Laurence Copeland, Cardiff University

Publisher: Financial Times Press
Copyright: 2005
Format: Paper; 512 pp

ISBN-10:	0273683063
ISBN-13:	9780273683063

Exchange rates and exchange rate fluctuation play an increasingly important role in all our lives. Exchange Rates and International Finance provides a clear and concise guide to the causes and consequences of exchange rate fluctuations, enabling the reader to grasp the essentials of theory and its relevance to major events in currency markets.

The orientation of the book is towards exchange rate determination with particular emphasis given to the contributions of modern finance theory.  Both fixed and floating exchange rate models and empirical results are explored and discussed.

Suitable for advanced level undergraduates and postgraduates. It may also be suitable for some MBA modules.

Preface to the fourth edition
Publishers' acknowledgements

1. Introduction

PART 1: THE INTERNATIONAL SETTING
2. Prices in the open economy: purchasing power parity
3. Financial markets in the open economy
4. Open economy macroeconomics

PART 2: EXCHANGE RATE DETERMINATION
5. Flexible prices: the monetary model
6. Fixed prices: the Mundell-Fleming model
7. Sticky prices: the Dornbush model
8. Portfolio balance and the current account
9. Currency substitution
10. General equilibrium models
11. Optimum currency areas and monetary union

PART 3: A WORLD OF UNCERTAINTY
12. Market efficiency and rational expectations
13. The 'news' model and exchange rate volatility
14. The risk premium

PART 4: FIXED EXCHANGE RATES
15. A certain uncertainty: non-linearity, cycles and chaos
16. Target zones
17. Crises and credibility

PART 5: CONCLUSIONS
18. Conclusions

Appendix: list of symbols
Bibliography
Index

• A clear, non-technical explanation of the issues, emphasising intuitive understanding and interpretation of economic arguments rather than mathematical proofs.
• Provides a sound overview of empirical evidence, without going into intricate detail: a springboard for those wishing to delve deeper into the published literature.
• Early chapters explain the basics of demand and supply, and basic macroeconomics, so those without prior study in economics will find the subject accessible.
• Covers leading edge material including the latest general equilibrium approaches.

• Thoroughly updated to reflect recent events on the world monetary/financial scene to give students a global picture.
• More included on recent empirical results, providing academic rigour.
• New chapter on general equilibrium models to cover the latest thinking on more advanced techniques and give students up to date material.
• Expanded and up-to-date coverage of the Euro provides students with more relevant material.
• Extended coverage of recent innovations on the Law of One Price and Purchasing Power Parity keeps students up to date with current 'hot topics'.
• New section on the relationship between PPP, UIRP and the Fisher equation, helping students to link theories to the real world.