Foundations of International Macroeconomics (PDF) is an exceptional book that provides a modern, comprehensive treatment of the fundamental issues in open economy macroeconomics and finance. The book is suitable for first-year graduate macroeconomics courses, as well as graduate courses in international macroeconomics and finance.
Each chapter of the book includes various empirical evidence that covers an extensive range of topics. This evidence provides practical value and helps beginners to understand the significance of the economic models developed. Furthermore, the evidence presents key insights and puzzles for advanced researchers of the field.
The book covers several topics, including intertemporal consumption and investment theory, government spending and budget deficits, finance theory and asset pricing, the problems faced in international capital market integration, growth, inflation and seigniorage, policy credibility, real and nominal exchange rate determination, and other issues such as speculative attacks, target exchange rate zones, and parallels between immigration and capital mobility. The majority of the main results of the book are derived for both small country and world economy conditions.
The first seven chapters of the book consist of models of the real economy, while the final three chapters incorporate the monetary side of the economy. The book presents an innovative approach to bridging the gap between real and monetary models.
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