International Monetary Economics

Hardcover | April 30, 1999

byBennett T. McCallum

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International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involvingexchange rates and balance-of-payments magnitudes; the construction and manipulation of a small but versatile model of exchange rate and balance-of-payments behavior; and the description of current and prospective arrangements for multicountry cooperation in Europe and elsewhere. These broad topicsare arranged in three main parts. In Part I the author presents basic concepts and a historical perspective on the US and global economy, with emphasis on the evolution of international monetary institutions since 1800. Part II introduces the basic analytical model -- usable with fixed and floatingexchange rates, in which capital mobility is complete, real exchange rates are variable, and investment spending is endogenous. In addition, there is a relatively long chapter devoted to dynamic analysis with rational expectations. And finally, Part III contains three chapters on policy, including afull chapter on the European Monetary System, making this text ideal for both economic and finance courses that specifically focus on international economics.

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From Our Editors

International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involving exchange rates and balance-of-payments magn...

From the Publisher

International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involvingexchange rates and balance-of-payments magni...

From the Jacket

International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involving exchange rates and balance-of-payments magn...

Bennett T. McCallum is at Carnegie Mellon University.

other books by Bennett T. McCallum

Format:HardcoverDimensions:280 pages, 9.29 × 5.98 × 0.91 inPublished:April 30, 1999Publisher:Oxford University Press

The following ISBNs are associated with this title:

ISBN - 10:0195094948

ISBN - 13:9780195094947

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Table of Contents

Part I1. IntroductionPreliminary RemarksU.S. Exchange Rates, 1947-1993U.S. Current Account, 1947-1993Alternative International ArrangementsA Look Ahead2. Exchange Rate ConceptsBilateral Rates: Spot and ForwardInterest ParityAverage Exchange RatesReal Exchange RatesPurchasing Power ParityPPP and Non-Traded GoodsU.S. Spot Rates, 1947-19933. Balance of Payments AccountsBasic ConceptsU.S. AccountsBOP and National Income AccountsAdditional Statistical Material4. Historical PerspectiveIntroductionThe Gold StandardFrom 1800 to 1914From 1918 to 1945Bretton Woods, 1947-1971Floating Exchange Rates, 1973-1993Part II5. A Basic Model: Building BlocksPreliminariesThe Open-Economy IS RelationThe Open-Economy LM FunctionTwo IdentitiesUncovered Interest ParityCompletion of the Model6. Long Run and Short Run AnalysisLong Run Analysis: Stationary StatesLong Run Analysis: Steady StatesShort Run AnalysisDiscussionRepresentation of Monetary Policy ActionsA Two-Country FrameworkAppendix7. Analysis with Fixed Exchange RatesLoss of Monetary AutonomyImpact and Stationary State AnalysisSteady State AnalysisImperfect Capital MobilityCurrent Account BalanceThe J-Curve EffectAppendix8. Expectations and Dynamic AnalysisIntroductionPreliminary AnalysisExpectationsRational ExpectationsAnalysis with Rational ExpectationsSolution ProcedureProperties of the Solution ProcessMore Realism in SpecificationA Model with Sticky PricesConclusionAppendix9. Empirical EvidenceIntroductionMoney Demand and Saving-Investment RelationsInterest ParityApparent Failure of UIPPrice Level StickinessLong-Run Purchasing Power ParityPart III10. Fixed vs. Floating Exchange RatesIntroductionMicroeconomic EfficiencyMacroeconomic FlexibilityRules vs. Discretion in Monetary PolicyRules, Discretion, Discipline, and Exchange RatesIntermediate ArrangementsConclusions11. The European Monetary SystemBackgroundThe EMS as of December 1991The Maastricht TreatyPost-Maastricht DevelopmentsAlternative Forms of Ecu12. International Policy CooperationIntroductionThe Case for CoordinationMacroeconomic Coordination, ContinuedQualificationsAttempts at Coordination, 1973-1993Optimal Currency AreasConcluding Remarks

From Our Editors

International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involving exchange rates and balance-of-payments magnitudes; the construction and manipulation of a small but versatile model of exchange rate and balance-of-payment behavior; and the description of current and prospective arrangements for multicountry cooperation in Europe and elsewhere.