Exchange rates and exchange rate fluctuation continue to play an increasingly important role in all our lives. Exchange Rates and International Finance fifth edition provides a clear and concise guide to the causes and consequences of exchange rate fluctuations, enabling you to grasp the essentials of the theory and its relevance to major events in currency markets. The orientation of the book is towards exchange rate determination with particular emphasis given to the contributions of modern finance theory. Both fixed and floating exchange rate models and empirical results are explored and discussed.