International economics Trade and money International monetary analysis focuses on the monetary side of the international economy That is, financial transactions such as foreign purchases of U.S. dollars Example: The dispute over whether the foreign exchange value of the dollar should be allowed to float freely or be stabilized by government action Copyright C 2003 Pearson Education, Inc Slide 1-10Copyright © 2003 Pearson Education, Inc. Slide 1-10 ▪ International monetary analysis focuses on the monetary side of the international economy. • That is, financial transactions such as foreign purchases of U.S. dollars. – Example: The dispute over whether the foreign exchange value of the dollar should be allowed to float freely or be stabilized by government action International Economics: Trade and Money