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ISBN: 031212659XИздательство: St. Martin's Press
This new text provides a systematic and comprehensive international treatment of the asset approach to the exchange rate and the current account of the balance of payments. It includes an analysis of macroeconomic adjustments under fixed, floating and managed exchange rates and it compares the stabilisation properties of each exchange rate regime in the case where economies are subjected to random shocks and price adjustments and are characterized by inertia. It highlights the issues that arise frominternational coordination of policies and provides a comprehensive survey of the empirical evidence on exchange rate economics.