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same to that abroad, introduced into China ever since 1990s. III. Economics amp。 Finance Arbitrage vs. Demand amp。 Supply ?Introduction 24 IV. International Finance What Is It About? ?International moary analysis focuses on the moary side of the international economy, a subfield of International Economics (Krugman and Obstfeld, 2020). ?The simultaneous realization of internal and external balances in an open economy, from the perspective of money and finance (Jiang and Yang, 2020). But in their point of view, International Finance is slightly different from open economy macroeconomics. ?Introduction 25 ?The moary and macroeconomic relations among countries. In this sense, International Finance is the equivalent to open economy macroeconomics and International Macroeconomics. But small differences do exist. Typically, International Finance focuses on the imbalances of payments in a moary economy, esp. the automatic adjustment mechanism and policy adjustments。 the relationships between balance of payments and other macroeconomic variables。 various exchange rate regimes and the determination of exchange rates。 issues of international financial markets and international moary system, such as currency crisis, debt issues and international policy coordination。 and international moary integration (Gandolfo, 2020). ?Introduction 26 Contents ?Theory on balance of payments Including elasticity approach, multiplier approach, absorption approach, and moary approach to balance of payment, etc. ?Exchange rate economics The determination of the exchange rate under a floating exchange rate regime, and the economics of fixed exchange rate regimes, such as the choice of exchange rate regimes, currency crisis, target zones theory, etc. ?Policy, policy mix amp。 policy coordination ?Introduction 27 Paradigms ?MF and MFD model。 Originator amp。 contributors: Mundell (1960。 1963。 1964)。 Fleming (1962)。 Dornbusch (1976). ?Intertemporal approach to the current account。 Originator amp。 contributors: Hamada (1969), etc. ?New open economy macroeics (NOEM) Originator amp。 contributors: Obstfeld and Rogoff (1995。 1996). ?Introduction 28 V. Course Outlines ?Introduction ?Theory of Balance of Payments ?Exchange Rate Economics ?Policies in the Open Economy ?Introduction 29 ?Appendix 30 International Finance Liu, Xiaohui SWUFE 31 ?Chinese Literature ? 斯蒂格利茨 [1993,姚開(kāi)