Interest Rates, Exchange Rates and World Monetary Policy

This book conducts a careful basic theoretical and econometric analysis of the factors determining the real exchange rates of Canada, the U.K., Japan, France and Germany with respect to the United States.

Real exchange rate determination and the workings of monetary policy of individual countries in a world economy Includes supplementary material: sn.pub/extras

Inhalt
A Theoretical Framework.- Specifications and Assumptions.- Underlying Equilibrium Growth Paths.- Variations in Employment.- Some Important Implications.- Exchange Rate Overshooting.- Exchange Rate Determination.- Issues Regarding Exchange Rate Determination.- Time Series Properties of Observed Exchange Rate Movements.- Efficient Markets and Exchange Rate Forecasts.- The Role of Real Shocks in Determining Real Exchange Rates: The Evidence.- The Role of Money Supply Shocks in Determining Real Exchange Rates: The Evidence.- Further Evidence from a Blanchard-Quah VAR Analysis.- Implications for Monetary Policy.- The Model.- Monetary Policy and Exchange Rates.- Corroborating and Other Evidence.- Conclusions and Suggestions for Future Work.