Exchange rate economics : theories and evidence
Abstract
Description
1 Introduction: some basic concepts and stylised facts and the case for (and against) floating exchange rates; 2 Purchasing power parity and the PPP puzzle; 3 The economics of the PPP puzzle; 4 The flexible price monetary approach to the exchange rate; 5 The sticky-price monetary model; 6 The monetary approach to the exchange rate: an empirical perspective; 7 Currency substitution models and the portfolio balance approach to the exchange rate; 8 Real exchange rate determination: theory and evidence; 9 Equilibrium exchange rates: measurement and misalignment; 10 The new open economy macroeconomics and exchange rate behaviour...