International Finance and Open-Economy Macroeconomics

Giancarlo Gandolfo has been Professor of International Economics at the University of Rome la Sapienza from 1974 to 2010, when he retired. Previously he taught Economics and Mathematical Economics at the Universities of Rome (1965-70) and Siena (1968-74). He has been visiting professor in various foreign universities. He is a member of the Accademia Nazionale dei Lincei, Rome, a research Fellow of CESifo, Munich, and holds a doctorate honoris causa from the University of Frankfurt. He is the author of over 190 publications and sits on the editorial board of several international journals. Daniela Federici is Professor of International Economics at University of Cassino and Southern Lazio. She earned her Laurea in Economics at the University of Rome La Sapienza and her Ph.D. in International Economics at Graduate Institute of International Studies, Geneva. Federici has published papers in leading international journals on topics such as exchange rate dynamics, international trade, and productivity growth. She has been research visiting at Columbia University, Stanford University, University of Illinois at Urbana-Champaign, and Pace University.

I Introduction.- International Finance and International Macroeconomics: An overview.- II The Basics.- The Foreign Exchange Market.- Exchange-Rate Regimes.- International Interest-Rate Parity Conditions.- The Balance of Payments.- real and Financial Flows in an Open Economy.- III The Approaches.- The Elasticity Approach.- The Multiplier Approach.- An Integrated Approach.- The Mundell-Fleming Model.- Policy Implications of the Mundell-Fleming Model.- IV Stock and Stock-Flow Approaches.- The Monetary Approach to the BP and Related Approaches.- Portfolio and Macroeconomic Equilibrium in an Open Economy.- Growth in an Open Economy.- V The Exchange Rate.- Exchange-Rate Determination.- Capital Movements, Speculation, and Currency Crises.- Fixed vs Flexible Exchange Rates.- VI The Intertemporal Approach.- The Intertemporal Approach, and the Real Exchange Rate.- Other Applications.- VII International Monetary Integration.- International Monetary Integration.- The European Monetary Union.- VIIIProblems of the International Monetary (Non)System.- Key Events in the Postwar International Monetary System.- International Liquidity, and Xeno-Markets.- Current Problems.