Exchange-Rate Dynamics (Princeton Series in International Economics) (eBook PDF) – Digital Ebook – Instant Delivery Download
Product details:
- ISBN-10 : 0691150893
- ISBN-13 : 978-0691150895
- Author: Martin D. D. Evans
Variations in the foreign exchange market influence all aspects of the world economy, and understanding these dynamics is one of the great challenges of international economics. This book provides a new, comprehensive, and in-depth examination of the standard theories and latest research in exchange-rate economics. Covering a vast swath of theoretical and empirical work, the book explores established theories of exchange-rate determination using macroeconomic fundamentals, and presents unique microbased approaches that combine the insights of microstructure models with the macroeconomic forces driving currency trading.
Macroeconomic models have long assumed that agents―households, firms, financial institutions, and central banks―all have the same information about the structure of the economy and therefore hold the same expectations and uncertainties regarding foreign currency returns. Microbased models, however, look at how heterogeneous information influences the trading decisions of agents and becomes embedded in exchange rates. Replicating key features of actual currency markets, these microbased models generate a rich array of empirical predictions concerning trading patterns and exchange-rate dynamics that are strongly supported by data. The models also show how changing macroeconomic conditions exert an influence on short-term exchange-rate dynamics via their impact on currency trading.
Table contents:
Pt. I. Macro models.
1. Macro models without frictions
2. Macro models with frictions
3. Empirical macro models
Pt. II. Microstructure models.
4. Rational expectations models
5. Sequential trade models
6. Currency-trading models
7. Currency-trading models : empirical evidence
8. Identifying order flow
Pt. III. Micro-based models.
9. Order flows and the macroeconomy
10. Exchange rates, order flows, and macro data releases
11. Exchange-rate risk.
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