This book provides a coherent account of traditional and modern theories of exchange rate determination and the results of international monetary movements. Focusing on the links between nominal exchange rate determination and the effects on the real economy, including necessary stabilization policies, this text provides a stimulating introduction to international monetary economics. The book includes a substantial section extending the treatment of internal and external stabilization and adjustment policies to developing countries and transitional economies, as well as an analysis of the role of policy in industrialized nations and within monetary unions. Covering a complete course in international monetary economics, this book is written in a clear and concise style suitable for all students. Author Emil-Maria Claassen also presents much useful data on the latest econometric techniques.