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.
Readership: Graduate students and researchers in the fields of international economics and international finance.
Table of Contents
PART I: EXCHANGE RATE ECONOMICS
Chapter 1. Chaos in the Dornbusch Model of the Exchange Rate
Chapter 2. Heterogeneity of Agents, Transactions Costs and the Exchange Rate
Chapter 3. Exchange Rate Puzzles: A Tale of Switching Attractors
Chapter 4. Exchange Rates in Search of Fundamentals: The Case of the Euro–Dollar Rate
Chapter 5. Exchange Rates and Fundamentals: A Non-Linear Relationship?
Chapter 6. The Impact of FX Central Bank Intervention in a Noise Trading Framework
PART II: MONETARY INTEGRATION
Chapter 7. Conditions for Monetary Integration: A Geometric Interpretation
Chapter 8. Is Europe an Optimum Currency Area? Evidence from Regional Data
Chapter 9. Setting Conversion Rates for the Third Stage of EMU
Chapter 10. The Euro and Financial Crises
Chapter 11. What Have We Learnt about Monetary Integration since the Maastricht Treaty?
Chapter 12. The Governance of a Fragile Eurozone
Chapter 13. Do Asymmetries Matter for European Monetary Policy?
PART III: MACROECONOMICS AND MONETARY POLICY
Chapter 14. Is Inflation always and Everywhere a Monetary Phenomenon?
Chapter 15. Monetary Policy and the Real Economy
Chapter 16. Lessons from the Banking Crisis: A Return to Narrow Banking
Chapter 17. The Scientific Foundation of Dynamic Stochastic General Equilibrium (DSGE) Models
Chapter 18. Animal Spirits and Monetary Policy
Chapter 19. Booms and Busts in Economic Activity: A Behavioral Explanation