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Days ago, International Finance, a book co-authored by Wang Jian, Professor of the School of Management and Economics (SME), The Chinese University of Hong Kong, Shenzhen (CUHK-Shenzhen) and Associate Director of the Shenzhen Finance Institute (SFI); Wang Xiao, Professor of the School of Management, University of Science and Technology of China; and Shi Jiao, Assistant Professor of the Peking University HSBC Business School (PHBS), was published by Peking University Press.

In International Finance, the three authors systematically introduced classic theories, models, and cases in the field of international finance and discussed their specific applications in China, based on the practical experience in China and other developing countries.

In terms of content, the book introduces the exchange rate, one of the most critical variables in international finance followed by a detailed balance of payments of a country and an analysis of the costs and benefits of financial globalization. It explores the effective combination of fiscal and monetary policies in the open economy of a country. It wraps up with a country’s choices of exchange rate regimes and possibilities for coordinating monetary policies against the global economic shocks facing each country.

After introducing the classic models, it specifically discusses how to use these models to analyze economic concerns in China, especially those arising from the dynamic process of China’s gradual opening-up. At the same time, a large number of data analysis cases are provided to guide readers to extract typical international financial facts from data and understand international financial theories with statistical and econometric tools.

The book can serve as a textbook for teaching international finance in regular higher educational institutions, a training material for party schools and cadres, or a reference book for readers who are interested in international finance.

About the Author

Wang Jian

Professor of the SME, CUHK-Shenzhen, Associate Director of the SFI, Advisor of Master of Finance at Tsinghua University PBC School of Finance, Member of the China Finance 40 Forum, and Ph.D. in Economics from the University of Wisconsin, the United States. Research field: International Finance Market and Monetary Policy.

Features of the Book

Focusing on the concerns facing developing countries from three perspectives:

First, in terms of theoretical framework, the book analyzes every policy option in the “Impossible Trinity” equally, carefully, and thoroughly with importance attached to the policy combination of fixed exchange rates and capital controls of developing countries;

Second, in terms of the presentation of data and cases, it prefers to utilize data from developing countries, especially China, to test and apply international financial theories; and

Third, in terms of dedicated chapters, it reviews the opportunities and risks the international capital market brings to developing countries from both theoretical and practical perspectives.

It follows the rules of international financial research, combines economic facts with models, and introduces the latest research results. The theoretical framework does not deviate from the classic models but creates a new approach. Through classic theories, profound and time-proven insights into the cause and effect of global capital flows can be gained, but in terms of application, restrictions on assumptions should be made based on national conditions. This is just the value of the book. 

It adds a large number of data analysis cases. These cases will guide readers to use statistical and econometric tools to extract typical facts about international finance from data and understand international finance theories.