Besides traditional topics of international monetary theory and open-economy macroeconomics, this textbook also contains further concepts like the theory of monetary integration and the European monetary union, foreign exchange crises and the Tobin tax, theory of games and international policy coordination. The book has a unique "two-tier" structure, the text speaks directly to the undergraduate, the appendices are addressed to the graduate student and the researcher. The book can also be used as a reference book. The ample and balanced treatment of the various approaches and the clarity of exposition ensure that the reader gains a thorough grasp of theories, facts and policies.