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Exchange Rate Economics: Theories and Evidenceby: Ronald Macdonald
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Abstract_Exchange Rate Economics: Theories and Evidence_ is the second edition of_Floating_ _Exchange Rates: Theories and Evidence_ and builds on thesuccessful content and structure of the previous edition, but has beencomprehensively updated and expanded to include additional literature on thedetermination of both fixed and floating exchange rates.Core topics covered include: * the purchasing power parity hypotheses and the PPP puzzle * the monetary and portfolio-balance approaches to exchange rates * new open economy macroeconomics approach to exchange rates * the determination of exchange rates in target zone models and speculativeattack models._Exchange Rate Economics: Theories and Evidence_ also includes extensivediscussion of recent econometric work on exchange rates with a particularfocus on equilibrium exchange rates and measuring exchange rate misalignment,as well as discussion on the non-fundamentals-based approaches to exchangerate behaviour, such as the market microstructure approach.The book will appeal to academics and postgraduate students with an interestin all aspects of international finance and will also be of interest topractitioners interested in issues of equilibrium exchange rates and theforecastability of currencies in terms of macroeconomic fundamentals.
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