Synopses & Reviews
Professor Rødseth provides a broad survey of open economy macroeconomics within a unified framework. This upper-level book reviews the theories employed by ministries of finance, central banks and financial institutions that form the basis for most quantitative models of open economies. It also points out the limitations of these theories and gives an update on recent research. The emphasis is on how the nature of the markets for foreign exchange and for exports and imports sets the stage for government policy and determines the macroeconomic effects of external and internal shocks.
Synopsis
Advanced textbook offering a broad survey of open economy macroeconomics within a unified framework.
Table of Contents
1. The foreign exchange market; 2. Portfolio choice, risk premia and capital mobility; 3. Money; 4. The monetary theory of the exchange rate; 5. The extremely open economy; 6. Home and foreign goods; 7. Traded and non-traded goods; 8. Alternative market structures, purchasing power parity and monopolistic competition; 9. International interactions; 10. Exchange rate policy.