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Description of Exchange Rates and International Finance

The second edition of this successful text accessible the theories and models, causes and consequences of exchange rate fluctuations.

Written in a clear and concise style it will enable readers to grasp the essentials of exchange rate theory. At the same time, the text never loses sight of the relevance of theory to the major events in currency markets. The orientation of the book is towards exchange rate determination, rather than policy issues, with particular emphasis given to the contributions of modern finance theory. both fixed and floating exchange rate models and empirical results are explored and discussed.

Key features to be noted are:

- A clear non-technical explanation of the issues, emphasizing intuitive explanations using a minimum of mathematics

- A demonstration of the links between macroeconomics and exchange rate determination

- A new chapter on the economics of currency unions, focusing on the proposed European Union but also looking at other instructive examples

- A chapter explaining the potential implications

Title Information

ISBN:

9780201624298

Pages:

446 pages

Format:

Paperback

Product Code:

0625

Publisher:

Addison Wesley

Published:

30/11/-0001

Edition:

2nd Edition

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Contents of Exchange Rates and International Finance

1. Introduction

Part One: The International Setting
2. Prices in the Open Economy: Purchasing Power Parity
3. The Financial Markets in the Open Economy
4. Open Economy Macroeconomics

Part Two: Exchange Rate Determination
5. Flexible Prices: The Monetary Model
6. Fixed Prices: The Mundell-Fleming Model
7. Sticky Prices: The Dornbush Model
8. Portfolio Balance and the Current Account
9. Currency Substitution
10. Optimum Currency Areas and Monetary Union

Part Three: A World of Uncertainty
11. Market Efficiency and Rational Expectations
12. The News Model and Exchange Rate Volatility
13. The Risk Premium
14. A Certain Uncertainty: Non-Linearity, Cycles and Chaos

Part Four: Conclusions
15. Conclusions