The Macroeconomic Theory of Exchange Rate Crises - Hardcover

Piersanti, Giovanni

9780199653126: The Macroeconomic Theory of Exchange Rate Crises

Hardcover

ISBN 10: 0199653127 ISBN 13: 9780199653126

Publisher: OUP Oxford, 2012

This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs. It aims to provide a survey of both the theoretical literature on international financial crises and a systematic treatment of the analytical models. It analyzes a series of macroeconomic models and demonstrates their properties and conclusions, including comparative statics and dynamic behaviour. The models cover the range of phenomena exhibited in modern crises experienced in countries with fixed or managed exchange rate systems. Among the topics covered, beyond currency sustainability, are bank runs, the interaction between bank solvency and currency stability, capital flows and borrowing constraints, uncertainty about government policies, asymmetric information and herding behaviour, contagion across markets and countries, financial markets and asset price bubbles, strategic interaction among agents and equilibrium selection, the dynamics of speculative attacks and of financial crashes in international capital markets. The book is intended for econometricians, academics, policymakers and specialists in the field, and postgraduate students in economics.

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Review:

This book is notable and useful ... While the key arguments of those competing paradigms are carefully outlined, the respective chapters also present a rich sample of variations on themain theme. (Philipp Harms, Journal of Economy)

About the Author:

Prior to joining the University of Teramo Giovanni Piersanti was Associate Professor of Economics at the University of Chieti. His research interests include economic theory and stabilization policy; monetary economics; growth theory; macroeconomic models of intertemporal optimization; macroeconometric models with rational expectations; and currency and financial crises.

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