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TOC
Current
Table of Contents
About the Author
Acknowledgments
Preface
1
Introductory Finance Issues: Current Patterns, Past History, and International Institutions
1.1
The International Economy and International Economics
1.2
GDP, Unemployment, Inflation, and Government Budget Balances
1.3
Exchange Rate Regimes, Trade Balances, and Investment Positions
1.4
Business Cycles: Economic Ups and Downs
1.5
International Macroeconomic Institutions: The IMF and the World Bank
2
National Income and the Balance of Payments Accounts
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2.1
National Income and Product Accounts
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2.2
National Income or Product Identity
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2.3
U.S. National Income Statistics (2013–2014)
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2.4
Balance of Payments Accounts: Definitions
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2.5
Recording Transactions on the Balance of Payments
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2.6
U.S. Balance of Payments Statistics (2014)
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2.7
The Twin-Deficit Identity
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2.8
International Investment Position
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3
The Whole Truth about Trade Imbalances
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3.1
Overview of Trade Imbalances
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3.2
Trade Imbalances and Jobs
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3.3
The National Welfare Effects of Trade Imbalances
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3.4
Some Further Complications
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3.5
How to Evaluate Trade Imbalances
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4
Foreign Exchange Markets and Rates of Return
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4.1
The Forex: Participants and Objectives
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4.2
Exchange Rate: Definitions
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4.3
Calculating Rate of Returns on International Investments
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4.4
Interpretation of the Rate of Return Formula
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4.5
Applying the Rate of Return Formulas
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5
Interest Rate Parity
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5.1
Overview of Interest Rate Parity
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5.2
Comparative Statics in the IRP Theory
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5.3
Forex Equilibrium with the Rate of Return Diagram
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5.4
Exchange Rate Equilibrium Stories with the RoR Diagram
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5.5
Exchange Rate Effects of Changes in U.S. Interest Rates Using the RoR Diagram
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5.6
Exchange Rate Effects of Changes in Foreign Interest Rates Using the RoR Diagram
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5.7
Exchange Rate Effects of Changes in the Expected Exchange Rate Using the RoR Diagram
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6
Purchasing Power Parity
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6.1
Overview of Purchasing Power Parity (PPP)
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6.2
The Consumer Price Index (CPI) and PPP
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6.3
PPP as a Theory of Exchange Rate Determination
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6.4
Problems and Extensions of PPP
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6.5
PPP in the Long Run
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6.6
Overvaluation and Undervaluation
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6.7
PPP and Cross-Country Comparisons
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7
Interest Rate Determination
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7.1
Overview of Interest Rate Determination
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7.2
Some Preliminaries
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7.3
What Is Money?
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7.4
Money Supply Measures
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7.5
Controlling the Money Supply
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7.6
Money Demand
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7.7
Money Functions and Equilibrium
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7.8
Money Market Equilibrium Stories
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7.9
Effects of a Money Supply Increase
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7.10
Effect of a Price Level Increase (Inflation) on Interest Rates
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7.11
Effect of a Real GDP Increase (Economic Growth) on Interest Rates
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7.12
Integrating the Money Market and the Foreign Exchange Markets
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7.13
Comparative Statics in the Combined Money-Forex Model
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7.14
Money Supply and Long-Run Prices
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8
National Output Determination
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8.1
Overview of National Output Determination
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8.2
Aggregate Demand for Goods and Services
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8.3
Consumption Demand
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8.4
Investment Demand
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8.5
Government Demand
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8.6
Export and Import Demand
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8.7
The Aggregate Demand Function
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8.8
The Keynesian Cross Diagram
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8.9
Goods and Services Market Equilibrium Stories
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8.10
Effect of an Increase in Government Demand on Real GNP
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8.11
Effect of an Increase in the U.S. Dollar Value on Real GNP
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8.12
The J-Curve Effect
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9
The AA-DD Model
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9.1
Overview of the AA-DD Model
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9.2
Derivation of the DD Curve
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9.3
Shifting the DD Curve
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9.4
Derivation of the AA Curve
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9.5
Shifting the AA Curve
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9.6
Superequilibrium: Combining DD and AA
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9.7
Adjustment to the Superequilibrium
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9.8
AA-DD and the Current Account Balance
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10
Policy Effects with Floating Exchange Rates
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10.1
Overview of Policy with Floating Exchange Rates
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10.2
Monetary Policy with Floating Exchange Rates
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10.3
Fiscal Policy with Floating Exchange Rates
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10.4
Expansionary Monetary Policy with Floating Exchange Rates in the Long Run
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10.5
Foreign Exchange Interventions with Floating Exchange Rates
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11
Fixed Exchange Rates
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11.1
Overview of Fixed Exchange Rates
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11.2
Fixed Exchange Rate Systems
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11.3
Interest Rate Parity with Fixed Exchange Rates
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11.4
Central Bank Intervention with Fixed Exchange Rates
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11.5
Balance of Payments Deficits and Surpluses
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11.6
Black Markets
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12
Policy Effects with Fixed Exchange Rates
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12.1
Overview of Policy with Fixed Exchange Rates
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12.2
Monetary Policy with Fixed Exchange Rates
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12.3
Fiscal Policy with Fixed Exchange Rates
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12.4
Exchange Rate Policy with Fixed Exchange Rates
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12.5
Reserve Country Monetary Policy under Fixed Exchange Rates
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12.6
Currency Crises and Capital Flight
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12.7
Case Study: The Breakup of the Bretton Woods System, 1973
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13
Fixed versus Floating Exchange Rates
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13.1
Overview of Fixed versus Floating Exchange Rates
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13.2
Exchange Rate Volatility and Risk
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13.3
Inflationary Consequences of Exchange Rate Systems
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13.4
Monetary Autonomy and Exchange Rate Systems
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13.5
Which Is Better: Fixed or Floating Exchange Rates?
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