Floating exchange rates : theories and evidence /Ronald MacDonald

Cover; Half Title; Title; Copyright; Dedication; Contents; Preface; 1 Introduction: The Case for Flexible Exchange Rates and Some Stylized Facts from the Recent Experience with Floating Exchange Rates; 2 Some Basic Exchange Rate Concepts; Part 1: Theories; 3 The Mundell-Fleming Model and Some Extensions; 4 The Sticky-Price Monetary Model: Exchange Rate Overshooting and Exchange Rate Undershooting; 5 The Sticky-Price Monetary Model: Rational Expectations, Oil and Inflation; 6 The Exchange Rate as an Asset Price and the Flexible Price Monetary Approach to the Exchange Rate. 7 Monetary Currency Substitution Models and Wealth Dynamics8 The Portfolio Balance Approach to the Exchange Rate; Part 2: Evidence; 9 Some Econometric Evidence on Reduced-Form Asset Approach Exchange Rate Equations; 10 The Efficient Markets Hypothesis and the Forward Market for Foreign Exchange; 11 Spot Market Efficiency, Interest Parity and Purchasing Power Parity: Some Empirical Evidence; 12 The Role of New Information in Foreign Exchange Markets; Part 3: Topics; 13 Dual Exchange Rate Systems; 14 Foreign Exchange Market Intervention; 15 The Exchange Rate and the Wage-Price Nexus. 16 The Appreciation of the US Dollar, 1980-198517 Summary and Conclusions; References; Index.

In summary, the book is valuable as a textbook both at the advanced undergraduate level and at the graduate level. It is also very useful for the economist who wants to be brought up-to-date on theoretical and empirical research on exchange rate behaviour.'' ""Journal of International Economics