An theory, policy and applications Bird, Graham R. creator text Basingstoke Palgrave Macmillan 2007 3rd ed. monographic xii, 227 p. : ill. ; 24 cm. Part I Theory 5 -- 2 An Open-economy Macroeconomic Model 7 -- From Simple Closed- to Simple Open-economy Models 7 -- IS-LM and the Open Economy 12 -- The Foreign Trade or Open-economy Multiplier 13 -- The Transmission of Changes in Economic Activity between Economies 15 -- Some Reservations about the Simple Open-economy Model 17 -- Prices in the Open-economy Model 18 -- 3 Trade Functions and Capital Movements 35 -- The Import Function 35 -- The Export Function 38 -- The Capital Account: Flow or Stock Theory? 39 -- Disaggregating Capital Flows 45 -- 4 Balance of Payments Theory 46 -- A Basic Model of the Balance of Payments 46 -- Shifts in IS: The Absorption Approach 48 -- Shifts in LM: The Monetary Approach 51 -- Shifts in BP: The Structural Approach 55 -- Synthesising the Approaches: Towards a General Theory 56 -- 5 Theories of Exchange-rate Determination 60 -- Structural and Absorption Factors: Shifts in BP and IS 63 -- The Monetary Approach: Shifts in LM 64 -- Purchasing Power Parity (PPP) 65 -- The Asset Market Approach 67 -- Expectations and Exchange Rates 68 -- Overshooting 68 -- Forward Markets 71 -- Synthesising the Approaches: Some Tentative Conclusions 72 -- 6 Theories of Currency Crisis 75 -- Currency Crisis Models 75 -- Can Crises be Anticipated? 82 -- Crises and Contagion 84 -- Policies During a Crisis and the Aftermath of Crises 86 - - Part II Policy 91 -- 7 Balance of Payments Policy 93 -- To Adjust or to Finance? 93 -- What Does Adjustment Involve? 95 -- Commercial Policy and the Balance of Payments 97 -- Structural Adjustment and the Supply Side 98 -- Choosing a Balance of Payments Policy: The Political Economy Dimension 99 -- Policy at National and Global Levels 100 -- 8 Stabilisation Policy in an Open Economy 102 -- Targets 102 -- Instruments 103 -- Matching Targets and Instruments 105 -- A Model of the Assignment Problem 105 -- Criticisms of the Model 107 -- Policy Analysis Within the IS-LM-BP Model: With Fixed Exchange Rates 108 -- Policy Analysis Within the IS-LM-BP Model: With Flexible Exchange Rates 113 -- Fiscal Policy 113 -- Monetary Policy 117 -- Macroeconomic Interdependence: The Transmission of Policy Changes 120 -- 9 Exchange Rate Management and Policy 125 -- Devaluation, Foreign Trade Elasticities and the Current Account 125 -- Elasticity Pessimism 128 -- Income Elasticities 130 -- Devaluation, Absorption and the Monetary Sector 130 -- The Size, Method and Pace of Exchange Rate Depreciation 132 -- Currency Depreciation and the Capital Account 134 -- The Political Economy of Currency Depreciation 135 -- The Choice of Exchange Rate Regime 137 -- Monetary Integration 141 -- Optimum Currency Areas 141 -- Single Currencies and Dollarisation 143 -- Regime Change 145 -- 10 Dealing with International Capital Volatility 151 -- Revisiting Theory 151 -- Capital Mobility: Good or Bad? 153 -- The Macroeconomic Effects of Capital Flows 154 -- Policy Options 156 -- 11 The International Co-ordination of Macroeconomic Policy 158 -- Forms of Policy Co-ordination 159 -- Arguments For Policy Co-ordination 161 -- Arguments Against Policy Co-ordination 163 -- Issues for Further Consideration 164 -- Institutional Arrangements 165 -- Part III Applications 167 -- 12 The Oil Crisis of the 1970s and the Debt Crisis of the 1980s 169 -- The Oil Crisis of the 1970s 169 -- The Developing Country Debt Crisis of the 1980s 172 -- 13 Monetary Integration in Europe: The UK and the Euro 175 -- Britain's Entry into the ERM 175 -- Britain's Exit from the ERM 176 -- Monetary Integration in Europe After the Crisis 181 -- The Euro Arrives: To Join or Not to Join? 182 -- The Downs and Ups of the Euro 183 -- 14 Currency and Economic Crises in Emerging Economies 185 -- The Mexican Peso Crisis of 1994 185 -- The East Asian Crisis, 1997 -- 8 188 -- Argentina, 2002 192 -- 15 The US Current Account Deficit and Global Economic Imbalances 197 -- Explaining the US Current Account Deficit 197 -- The Current Account Deficit and Sustainability 201 -- Policy Options in the USA 202 -- Global Economic Imbalances and Policy Co-ordination 203 - - 16 Macroeconomic Policy and the International Monetary Fund 205 -- The Classic Current Account Case and Conventional IMF Policy Wisdom 205 -- Low-income Countries and Structural Adjustment 207 -- Capital Account Crises and Discontentment with IMF Policy 210. Graham Bird. Formerly CIP. Previous ed.: Basingstoke: Macmillan, 1998. Rev. ed. of: International macroeconomics. New York : Macmillan, 1987. Includes bibliographical references (p. 212-219) and index. Macroeconomics 339 Bird, Graham R. 1403940045 (pbk.) : 9781403940049 (pbk.) : 2006051354