International Finance

Author: Tan Zhongming
Publisher:
Publish Date: 2001-01-03
Features: Preface International finance primarily studies the monetary credit relations and capital flows between countries from an open perspective, explaining the interadaptation and inherent laws between international financial activities and the international economy. Looking at the world today, the trend of economic and financial globalization is growing stronger, and profound changes are taking place in the field of international economic and finance. Major events are occurring one after another, and financial innovation is booming. Global and regional organizations such as the World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank, the European Economic and Monetary Union, the Asia-Pacific Economic Cooperation (APEC), the North American Free Trade Area (NAFTA), and the Association of Southeast Asian Nations (ASEAN) are playing increasingly important roles in international economic and financial activities. The shocks and impacts of crises such as the debt crisis in Latin American countries, the European currency crisis, the Mexican financial crisis, and the Asian financial crisis on the world economy and finance are still vividly remembered. To find answers to the aforementioned issues, it is essential to study and research international financial theory, as well as to gain an in-depth understanding of the operating principles and institutional background of the international financial market. Since the late 1970s, under the guidance of Deng Xiaoping's theory, China's reform and opening-up have been continuously deepening, with increasingly stronger economic and financial ties with countries around the world, achieving remarkable results. Marked by its accession to the WTO, China, as an open economy, has already integrated into the grand stage of world economic activities. In the future, China's connections with the world will become even closer, and the scale of foreign economic transactions involving goods, capital, technology, services, and more will continue to grow. Naturally, the international competition it faces will also intensify. An open economy requires open finance to serve it, making it urgent for people to strengthen their study of international financial theory and master international financial management techniques. Mr. Tan Zhongming's edited book, International Finance, meets the needs of China's higher education reform in cultivating talent for economic and management disciplines, as well as the needs of practitioners in the economic and financial sector to learn about international finance. Upon reviewing the entire book, I believe it has the following characteristics:
(1) Comprehensiveness. The book covers the basic knowledge points specified in the teaching syllabus for international finance issued by the Ministry of Education. It provides a systematic description of the fundamental theories, policies, and institutions of international finance, as well as a detailed introduction to the operation of the international financial market, basic practices, and management techniques. It also offers a relatively comprehensive explanation of China's international financial policies, institutions, and management.
(2) Novelty. The book has made many innovative adjustments in its content structure, organically integrating basic concepts, fundamental theories, policies, institutions, and practices based on the inherent connections and logic of international finance. It highlights theoretical depth while emphasizing practicality, helping readers systematically grasp the scientific connotations and knowledge system of international finance. For example, the traditional chapter "International Capital Flows and International Debt" has been divided into two chapters: "International Capital Flows" and "International Debt and International Financial Crises." The "European Monetary System" has been separated from the "International Monetary System" and merged with "European Monetary Integration" to form a new, expanded chapter. In these three chapters, the editors have added substantial new content, making each chapter more complete and enriching. This is a beneficial attempt.
(3) Frontier. The book closely tracks the development trends of international finance, fully absorbing and reflecting the cutting-edge achievements of contemporary international financial theory. For instance, it provides detailed discussions on such frontier topics as the elastic and sticky price analysis of exchange rates, the asset portfolio model of exchange rates, international capital flight, international financial crises, the theory of optimal currency areas, and the impact and prospects of European monetary integration—topics rarely or not at all covered in similar textbooks.
(4) Conciseness. The book features fluent language, rigorous logic, accurate expression, and substantial data, making it highly readable. Each chapter includes key concepts, reflection questions, and analysis and discussion questions, helping readers grasp key and challenging content while stimulating critical thinking.
I hope more young scholars will continue to conduct in-depth research in the field of international finance, keep pace with the times, and achieve new progress.
Fang Shiyu
School of Business, University of Science and Technology of China
January 2003