This book investigates the mechanisms governing the determination of foreign exchange rates and the operational characteristics of the foreign exchange market. Authors Harry G. Johnson and Jacob A. Frenkel, both prominent figures in international monetary economics, utilize their expertise to present the 'asset-market approach' to exchange rate analysis. By synthesizing theoretical frameworks with practical applications, the authors provide a structured methodology for understanding how currency values fluctuate in a flexible exchange rate system.

Experts recognize this work as a foundational text for understanding the shift toward asset-market models in international finance. Readers frequently note that while the prose is concise, it requires a solid grasp of fundamental economic principles to fully synthesize the arguments presented.