Handbook of International Economics, Volume 2: International Monetary Economics and Finance (Handbooks in Economics)

This Handbook adopts a traditional definition of the subject, and focuses primarily on the explanation of international transactions in goods, services, and assets, and on the main domestic effects of those transactions. The first volume deals with the "real side" of international economics. It is concerned with the explanation of trade and factor flows, with their main effects on goods and factor prices, on the allocation of resources and income distribution and on economic welfare, and also with the effects on national policies designed explicitly to influence trade and factor flows. In other words, it deals chiefly with microeconomic issues and methods. The second volume deals with the "monetary side" of the subject. It is concerned with the balance of payments adjustment process under fixed exchange rates, with exchange rate determination under flexible exchange rates, and with the domestic ramifications of these phenomena. Accordingly, it deals mainly with economic issues, although microeconomic methods are frequently utilized, especially in work on expectations, asset markets, and exchange rate behavior. For more information on the Handbooks in Economics series, please see our home page on http://www.elsevier.nl/locate/hes Content: Introduction to the series Page v Kenneth J. Arrow, Michael D. Intriligator Contents of the handbook Pages vii-x Preface to the handbook Pages xi-xiii Ronald W. Jones, Peter B. Kenen Chapter 13 Macroeconomic theory and policy: How the closed economy was opened Review Article Pages 625-677 Peter B. Kenen Chapter 14 Asset markets, exchange rates and the balance of payments Review Article Pages 679-747 Jacob A. Frenkel, Michael L. Mussa Chapter 15 The specification and influence of asset markets Review Article Pages 749-805 William H. Branson, Dale W. Henderson Chapter 16 The specification and influence of goods and factor markets in open-economy macroeconomic models Review Article Pages 807-857 Neil Bruce, Douglas D. Purvis Chapter 17 Stabilization policies in open economies Review Article Pages 859-916 Richard C. Marston Chapter 18 Exchange-rate dynamics Review Article Pages 917-977 Maurice Obstfeld, Alan C. Stockman Chapter 19 Empirical studies of exchange rates: Price behavior, rate determination and market efficiency Review Article Pages 979-1040 Richard M. Levich Chapter 20 Income and price effects in foreign trade Review Article Pages 1041-1105 Morris Goldstein, Mohsin S. Khan Chapter 21 Empirical studies of macroeconomic interdependence Review Article Pages 1107-1151 John F. Helliwell, Tim Padmore Chapter 22 International money and international monetary arrangements Review Article Pages 1153-1193 Stanley W. Black Chapter 23 Economic interdependence and coordination of economic policies Review Article Pages 1195-1234 Richard N. Cooper Index Pages 1235-1239 "This Handbook adopts a traditional definition of the subject, and focuses primarily on the explanation of international transactions in goods, services, and assets, and on the main domestic effects of those transactions. The first volume deals with the "real side" of international economics. It is concerned with the explanation of trade and factor flows, with their main effects on goods and factor prices, on the allocation of resources and income distribution and on economic welfare, and also with the effects on national policies designed explicitly to influence trade and factor flows. In other words, it deals chiefly with microeconomic issues and methods. The second volume deals with the "monetary side" of the subject. It is concerned with the balance of payments adjustment process under fixed exchange rates, with exchange rate determination under flexible exchange rates, and with the domestic ramifications of these phenomena. Accordingly, it deals mainly with economic issues, although microeconomic methods are frequently utilized, especially in work on expectations, asset markets, and exchange rate behavior." -- Publisher's information. In the period on which this chapter concentrates, two sets of stylized facts had enormous influence on theory and policy.