International Monetary Economics

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-payments behavior; and the description of current and prospective arrangements for multicountry cooperation in Europe and elsewhere. These broad topics are 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 floating exchange 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 a full chapter on the European Monetary System, making this text ideal for both economic and finance courses that specifically focus on international economics.McCallum, Bennett T. is the author of 'International Monetary Economics' with ISBN 9780195094947 and ISBN 0195094948.