Cover -- Contents -- List of Figures and Tables -- Foreword -- 1 Global Investing -- Types of Investing -- Country Analysis -- Principles of Investing -- Our Approach -- Further Reading -- 2 Economic Indicators -- Learning Objectives -- Gross Domestic Product -- Inflation -- Per Capita Figures -- Income Distribution -- US Dollar Equivalents -- Is Gross Domestic Product the Best Measure of a Nation's Health? -- Unemployment -- Interest Rates -- Conclusion -- Further Reading -- 3 A Frame of Reference: The Washington Consensus -- Learning Objectives -- A Brief Historical Background -- The Washington Consensus -- More Detail about the Criteria -- The Principles in Action -- Criticisms of the Washington Consensus -- How we use the Criteria -- The Consensus and the World Financial Crisis -- Conclusion -- Further Reading -- 4 Evaluating Governance and Culture -- Learning Objectives -- What do Governments do? -- Why Institutions Matter -- Summary of Governance -- Why Culture Matters -- Summary of Culture -- Conclusion -- Further Reading -- 5 Evaluating Fiscal Policy -- Learning Objectives -- Budget of the United States Government -- National Debt -- Economics of the Budget -- Budget Process in the United States -- Measuring Government Risk -- Conclusion -- Further Reading -- 6 Evaluating Monetary Policy -- Learning Objectives -- What is Money? -- A Brief History of Banking -- The United States Central Bank -- What does a Central Bank do? -- How do the Policy Tools Work? -- What Happens at the Fed? -- Confidence -- How does the Central Bank Relate to the Treasury? -- Measuring Central Bank Risk -- Conclusion -- Further Reading -- 7 Evaluating International Transactions: The Balance of Payments -- Learning Objectives -- The Importance of Reserves -- Accounts in the Balance of Payments -- Accounting Enters the Picture -- Balance of Payments as Flows.

Economic Implications of the Balance of Payment Figures -- Measuring Balance of Payment Risk -- Managing the Balance of Payments -- Confidence, Again -- Conclusion -- Further Reading -- 8 Currencies -- Learning Objectives -- What is an Exchange Rate? -- Purchasing a French Government Security -- Appreciation and Depreciation -- Why do Exchange Rates Change? -- Exporters and Importers -- Predicting Exchange Rates -- Conclusion -- Further Reading -- 9 Managing Currency Risk -- Learning Objectives -- The French Security Investment -- Hedging Currency Risk -- Is Hedging Always Necessary? -- What Happens to Risk? -- Derivatives -- The 2008 Financial Crisis -- Conclusion -- Further Reading -- Summary of Risk Measures -- Index.