Exchange Rate Economics [Paperback]

A lucid and relatively easy to comprehend survey of theories of exchange rate behaviour.Providing a wide-ranging survey of the different theories that attempt to explain the behavior of exchange rates, this text outlines the salient institutional characteristics of the modern foreign exchange market in the context of an evolving international monetary system.Providing a wide-ranging survey of the different theories that attempt to explain the behavior of exchange rates, this text outlines the salient institutional characteristics of the modern foreign exchange market in the context of an evolving international monetary system.This book describes and evaluates the literature on exchange rate economics. It provides a wide-ranging survey of the different theories that attempt to explain the behavior of exchange rates, and outlines the salient institutional characteristics of the modern foreign exchange market in the context of an evolving international monetary system. An important feature of the book is its emphasis throughout on the main policy issues relating to the stabilization of exchange rates. The level of exposition is relatively nontechnical, and will be intelligible to undergraduate students.Preface; 1. Introduction; PART I. HISTORICAL aND INSTITUTIONAL PERSPECTIVES: 2. Foreign exchange markets and the marketability of money; 3. Exchange rate arrangements and international monetary regimes; PART II. MODELS oF EXCHANGE RATE BEHAVIOR: 4. Exchange rates and national price levels; 5. Exchange rates and interest rates; 6. Exchange rates and the balance of payments; 7. News, revisions in expectations, and exchange rate dynamics; 8. Empirical estimates of structural exchange rate models; 9. New perspectives from optimizing models of realignments under fixed exchange rates; 10. New directions for conceptual models of flexible exchange rates; PART III. EXCHANGE RATE POLICY: 11. The choice of exchange rate arrangements; 12. Policy-oriented perspectives on exchange ratl“\