The Basics of Foreign Exchange Markets: A Monetary Systems Approach, Second Edition


In an increasingly interdependent global economy, an understanding of foreign exchange markets is more critical than ever. These markets are inextricably entwined with underlying monetary standards and consequently they are treated conjointly in this book. Four different foreign exchange rate regimes are analyzed including exchange rates under commodity money, fiduciary money, flat money (with fixed exchange rates), and flat money (with flexible exchange rates).
For more than eight decades, most countries have operated with flat money. Proponents maintain that flat money provides individual countries with much greater monetary autonomy. Yet both analytics and experience indicate that this is not always the case. Whether a country has more monetary autonomy depends on whether flat money is paired with fixed or flexible exchange rates. Although flexible exchange rate regimes are not without their critics, it has become increasingly apparent that flat money with flexible rates provides individual countries much greater monetary autonomy. This arrangement allows participants in foreign exchange markets greater latitude for adjusting to the wide variations in national monetary policies that are prevalent with flat money.
Several audiences may find this book beneficial: undergraduate students in economics and finance, students of international business, graduate students, students in executive programs who need to expand their knowledge of international finance, and practicing executives and managers—especially those who are employed by companies operating globally.


About the Author(s)

William D. Gerdes

William D. Gerdes, Clarke University, has a PhD in economics and has lectured for more than 40 years. He is the past president of the Missouri Valley Economic Association, and was the recipient of Ful…

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Pub Date

March 15, 2018





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