This collection investigates the mechanics of foreign exchange rate determination through the lens of the asset-market approach. Authors Harry G. Johnson and Jacob A. Frenkel, both prominent economists, synthesize theoretical frameworks with empirical evidence to explain how exchange rates function within flexible regimes. The text provides a rigorous examination of monetary and fiscal policy impacts on currency valuation, utilizing historical data and mathematical modeling to support their arguments.

Experts recognize this work as a foundational text for understanding the transition toward modern monetary approaches to exchange rates. Readers frequently note the technical density of the prose, which assumes a solid background in macroeconomic theory.