International Economics II: International Monetary Theory and Open-Economy Macroeconomics

Gandolfo, Giancarlo

Brossura

ISBN 10: 3540586873 ISBN 13: 9783540586876

Casa editrice: Springer Verlag, 1995

This second volume covers all the conventional topics of international monetary theory and open-economy macroeconomics, and a lot more besides. Gandolfo treats such further concepts as the theory of monetary integration and the European monetary union, foreign exchange crises and the Tobin tax, theory of games and international policy coordination.
It follows the "two-tier" structure of the first volume, and, thanks to its self-contained treatment, may equally be used as a reference book.

Contenuti:

10 The foreign exchange market.- 10.1 Introduction.- 10.2 The spot exchange market.- 10.3 The forward exchange market and swap transactions.- 10.3.1 Introduction.- 10.3.2 Various covering alternatives; forward premium and discount.- 10.3.3 Covered interest arbitrage.- 10.3.4 Swap transactions.- 10.4 The transactors in the foreign exchange market.- 10.4.1 A digression on speculation.- 10.4.2 Other transactors.- 10.5 The various exchange-rate regimes.- 10.5.1 The two extremes.- 10.5.2 The Bretton Woods system.- 10.5.3 Other limited-flexibility systems.- 10.5.4 The current nonsystem.- 10.6 Euro-dollars and Xeno-currencies: an introduction.- 10.7 International interest-rate parity conditions, and the foreign exchange market.- 10.7.1 Covered interest parity (CIP).- 10.7.2 Uncovered interest parity (UIP).- 10.7.3 Uncovered interest parity with risk premium.- 10.7.4 Real interest parity.- 10.7.5 Efficiency of the foreign exchange market.- 10.7.6 Perfect capital mobility, perfect asset substitutability, and interest parity conditions.- A.10.1 N-point arbitrage.- A.10.2 On the measure of the approximation error of the interest differential.- A.10.3 Marginal conditions and portfolio selection theory in speculative equilibrium.- A.10.3.1 Proof of the marginal conditions.- A.10.3.2 Marginal conditions and portfolio selection theory.- A.10.4 Expectations, interest, parity and market efficiency.- A.10.4.1 Rational expectations and market efficiency.- A.10.4.2 The Peso problem.- A.10.4.3 The Siegel paradox.- References.- 11 Balance of payments and national accounts.- 11.1 Balance-of-payments accounting and presentation.- 11.1.1 Introduction.- 11.1.2 Accounting principles.- 11.1.3 Standard components.- 11.1.3.I Current account.- 11.1.3.II Capital account.- 11.2 The meaning of “surplus”, “deficit”, and “equilibrium” in the balance of payments.- 11.3 The balance of payments and national accounts.- 11.4 The international adjustment process and open-economy macroeconomics: an overview.- A.11.1 The presentation of the US balance of payments.- A.11.2 Illegal transactions in the balance of payments.- References.- 12 The role of the exchange rate in the adjustment process in a partial equilibrium framework.- 12.1 Introduction.- 12.2 Critical elasticities and the so-called Marshall-Lerner condition.- 12.2.1 The balance of payments in domestic currency.- 12.2.2 The balance of payments in foreign currency.- 12.2.3 Partial vs total elasticities.- 12.2.4 A note on terminology.- 12.3 The equilibrium exchange rate; multiple equilibria and stability.- 12.3.1 Derivation of the demand and supply schedules; stability.- 12.3.2 Multiple equilibria.- 12.3.3 Monetary authorities’ intervention to peg the exchange rate.- 12.4 Interrelations between the spot and forward exchange rate.- 12.4.1 The various excess demand schedules.- 12.4.2 Forward market equilibrium and the spot rate.- 12.4.3 The monetary authorities’ intervention.- A.12.1 The critical elasticities condition.- A. 12.1.1 The simple case.- A.12.1.2 The general case.- A.12.1.3 Effects on the terms of trade.- A. 12.2 The stability of the foreign exchange market.- A. 12.3 A framework for the simultaneous determination of the spot and forward exchange rate.- References.- 13 The role of income changes in the adjustment process.- 13.1 Introduction.- 13.2 The multiplier without foreign repercussions and the balance of payments.- 13.2.1 The basic model.- 13.2.2 Balance-of-payments adjustment in the case of an exogenous increase in exports.- 13.2.3 Balance-of-payments adjustment in the case of an exogenous increase in imports.- 13.3 Foreign repercussions.- 13.3.1 A simplified two-country model.- 13.3.2 An alternative graphic representation and stability analysis.- 13.3.3 Multipliers and balance-of-payments adjustment.- 13.4 Intermediate goods and the multiplier.- 13.4.1 Introductory remarks.- 13.4.2 Different requirements of intermediate goods.- 13.4.3 Identical requirements of intermediate goods.- 13.4.4 Some empirical results.- A.13.1 The multiplier without foreign repercussions.- A.13.1.1 Basic results.- A.13.1.2 The balance of payments.- A.13.2 The multiplier with foreign repercussions.- A.13.2.1 The basic model.- A.13.2.2 Stability analysis.- A.13.2.3 The various multipliers: a comparison.- A.13.2.4 The balance of payments.- A.13.3 Foreign repercussions in a n-country model.- A.13.3.1 The general model.- A.13.3.2 Stability analysis.- A.13.3.3 Comparative statics. A comparison between the various multipliers.- A.13.3.4 The balance of payments.- A. 13.4 Concluding remarks. The empirical relevance of the foreign multiplier.- References.- 14 The absorption approach and interactions between exchange rate and income in the adjustment process.- 14.1 The absorption approach.- 14.2 Elasticities versus absorption: controversy and synthesis.- 14.3 A dynamic model of interaction between exchange rate and income in the adjustment process.- 14.3.1 The basic model.- 14.3.2 A graphic representation.- 14.3.3 Stability and comparative statics.- 14.3.4 The J-curve.- A.14.1 Alexander’s synthesis.- A.14.2 A simplified version of the Laursen and Metzler model.- A.14.2.1 The RR and BB schedules.- A.14.2.2 The dynamics of the system.- A.14.2.3 Comparative statics.- A.14.3 The J-curve.- A.14.4 The original two-country version of the Laursen and Metzler model.- A.14.4.1 The basic model.- A.14.4.2 Stability.- A.14.4.3 Comparative statics.- References.- 15 Money and other assets in the adjustment process under fixed exchange rates.- 15.1 Introduction.- 15.2 The classical (Humean) price-specie-flow mechanism.- 15.2.1 Introductory remarks.- 15.2.2 A simple model of the classical theory.- 15.2.3 Concluding remarks.- 15.3 The monetary approach to the balance of payments.- 15.3.1 The basic propositions and implications.- 15.3.2 A simple model.- 15.3.3 Concluding remarks.- 15.4 Macroeconomic equilibrium in a standard Keynesian-type open model.- 15.4.1 Introductory remarks: The Mundell-Fleming model.- 15.4.2 Graphic representation of the equilibrium conditions.- 15.4.3 Simultaneous real, monetary and external equilibrium; stability.- 15.4.3.1 Observations and qualifications.- 15.4.4 Comparative statics.- 15.5 Monetary and fiscal policy for external and internal balance. The assignment problem. The coordination problem.- 15.5.1 Introductory remarks.- 15.5.2 Internal and external balance and the assignment problem.- 15.5.2.1 Observations and qualifications.- 15.5.3 The policy coordination problem across countries.- 15.6 Portfolio equilibrium in an open economy.- 15.6.1 Introduction.- 15.6.2 Asset stock adjustment in a partial equilibrium framework.- 15.6.3 Portfolio equilibrium and macroeconomic equilibrium.- 15.6.3.1 Introductory remarks.- 15.6.3.2 A simple model.- 15.6.3.3 Momentary and long-run equilibrium.- A.15.1 A formal interpretation of the classical theory.- A.15.2 The monetary approach to the balance of payments.- A.15.2.1 A simple model.- A.15.2.2 A two-country model.- A.15.2.3 The effects of a devaluation.- A.15.3 Macroeconomic equilibrium in a standard Keynesian-type open model.- A.15.3.1 The slopes of the various schedules.- A.15.3.2 The study of dynamic stability.- A.15.3.3 Comparative statics.- A.15.4 Monetary and fiscal policy and internal and external balance.- A.15.4.1 The static model.- A.15.4.2 The assignment problem.- A.15.5 The problem of coordination.- A.15.5.1 The basic model.- A.15.5.2 International coordination compared to simple pairing.- A.15.5.3 International coordination compared to internal coordination.- A.15.6 Portfolio equilibrium in an open economy.- A.15.6.1 The case of partial equilibrium.- A.15.6.2 Portfolio and macroeconomic equilibrium.- A.15.6.2.1 The dynamics of the long-run equilibrium.- A.15.6.2.2 The stability conditions.- References.- 16 Money and other assets in the adjustment process under flexible exchange rates.- 16.1 Introduction.- 16.2 The critical elasticities condition is neither necessary nor sufficient.- 16.2.1 The basic model.- 16.2.2 Non-necessity and non-sufficiency of the critical elasticities condition.- 16.3 Monetary and fiscal policy for internal and external balance in the standard Keynesian macroeconomic model, and the choice of instruments.- 16.3.1 Perfect capital mobility.- 16.3.2 The normal case.- 16.4 The alleged insulating power of flexible exchange rates and the international propagation of disturbances.- 16.4.1 The alleged insulating power.- 16.4.2 The propagation of disturbances in a simple model.- 16.4.3 The propagation of disturbances in a two-country model.- 16.5 The new Cambridge school of economic policy.- 16.5.1 Introductory remarks.- 16.5.2 The basic model.- 16.5.3 Observations and qualifications; other versions.- 16.6 Portfolio and macroeconomic equilibrium in an open economy.- 16.6.1 Introductory remarks.- 16.6.2 The basic model.- 16.6.3 Static expectations.- 16.6.4 Rational expectations and overshooting.- A.16.1 The critical elasticities condition is neither necessary nor sufficient.- A.16.2 On the choice of policy instruments.- A.16.2.1 Fiscal policy.- A.16.2.2 Monetary policy.- A.16.3 On the alleged insulating power of flexible exchange rates and the propagation of disturbances.- A.16.3.1 The one-country model.- A.16.3.2 The two-country model.- A.16.4 The new Cambridge school.- A.16.4.1 The basic model.- A.16.4.2 An extension.- A.16.5 Portfolio and macroeconomic equilibrium.- A.16.5.1 The basic model.- A.16.5.2 Static expectations.- A.16.5.2.1 Short-run equilibrium.- A.16.5.2.2 Long-run equilibrium.- A.16.5.3 Rational expectations.- A.16.6 Forward market intervention.- References.- 17 International capital movements and other problems.- 17.1 Introduction.- 17.2 Short-term capital movements and foreign-exchange speculation.- 17.2.1 The main types of short-term capital movements.- 17.2.2 Flexible exchange rates and speculation.- 17.3 Long-term capital movements.- 17.4 The transfer problem.- 17.4.1 Introductory remarks.- 17.4.2 The traditional setting.- 17.4.3 Observations and qualifications.- 17.5 Exports, growth, and the balance of payments.- 17.5.1 Export-led growth.- 17.5.2 Growth and the balance of payments.- A.17.1 Speculation.- A.17.2 The transfer problem.- ...

Product Description:

Book by Gandolfo Giancarlo