The Economics of Exchange Rates

Presents recent developments in theory and empirics of exchange rate economics.

Lucio Sarno (Author), Mark P. Taylor (Author), Jeffery A. Frankel (Foreword by)

9780521485845, Cambridge University Press

Paperback, published 9 January 2003

327 pages
24.4 x 17 x 2 cm, 0.687 kg

'Sarno and Taylor develop carefully all the exchange-rate research issues of the last 20 years - from historical background through modern-methods applications up to empirical results. The Economics of Exchange Rates will be indispensable on the bookshelves of academics and international policymakers.' Robert P Flood, Editor, IMF Staff Papers

In the last few decades exchange rate economics has seen a number of developments, with substantial contributions to both the theory and empirics of exchange rate determination. Important developments in econometrics and the increasingly large availability of high-quality data have also been responsible for stimulating the large amount of empirical work on exchange rates in this period. Nonetheless, while our understanding of exchange rates has significantly improved, a number of challenges and open questions remain in the exchange rate debate, enhanced by events including the launch of the Euro and the large number of recent currency crises. This volume provides a selective coverage of the literature on exchange rates, focusing on developments from within the last fifteen years. Clear explanations of theories are offered, alongside an appraisal of the literature and suggestions for further research and analysis.

1. Introduction
2. Foreign exchange market efficiency
3. Purchasing power parity and the real exchange rate
4. Exchange rate determination: theories and evidence
5. New open economy macroeconomics
6. Currency unions, pegged exchange rates, and target zone models
7. Official intervention in the foreign exchange market
8. Models of currency crisis and speculative attack
9. Foreign exchange market microstructure.

Subject Areas: Political economy [KCP], International finance [KCLF], International economics [KCL], Monetary economics [KCBM], Economics, finance, business & management [K]