International Finance and Open-Economy Macroeconomics

1. Front Matter

   Pages i-xxi

   PDF

2. Introduction

   1. Front Matter

      Pages 1-1

      PDF

   2. International Finance and International Macroeconomics: An Overview

      • Giancarlo Gandolfo

      Pages 3-9

3. The Basics

   1. Front Matter

      Pages 11-11

      PDF

   2. The Foreign Exchange Market

      • Giancarlo Gandolfo

      Pages 13-37

   3. Exchange-Rate Regimes

      • Giancarlo Gandolfo

      Pages 39-51

   4. International Interest-Rate Parity Conditions

      • Giancarlo Gandolfo

      Pages 53-66

   5. The Balance of Payments

      • Giancarlo Gandolfo

      Pages 67-83

   6. Real and Financial Flows in an Open Economy

      • Giancarlo Gandolfo

      Pages 85-94

4. Flow Approaches

   1. Front Matter

      Pages 95-95

      PDF

   2. The Elasticity Approach

      • Giancarlo Gandolfo

      Pages 97-126

   3. The Multiplier Approach

      • Giancarlo Gandolfo

      Pages 127-159

   4. An Integrated Approach

      • Giancarlo Gandolfo

      Pages 161-190

   5. The Mundell-Fleming Model

      • Giancarlo Gandolfo

      Pages 191-220

   6. Policy Implications of the Mundell-Fleming Model, and the Assignment Problem

      • Giancarlo Gandolfo

      Pages 221-242

5. Stock and Stock-Flow Approaches

   1. Front Matter

      Pages 243-243

      PDF

   2. The Monetary Approach to the Balance of Payments and Related Approaches

      • Giancarlo Gandolfo

      Pages 245-264

   3. Portfolio and Macroeconomic Equilibrium in an Open Economy

      • Giancarlo Gandolfo

      Pages 265-310

   4. Growth in an Open Economy

      • Giancarlo Gandolfo

      Pages 311-329

6. The Exchange Rate

   1. Front Matter

      Pages 331-331

      PDF

This rigorous textbook tames technicalities and makes even the most complex models accessible to students. Its unique two-tier structure makes the book attractive for undergraduates, graduates and researchers alike. In fact, the coverage is primarily directed to undergraduate students and is mainly confined to graphic analysis and to some elementary algebra. Further, each chapter has its own mathematical appendix, in which (i) the topics treated in the text are examined at a level suitable for advanced undergraduates, graduates and researchers, and (ii) generalizations and/or topics not treated in the text (including some at the cutting edge of research) are formally examined. The new edition has been thoroughly revised and updated to reflect the latest research on international finance.

This book deals with the financial side of international economics and covers all aspects of international finance. There are many books and articles by exponents of alternative points of view. I know of no other book that provides the scope, balance, objectivity and rigor of this book.

the late Professor Jerome L. Stein, Brown University

This book is a second edition of a volume on international finance first published in 2001. Like Giancarlo’s other books in International Economics, this book is organised as a two-books-in-one by distributing the material between text and appendices. The text provides coverage suitable for an undergraduate course while the mathematical appendices provide coverage of the topics at the frontier of the discipline and suitable for advanced undergraduate or graduate students in an international finance and international macroeconomics course.

This edition updates the earlier volume and covers all the classic topics as well as the more recent advances in the theory and  modelling of international finance. It includes some discussion of the empirical testing of these theories and where appropriate reference to the extensive empirical literature is also provided.

This book is a valuable addition to the bookshelf of any serious International Finance Scholar and provides a treasure chest of material for any quality international finance course.

Professor Pasquale M Sgro, Deakin University

Giancarlo Gandolfo is one of the profession's most gifted textbook authors on mathematical modeling and international economics. His revised International Finance and Open-Economy Macroeconomics is remarkable for its scope and clarity. The book covers the older and intertemporal approaches, and topics that are usually left out of graduate treatments (the chapter on balance-of-payments accounting is a gem). Gandolfo's two-tier approach of first developing topics with graphs and basic algebra and then providing rigorous mathematics for each topic makes the book ideal for advanced undergraduate and graduate classes.

Professor Michael D. Goldberg, University of New Hampshire

• International economics
• International finance
• International macroeconomics
• Mathematical modeling
• Monetary economics
• quantitative finance

• Classe di Scienze Morali, Accademia Nazionale dei Lincei, Rome, Italy

  Giancarlo Gandolfo

Giancarlo Gandolfo has been Professor of International Economics at the University of Rome la Sapienza from 1974 to 2010, when he retired. Previously he taught Economics and Mathematical Economics at the Universities of Rome (1965-70) and Siena (1968-74). He has been visiting professor in various foreign universities. He is a member of the Accademia Nazionale dei Lincei, Rome, a research Fellow of CESifo, Munich, and holds a doctorate honoris causa from the University of Frankfurt. He is the author of over 190 publications and sits on the editorial board of several international journals.

Daniela Federici is Professor of International Economics at University of Cassino and Southern Lazio. She earned her Laurea in Economics at the University of Rome La Sapienza and her Ph.D. in International Economics at Graduate Institute of International Studies, Geneva. Federici has published papers in leading international journals on topics such as exchange rate dynamics, international trade, and productivity growth. She has been research visiting at Columbia University, Stanford University, University of Illinois at Urbana-Champaign, and Pace University.

Policies and ethics