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Modern economies become more and more open and the external sector of an economy becomes more and more important. This textbook aims at clarify ing how an open economy functions, in particular at explaining the determi nants of international fiows of commodities and financial assets. It also aims at examining the effects of these fiows on the domestic and international econ omy and the possible policy acti.ons at the national and international level. Particular attention will be paid to the problems of international economic at both the commercial and monetary level. integration Students will be able to read and interpret the balance of payments of a country, evaluating the various types of balance, to explain the behaviour of commercial fiows in the light of the theories studied, to analyze fiows of financial assets according to interest-rate differentials and other elements, to study the forces that determine exchange rates and cause currency crises, to understand the reasons behind international economic integration such as the European Union, to evaluate the effects of national and international policies.
List of contents
1 Introduction.- I The Basics.- 2 The Foreign Exchange Market.- 3 Exchange-Rate Regimes and the International Monetary System.- 4 International Interest-Rate Parity Conditions.- 5 The Balance of Payments.- II International Finance and Open-Economy Macroeconomics.- 6 The Basic Models: Elasticities, Multiplier, Mundell-Fleming.- 7 The Monetary and Portfolio Approaches.- 8 Capital Movements, Speculation, and Currency Crises.- 9 Exchange-Rate Determination.- 10 The Intertemporal Approach to the Balance of Payments.- 11 International Monetary Integration and European Monetary Union.- 12 Problems of the International Monetary System.- III International Trade Theory and Policy.- 13 The Orthodox Theory: Comparative Cost, Factor Endowments, Demand.- 14 Tariffs, and Non-Tariff Barriers.- 15 Free Trade vs Protection, and Preferential Trade Cooperation.- 16 The new Protectionism.- 17 The new Theories of International Trade.- 18 Growth, Trade, Globalization.- List of Figures.- List of Tables.- List of Boxes.
About the author
Since 1974 professor Giancarlo Gandolfo is full professor of International Economics, Faculty of Economics, Sapienza University of Rome. Since 2005 he is member of the scientific committee of University of Rome La Sapienza Press. His main areas of research are International monetary economics, continuous time econometrics, mathematical methods and models of economic dynamics. He is recipient of several research grants by national and international institutions.
Summary
Modern economies become more and more open and the external sector of an economy becomes more and more important. This textbook aims at clarify ing how an open economy functions, in particular at explaining the determi nants of international fiows of commodities and financial assets. It also aims at examining the effects of these fiows on the domestic and international econ omy and the possible policy acti.ons at the national and international level. Particular attention will be paid to the problems of international economic at both the commercial and monetary level. integration Students will be able to read and interpret the balance of payments of a country, evaluating the various types of balance, to explain the behaviour of commercial fiows in the light of the theories studied, to analyze fiows of financial assets according to interest-rate differentials and other elements, to study the forces that determine exchange rates and cause currency crises, to understand the reasons behind international economic integration such as the European Union, to evaluate the effects of national and international policies.
Additional text
From the reviews:
"This book details how an open economy functions. … Particular attention is paid to the problems of international economic integration at both the commercial and monetary level. This highly accessible textbook introduces students to the subject as well as equips them for further study. Advanced undergraduates and graduates will learn to read and interpret the balance of payments of a country … ." (RKW-Bücherdienst Ratinalisierungskuratorium und Innovationszentrum der Deutschen Wirtschaft, 2004)
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From the reviews:
"This book details how an open economy functions. ... Particular attention is paid to the problems of international economic integration at both the commercial and monetary level. This highly accessible textbook introduces students to the subject as well as equips them for further study. Advanced undergraduates and graduates will learn to read and interpret the balance of payments of a country ... ." (RKW-Bücherdienst Ratinalisierungskuratorium und Innovationszentrum der Deutschen Wirtschaft, 2004)
