Exchange Rates and International Finance

Preface to the fifth edition Publishers' acknowledgements 1. Introduction PART 1: THE INTERNATIONAL SETTING 2. Prices in the open economy: purchasing power parity 3. Financial markets in the open economy 4.Open economy macroeconomics PART 2: EXCHANGE RATE DETERMINATION 5. Flexible prices: the monetary model 6. Fixed prices: the Mundell-Fleming model 7. Sticky prices: the Dornbush model 8. Portfolio balance and the current account 9. Currency substitution 10. General equilibrium models 11. Optimum currency areas and monetary union PART 3: A WORLD OF UNCERTAINTY 12. Market efficiency and rational expectations 13. The 'news' model and exchange rate volatility 14. Microstructure models 15. The risk premium PART 4: FIXED EXCHANGE RATES 16. A certain uncertainty: non-linearity, cycles and chaos 17. Target zones 18. Crises and credibility PART 5: CONCLUSIONS 19. Conclusions Appendix: list of symbols Bibliography Index