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Principles of International Finance and Open Economy Macroeconomics: Theories, Applications, and Policies presents a macroeconomic framework for understanding and analyzing the global economy from the perspectives of emerging economies and developing countries.
Unlike most macroeconomic textbooks, which typically emphasize issues about developed countries while downplaying issues related to developing countries, this book emphasizes problems in emerging economies, including those in Latin American countries.
It also explains recent developments in international finance that are essential to a thorough understanding of the effects and implications of the recent financial crisis.
List of contents
1 Introduction: Overview of the Book ContentPART I: Definitions2 How to Measure International Transactions3 Foreign Exchange Market
PART II: Current Account and Real Exchange Rate4 What is the Optimal Level of the Current Account?5 Equilibrium Real Exchange Rate
PART III: Determination of the Nominal Exchange Rate6 Money and Exchange Rate in the Long Run7 Macroeconomic Policies and Exchange Rates in the Short Run8 Portfolio Diversification and Capital Flows
PART IV: Crises and Exchange Rate Policy9 Currency Crises10 Exchange Rate Regimes11 Political Economy of Exchange Rate Policy
About the author
Cristina Terra is professor of economics at ESSEC Business School. PhD in economics from Princeton University, she has taught in France, Brazil, and the United States. She has been Director of École Doctorale Économie Management et Mathématiques de Cergy at Université de Cergy-Pontoise, and Director of Graduate Studies at Fundação Getulio Vargas, Brazil. Her mains research interests are International Economics and Development Economics, with several articles published in international economic journals, such as Journal of International Economics, Journal of Development Economics, The Quarterly Journal of Economics, among others. She is member of the editorial board of Journal of Applied Economics and an associate researcher at THEMA and CEPII.
Report
"Cristina Terra's superb intermediate international macroeconomics textbook fills an important void by providing analysis that is more mathematically rigorous than standard mass market texts, yet remains quite accessible to both advanced undergraduates and first year graduate students. The book is also different in its focus on emerging market policy issues, though the financial crisis has shown that advanced economy practitioners would do well to learn these lessons also. Another very appealing aspect of the book is that a great deal of the material is encompassed within a unified analytical framework, helping students to see links between issues. A very useful addition to the market, especially for juniors and seniors that are really too advanced for standard intermediate international macro books." --Kenneth Rogoff, Harvard University
"The world of international finance has been since 2007 one of the most interesting and complex ever known. Developing countries are emerging, developed economies are facing serious fiscal and demographic challenges, the international monetary system is chaotic, balance of payments imbalances abound, exchange rates fluctuate, and challenges only increase. Cristina Terra's book comes at a good time, putting these issues in order clearly and didactically. Covering basic concepts and relevant models in a clear and in a well-illustrated way, this book will serve as an essential reference for academics and practitioners." --Arminio Fraga Neto, Gávea Investimentos, Brazil
"An inspiring textbook on international macroeconomics, developed with lucid economic intuition and illustrated with up-to-date issues in global economy." --Ou Hu, Youngstown State University
