ABSTRACT
The worldwide deregulation movement of the 1980s and the resultant globalization of financial markets have led to increased efficiency in the utilization of financial capital and direct investments around the world, but also to greater interdependence of financial markets and to the development of many new financial instruments to meet changed needs and conditions. Furthermore, they pointed to the crucial need to fully understand the implications of recent changes for the functioning of the present international financial and economic systems. This volume addresses some of these important issues. Specifically, as the title indicates, it deals with the effect of recent changes in the international economy on the operation of foreign exchange markets, capital markets, and international banking in the 1990s. The volume includes the most important papers on international finance presented at the first international meeting of the International Trade and Finance Association held in cooperation with the Ecole International des Affaires in Marseilles, France, from 31 May to 2 June 1991.
