Synopses & Reviews
This book provides a coherent account of traditional and modern theories of exchange rate determination and the results of international monetary movements. Focusing on the links between nominal exchange rate determination and the effects on the real economy, including necessary stabilization policies, this text provides a stimulating introduction to international monetary economics. The book includes a substantial section extending the treatment of internal and external stabilization and adjustment policies to developing countries and transitional economies, as well as an analysis of the role of policy in industrialized nations and within monetary unions. Covering a complete course in international monetary economics, this book is written in a clear and concise style suitable for all students. Author Emil-Maria Claassen also presents much useful data on the latest econometric techniques.
Description
Includes bibliographical references (p. 301-312) and index.
Table of Contents
Introduction
The Present Exchange Rate System in the World Economy
Part One: The Financial Approach to the Exchange Rate
The Monetary Approach to Exchange Rate: Purchasing Power Parity
The Monetary Approach to Exchange Rate: Interest Rate Parity
The Portfolio Approach to Exchange Rate: Interest Rate Parity with Risk Premiums
Part Two: The Macroeconomic Approach to the Real Exchange Rate
The Nature of the Real Exchange Rate
The External Relative Price of Tradable Goods
The Internal Relative Price of Tradable Goods
Part Three: Policy Issues: External Equilibrium, Integration, and the Second-Third World
Industrialized Countries: Internal-External Equilibrium
Integration: Real Capital Markets and Monetary Unions
Developing Countries in Post-Socialist Countries