deficit
The Smithsonian
Agreement
Weakness of
the U.S. Dollar

14. The Managed Float System
Jamaica
Agreement
Plaza
Accord
Louvre
Agreement

15. Exchange Rates Today Pegged exchange rates
Limited flexibility exchange rates
More flexible exchange rates

16. Recent Financial Crises
The Debt Crisis
Mexico’s Peso Crisis
Southeast Asia’s Currency Crisis

17. Future of the International Monetary System
Reform
of the IMF
One World,
Ready or Not

18. The European Monetary System
Set Rates of
Exchange
Promote
Trade
Minimize
Inflation