Currencies, Capital Flows and Crises

A Post Keynesian Analysis of Exchange Rate Determination

Business & Finance, Economics, Foreign Exchange
Cover of the book Currencies, Capital Flows and Crises by John T. Harvey, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: John T. Harvey ISBN: 9781135969097
Publisher: Taylor and Francis Publication: January 13, 2009
Imprint: Routledge Language: English
Author: John T. Harvey
ISBN: 9781135969097
Publisher: Taylor and Francis
Publication: January 13, 2009
Imprint: Routledge
Language: English

Breaking from conventional wisdom, this book provides an explanation of exchange rates based on the premise that it is financial capital flows and not international trade that represents the driving force behind currency movements. John T. Harvey combines analyses rooted in the scholarly traditions of John Maynard Keynes and Thorstein Veblen with that of modern psychology to produce a set of new theories to explain international monetary economics, including not only exchange rates but also world financial crises.

In the book, the traditional approach is reviewed and critiqued and the alternative is then built by studying the psychology of the market and balance of payments questions. The central model has at its core Keynes’ analysis of the macroeconomy and it assumes neither full employment nor balanced trade over the short or long run. Market participants’ mental model, which they use to forecast future exchange rate movements, is specified and integrated into the explanation. A separate but related discussion of currency crises shows that three distinct tension points emerge in booming economies, any one of which can break and signal the collapse. Each of the models is compared to post-Bretton Woods history and the reader is shown exactly how various shifts and adjustments on the graphs can explain the dollar’s ups and downs and the Mexican (1994) and Asian (1987) crises.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Breaking from conventional wisdom, this book provides an explanation of exchange rates based on the premise that it is financial capital flows and not international trade that represents the driving force behind currency movements. John T. Harvey combines analyses rooted in the scholarly traditions of John Maynard Keynes and Thorstein Veblen with that of modern psychology to produce a set of new theories to explain international monetary economics, including not only exchange rates but also world financial crises.

In the book, the traditional approach is reviewed and critiqued and the alternative is then built by studying the psychology of the market and balance of payments questions. The central model has at its core Keynes’ analysis of the macroeconomy and it assumes neither full employment nor balanced trade over the short or long run. Market participants’ mental model, which they use to forecast future exchange rate movements, is specified and integrated into the explanation. A separate but related discussion of currency crises shows that three distinct tension points emerge in booming economies, any one of which can break and signal the collapse. Each of the models is compared to post-Bretton Woods history and the reader is shown exactly how various shifts and adjustments on the graphs can explain the dollar’s ups and downs and the Mexican (1994) and Asian (1987) crises.

More books from Taylor and Francis

Cover of the book Kasztner's Crime by John T. Harvey
Cover of the book The Director's Idea by John T. Harvey
Cover of the book Double Jeopardy by John T. Harvey
Cover of the book Online Catholic Communities by John T. Harvey
Cover of the book Against Extinction by John T. Harvey
Cover of the book Centuries of Genocide by John T. Harvey
Cover of the book Innovation in the Public and Nonprofit Sectors by John T. Harvey
Cover of the book The Routledge Handbook of Anthropology and the City by John T. Harvey
Cover of the book Bangladesh by John T. Harvey
Cover of the book Accounting Essentials for Hospitality Managers by John T. Harvey
Cover of the book Dying Empire by John T. Harvey
Cover of the book Managing the Pressures of Teaching by John T. Harvey
Cover of the book Fields of Change among the Iteso of Kenya by John T. Harvey
Cover of the book Managing High Risk Sex Offenders in the Community by John T. Harvey
Cover of the book Potboilers by John T. Harvey
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy