The Role Of The Current Account In Asset Market Models Of Exchange Rate Determination (european University Institute - Series D)

The series Religion and Society (RS) contributes to the exploration of religions as social systems– both in Western and non-Western societies; in particular, it examines religions in their differentiation from, and intersection with, other cultural systems, such as art, economy, law and politics. Due attention is given to paradigmatic case or comparative studies that exhibit a clear theoretical orientation with the empirical and historical data of religion and such aspects of religion as ritual, the religious imagination, constructions of tradition, iconography, or media. In addition, the formation of religious communities, their construction of identity, and their relation to society and the wider public are key issues of this series. Acknowledgements CONTENTS ABBREVIATIONS Outline PART I: THEORETICAL FOUNDATIONS 1. Introduction: Exchange Rate Theories and the Current Account 2. The Monetary Approach 3. Portfolio Balance and Wealth Redistribution Effects of the Current Account 4. Exchange Rate Expectations and the Current Account 5. Diversified Current Account Financing in Portfolio Balance Models APPENDICES PART I I : EMPIRICAL EVIDENCE 6. Introduction and Outline 7. Testing the Basic Model: The Approach of Branson, Halttunen and Hasson 8. Testing a Multi-Country Model: The Approach of Martin and Masson 9. The Standard Portfolio Model: further Empirical Evidence 10. Diversified Current-Account Financing: Some Empirical Signs of Its Significance in the Deutsche Mark/US Dollar Case 11. Negative Net Foreign Asset Positions: Exchange Rate Stability in Portfolio Balance Models Appendices REFERENCES