The book presents and further develops basic principles and concepts in international finance and open economy macroeconomics to make them more relevant for emerging and developing economies (EDEs). The volume emphasises the necessity of greater knowledge of context as populous Asian economies integrate with world markets, as well as the rapidly changing nature of the area due to rethinking after the global financial crisis. It addresses a host of themes, including key issues such as exchange rate economics, macroeconomic policy in an open economy, analytical frameworks for and experience of EDEs after liberalisation, the international financial system, currency and financial crises, continuing risks and regulatory response.
This book will be useful to scholars and researchers of economics, especially in macroeconomics, business and finance and development studies.
‘This [book] is an advanced text on open economy macroeconomics in the context of emerging developing economies by a leading macroeconomist of the country. It provides a valuable New Keynesian perspective, combining forward-looking behaviour and price rigidities with dualism in labour markets.’
V. S. Chitre, Professor and Director, Indian School of Political Economy, Pune, India
‘With emerging markets over half of world GDP it is important to incorporate the unique institutional features of these markets into the workhorse analytical frameworks of international macroeconomics, to better understand the past, current and future evolution of the world economy. Ashima Goyal is an expert on these issues and her book is a timely and valuable contribution to the field of international macroeconomics. All students, researchers and practitioners interested in the progress of the world economy will greatly benefit from studying it.’
Gita Gopinath, John Zwaanstra Professor of International Studies and of Economics, Harvard University, USA
'…this comprehensive, balanced and readable book is a valuable addition to the economics literature particularly in a time when the world economy is undergoing significant changes and transformations.'
Gourishankar S. Hiremath, Indian Institute of Technology Kharagpur, Journal of Quantitative Economics
1. Analytical frameworks and their evolution 2. Basic accounting: the balance of payments 3. The asset approach to the exchange rate 4. Market microstructure of foreign exchange markets 5. Purchasing power parity and the exchange rate 6. The monetary approach to the exchange rate 7. The real exchange rate: beyond monetary theories 8. Short-run adjustment: monetary and fiscal policy 9. Exchange rate policy 10. New open economy macroeconomics 11. New directions for monetary and fiscal policy 12. Structure, stabilisation and structural adjustment 13. Currency crises 14. The global financial crisis and the international financial system