Principles of International Finance and Open Economy Macroeconomics

Cristina Terra is professor of economics at ESSEC Business School. PhD in economics from Princeton University, she has taught in France, Brazil, and the United States. She has been Director of École Doctorale Économie Management et Mathématiques de Cergy at Université de Cergy-Pontoise, and Director of Graduate Studies at Fundação Getulio Vargas, Brazil. Her mains research interests are International Economics and Development Economics, with several articles published in international economic journals, such as Journal of International Economics, Journal of Development Economics, The Quarterly Journal of Economics, among others. She is member of the editorial board of Journal of Applied Economics and an associate researcher at THEMA and CEPII.

1 Introduction: Overview of the Book ContentPART I: Definitions2 How to Measure International Transactions3 Foreign Exchange Market

PART II: Current Account and Real Exchange Rate4 What is the Optimal Level of the Current Account?5 Equilibrium Real Exchange Rate

PART III: Determination of the Nominal Exchange Rate6 Money and Exchange Rate in the Long Run7 Macroeconomic Policies and Exchange Rates in the Short Run8 Portfolio Diversification and Capital Flows

PART IV: Crises and Exchange Rate Policy9 Currency Crises10 Exchange Rate Regimes11 Political Economy of Exchange Rate Policy