Exchange Rates and International FinanceLaurence S CopelandExchange rates and exchange rate fluctuations play an increasingly important role in all of our lives. Exchange Rates and International Finance provides a clear and concise guide to the causes and consequences of exchange rate fluctuations and will enable readers to grasp the essentials of exchange rate theory and its relevance to major events in currency markets. The orientation of the book is towards exchange rate determination with particular emphasis given to the contributions of modern finance theory. Both fixed and floating exchange rate models and empirical results are explored and discussed.Written in a clear and concise style and thoroughly updated in its third edition, this successful text continues to make exchange rate theories, models, causes and consequences accessible to a broad readership. The new edition incorporates internet- age features such as appropriate Web links to related sites and to the book's own Web page.KEY FEATURES A clear non-technical explanation of the issues, emphasising intuitive explanations. Demonstrates the links between macroeconomics and exchange rate determination. Explains the poten ÍNDICE 1. Introduction Part I. The International Setting.2. Prices in the open economy: purchasing power parity.3. The financial markets in the open economy.4. Open economy macroeconomics. Part II.Exchange rates determination.5. Flexible prices: the monetary model.6. Fixed prices: the Mundell-Fleming model.7. Sticky prices: the Dornbush model.8. Portfolio balance and the current account.9. Currency substitution.10. Optimum currency areas and monetary union. Part III. A world of uncertainty.11. Market efficiency and rational expectations.12. The "news" model and exchange rate volatility.13. The risk premium.14. A certain uncertainty: non-linearity, cycles and chaos.15. Target zones.16. Crises and credibility. Part IV. Conclusions.17. Conclusions.Appendix.Index.