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The Macroeconomic Theory of Exchange Rate Crises

The Macroeconomic Theory of Exchange Rate Crises

Author: Giovanni Piersanti
Publisher: Oxford University Press
ISBN: 9780199653126
Published In: April 2012
Format: Hardback , 416 pages
Jurisdiction: International ? Disclaimer:
Countri(es) stated herein are used as reference only

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Description
Contents
Author

Details
- Wide range of specialized topics
- Deals with genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems
- Sound mathematical treatment- models are derived from microeconomic principles of individual optimization.
- Considers the dynamics of speculative attacks in international capital markets and shows how models with an intrinsic dynamic structure can be built and used to analyze currency and financial collapses
This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs. It aims to provide a survey of both the theoretical literature on international financial crises and a systematic treatment of the analytical models. It analyzes a series of macroeconomic models and demonstrates their properties and conclusions, including comparative statics and dynamic behaviour. The models cover the range of phenomena exhibited in modern crises experienced in countries with fixed or managed exchange rate systems. Among the topics covered, beyond currency sustainability, are bank runs, the interaction between bank solvency and currency stability, capital flows and borrowing constraints, uncertainty about government policies, asymmetric information and herding behaviour, contagion across markets and countries, financial markets and asset price bubbles, strategic interaction among agents and equilibrium selection, the dynamics of speculative attacks and of financial crashes in international capital markets. The book is intended for econometricians, academics, policymakers and specialists in the field, and postgraduate students in economics.

Readership: Academics and postgraduate students in economics, econometricians, policymakers, government and central bank research departments, and specialists in the field.
Preface
Introduction
Part I: The Monetary Model under Flexible Exchange Rates
1: The Basic Monetary Model of the Exchange Rate
Part II: Fixed Exchange-Rate Regimes and Currency Crises
2: Crises and Policy Imbalances
3: Crises and Self-Fulfilling Expectations
4: Dynamics of Crises
5: Epilogue
Mathematical Appendix
Introduction
A.1: Basic Properties of Ordinary Differential Equations
A.2: Basic Properties of Ordinary Difference Equations
A.3: Nonlinear Dynamics, Bifurcation and Chaos
A.4: Dynamic Optimization
A.5: Stochastic Equations
Giovanni Piersanti, Professor of Economics, University of Teramo and University of Rome 'Tor Vergata'

Prior to joining the University of Teramo Giovanni Piersanti was Associate Professor of Economics at the University of Chieti. His research interests include economic theory and stabilization policy; monetary economics; growth theory; macroeconomic models of intertemporal optimization; macroeconometric models with rational expectations; and currency and financial crises.