Many companies today are competing in a global market. They make their decisions in an international context and are therefore directly affected by developments in world markets and the economic and monetary policy interventions behind them. A key objective of the book is to illustrate and explain the cross-border economic effects and interconnections. It aims to help the reader assess the core issues of international economic policy. How do monetary and fiscal measures work in open economies? What are the advantages and disadvantages of exchange rate systems with flexible or fixed rates? What are the arguments for and against the formation of unified currency areas? What causes currency and financial crises, and what dangers are associated with them? What roles do supranational institutions have?.