Exchange Rate Economics
Theories and Evidence

Table of Contents

1. Introduction: Some Basic Concepts and Stylised facts and the Case For (and Against) Floating Exchange Rates  2. Purchasing Power Parity and the PPP Puzzle  3. The Economics of the PPP Puzzle  4. The Flexible Price Monetary Model  5. The Sticky Price Monetary Model  6. Empirical Evidence on the Monetary Exchange Rate Model  7. Currency Substitution and Portfolio Balance Models  8. Real Exchange Rate Determination: Theory and Evidence  9. Equilibrium Exchange Rates: Measurement and Misalignment  10. The New Open Economy Macroeconomics and Exchange Rate Behaviour  11. The New Open Economy Macroeconomics: Pricing to Market and Exchange Rate Volatility Redux  12. The Economics of Fixed Exchange Rates, Part 1: Target Zone Models  13. The Economics of Fixed Exchange Rates, Part 2: Speculative Attack Models and Contagion  14. The Market Microstructure Approach to the Foreign Exchange Market  15. Spot and Forward Exchange Rates and the Forward Premium Puzzle