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List of Figures | |
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List of Tables | |
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Preface to the Third Edition | |
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Introduction | |
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Some Basic Concepts in International Finance | |
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The exchange rate | |
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The balance of payments accounts | |
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Purchasing power parity | |
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Floating exchange rates: prospect and retrospect | |
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Exchange rate volatility | |
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Spot and Forward Exchange Rates: Some More Basic Ideas | |
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The elasticities view of the exchange rate | |
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The forward exchange rate, arbitrage and pure speculation | |
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Covered interest parity - empirical evidence | |
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Uncovered interest parity - empirical evidence | |
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Real interest rate parity - empirical evidence | |
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Income and the Balance of Payments | |
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The foreign trade multiplier | |
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The equilibrium real exchange rate | |
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An early view of economic management | |
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The assignment problem | |
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The absorption approach | |
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Intertemporal utility maximization and the current account | |
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Twin deficits | |
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Foreign repercussions with no capital mobility | |
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Macroeconomics in an Open Economy: The Mundell-Fleming Model and Some Extensions | |
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The "base-line" Mundell-Fleming model | |
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The large country case | |
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Insulation and the MF model | |
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Imperfect capital mobility and the MF model | |
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Regressive expectations and monetary-fiscal policy | |
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The J curve and regressive expectations | |
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Wealth effects | |
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Aggregate supply, the real balance effect and the exchange rate in the MF model | |
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Summary and conclusions | |
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International Policy Coordination | |
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The two-country Mundell-Fleming model and macroeconomic interdependence | |
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The potential gains from policy coordination | |
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Dynamic games and the sustainability and reputation credibility of international cooperation | |
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Some evidence on the potential benefits of coordination | |
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Potential impediments to policy coordination and the appropriate form of such coordination | |
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Purchasing Power Parity: Theory and Evidence | |
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The absolute and relative purchasing power parity concepts | |
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The efficient markets view of purchasing power parity | |
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Further interpretation of purchasing power parity | |
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Some further criticisms of purchasing power parity | |
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The empirical validity of purchasing power parity | |
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Concluding comments | |
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The Monetary Approach to the Balance of Payments | |
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What is so different about the monetary approach? | |
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The global monetarist model | |
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Sterilization and the reserve offset coefficient | |
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The international transmission of inflation: some evidence | |
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The Monetary View of Exchange Rate Determination | |
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The asset approach to the exchange rate | |
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The flex-price monetary approach to the exchange rate | |
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Introducing expectations | |
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Rational speculative bubbles | |
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The sticky-price monetary approach | |
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Currency substitution | |
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Empirical evidence on the monetary model | |
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More empirical evidence | |
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Empirical tests for the existence of speculative bubbles | |
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Concluding comments | |
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The Monetary Model: Further Applications - Real Shocks and Exchange Regime Volatility | |
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Introduction | |
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The general equilibrium monetary model | |
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The monetary model and exchange regime volatility | |
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Empirical evidence on the general equilibrium approach | |
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Concluding comments | |
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The Portfolio Balance Approach to the Determination of the Exchange Rate | |
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The portfolio balance model | |
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Open market purchase of bonds: monetary policy | |
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An increase in the supply of domestic bonds: fiscal policy | |
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Asset preference shift | |
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Econometric evidence on the portfolio balance approach | |
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Summary and concluding comments | |
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Spot and Forward Exchange Rates and the Efficient Markets Hypothesis | |
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Spot and forward exchange rates | |
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The efficient markets hypothesis and the forward market for foreign exchange | |
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Econometric estimation of the efficient markets hypothesis | |
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A risk premium story to explain why a may not be unity | |
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Empirically implementing equa | |