This book deals with the financial side of international economics and covers all aspects of international finance. Prof. Gandolfo has written what will be a classic in international finance. His erudition, expository and technical skills are combined to fulfill the needs of undergraduate and graduate students, researchers, and staff members in international economic organisations. The literary part is clear, and the underlying intuition of the arguments is stressed. This is followed by a mathematical analysis, which uses the state of the art techniques. In this manner the reader can go from the intuition-literary argument to the formal derivations and proofs. There are many books and articles by exponents of alternative points of view. I know of no other book that provides the scope, balance, objectivity and rigor of the book. (Professor Jerome L. Stein, Brown University)