Acclaimed for its clarity, Exchange Rates and International Finance provides an approachable guide to the causes and consequences of exchange rate fluctuations, enabling you to grasp the essentials of the theory and its relevance to these major events in currency markets.
The orientation of the book remains towards exchange rate determination, with particular emphasis given to the contributions of modern finance theory.
This sixth edition of this established text addresses the impact of the global financial crisis.
1 Introduction
2 Prices in the open economy: purchasing power parity
3 Financial markets in the open economy
4 Open economy macroeconomics
5 Flexible prices: the monetary model
6 Fixed prices: the Mundell-Fleming model
7 Sticky prices: the Dornbusch model
8 Portfolio balance and the current account
9 Currency substitution
10 General equilibrium models
11 Market efficiency and rational expectations
13 The risk premium
14 Target zones
15 Crises and credibility
16 Optimum currency areas, monetary union and the eurozone
17 Heterogeneous expectations and scapegoat models
18 Order flow analysis
19 A certain uncertainty: nonlinearity, cycles and chaos
20 Conclusions
