Description

Acclaimed for its clarity, Exchange Rates and International Finance provides an approachable guide to the causes and consequences of exchange rate fluctuations, enabling you to grasp the essentials of the theory and its relevance to these major events in currency markets.

 

The orientation of the book remains towards exchange rate determination, with particular emphasis given to the contributions of modern finance theory.

 

This edition of this established text addresses the impact of the global financial crisis.

New to this Edition

• New to this edition

  • New chapter on Scapegoat Models
  • Extended coverage on risk, global financial crisis, forecasting issues (Meese and Rogoff), factor models and the latest developments in the Eurozone
  • Chapters re-ordered to improve structure and flow of topics
  • Inclusion of FT articles and vignettes, illustrating real-world examples with accompanying questions
  • Learning outcomes
  • Updated reading guides
  • Improved PowerPoint slides and ‘bank of questions’ for lecturers

Table of Contents

• 1 Introduction   
• 2 Prices in the open economy: purchasing power parity
• 3 Financial markets in the open economy
• 4 Open economy macroeconomics
• 5 Flexible prices: the monetary model
• 6 Fixed prices: the Mundell–Fleming model
• 7 Sticky prices: the Dornbusch model
• 8 Portfolio balance and the current account
• 9 Currency substitution
• 10   General equilibrium models
• 11   Market efficiency and rational expectations
• 13   The risk premium
• 14   Target zones
• 15   Crises and credibility
• 16   Optimum currency areas, monetary union and the eurozone
• 17   Heterogeneous expectations and scapegoat models
• 18   Order flow analysis
• 19   A certain uncertainty: nonlinearity, cycles and chaos
• 20   Conclusions

Back Cover

Acclaimed for its clarity, Exchange Rates and International Finance provides an approachable guide to the causes and consequences of exchange rate fluctuations, enabling you to grasp the essentials of the theory and its relevance to major events in currency markets.

 

The sixth edition appears against the background of a world only just recovering from the worst financial collapse in modern history and the ongoing crisis in the Eurozone. Since the last edition, this widely-used textbook has been extensively revised and restructured, with the addition of new material to take account of the most important events of recent years.

NEW TO THE SIXTH EDITION

·    A new chapter on heterogeneous information, the exchange rate disconnect puzzle and the scapegoat model

·    Extended coverage of risk and the currency carry trade

·    New material on the 2008 banking crisis

·    Extended coverage of the Eurozone crisis

·    Discussion of China – US trade relations

 

This book is ideal for students of international finance, international macroeconomics or international money as a part of an economics or business programme at advanced undergraduate, MBA or specialist Masters levels.

 

Laurence Copeland is Emeritus Professor of Finance and Director of the Investment Management Research Unit at Cardiff University, UK.