the analysis of international monetary systems that fix exchange rate remains an important subject. chapters 17 and 18 are devoted to the working of fixed-rate systems, chapter 19 to the debate over which system, fixed or floating rate, is better, and chapter 20 to the economics of currencies areas such as the european monetary union. for the time being, however, some of the world's most important exchange rate fluctuate minute and the role of changing exchange rate remains at the center of the international economics story. chapters 13 though 16 focus on the modern theory of floating exchange rates.