Exchange Rates and Global Financial Policies

Business & Finance, Economics, International Economics, Finance & Investing, Finance

• Author: Paul De Grauwe
• ISBN: 9789814513203
• Publisher: World Scientific Publishing Company
• Publication: January 21, 2014
• Imprint: WSPC
• Language: English

Exchange Rates and Global Financial Policies brings together research and work done by world-class economist Paul De Grauwe over the past two decades. Drawing inspiration from behavioural finance literature, De Grauwe covers topics such as exchange rate economics, monetary integration (with particular attention on the Eurozone), and international macroeconomics.

His work is categorised across three parts. The first part develops new theoretical and empirical approaches to exchange rate modelling. The second part features a collection of papers on the theory and empirical analysis of monetary unions. The final part contains criticism of mainstream macroeconomic models as well as proposed alternative modelling approaches.

Contents:

• Exchange Rate Economics:

  • Chaos in the Dornbusch Model of the Exchange Rate (Paul De Grauwe and Hans Dewachter)
  • Heterogeneity of Agents, Transactions Costs and the Exchange Rate (Paul De Grauwe and Marianna Grimaldi)
  • Exchange Rate Puzzles: A Tale of Switching Attractors (Paul De Grauwe and Marianna Grimaldi)
  • Exchange Rates in Search of Fundamentals: The Case of the Euro–Dollar Rate (Paul De Grauwe)
  • Exchange Rates and Fundamentals: A Non-Linear Relationship? (Paul De Grauwe and Isabel Vansteenkiste)
  • The Impact of FX Central Bank Intervention in a Noise Trading Framework (Michel Beine, Paul De Grauwe and Marianna Grimaldi)

• Monetary Integration:

  • Conditions for Monetary Integration: A Geometric Interpretation (Paul De Grauwe)
  • Is Europe an Optimum Currency Area? Evidence from Regional Data (Paul De Grauwe and Wim Vanhaverbeke)
  • Setting Conversion Rates for the Third Stage of EMU (Paul De Grauwe and Luigi Spaventa)
  • The Euro and Financial Crises (Paul De Grauwe)
  • What have We Learnt About Monetary Integration Since the Maastricht Treaty? (Paul De Grauwe)
  • The Governance of a Fragile Eurozone (Paul De Grauwe)
  • Do Asymmetries Matter for European Monetary Policy? (Yunus Aksoy, Paul De Grauwe and Hans Dewachter)

• Macroeconomics And Monetary Policy:

  • Is Inflation always and Everywhere a Monetary Phenomenon? (Paul De Grauwe and Magdalena Polan)
  • Monetary Policy and the Real Economy (Paul De Grauwe and Cláudia Costa Storti)
  • Lessons from the Banking Crisis: A Return to Narrow Banking (Paul De Grauwe)
  • The Scientific Foundation of Dynamic Stochastic General Equilibrium (DSGE) Models (Paul De Grauwe)
  • Animal Spirits and Monetary Policy (Paul De Grauwe)
  • Booms and Busts in Economic Activity: A Behavioral Explanation (Paul De Grauwe)

Readership: Graduate students and researchers in the fields of international economics and international finance.
Key Features:

• Cover a wide range of issues in international macroeconomics and international finance
• Use insights of behavioral economics making it possible to better understand macroeconomic dynamics