List of contributors; Acknowledgments; Introduction and overview Richard J. Herring; 1. Macroeconomic determinants of real exchange risk William H. Branson; Perspective: on exchange rate analysis and foreign exchange risk Marina v. N. Klein; 2. Modeling exchange rate fluctuations and international disturbances Lawrence R. Klein; Perspective: problems in modeling international risks Peter B. Kenen; 3. International portfolio diversification Haim Levy and Marshall Sarnat; perspective: international portfolio diversification: a practitioner's point of view Henk A. Klein Haneveld; 4. The evaluation and use of foreign exchange rate forecasting services John F. O. Bilson; 5. Foreign currency accounting and its transition Yuji Ijiri; Perspective: some informal remarks on debt management and liquidity Eugene H. Rotberg; Perspective: managing foreign exchange exposure Harry Taylor; Index.