Publisher Description

In an outstanding account of exchange rates inthe international monetary system, W. Max Corden considers the essential issues in international macroeconomics. The author takes as his model the macroeconomic situation of a country with an open economy, and explains the effects of domestic fiscal and monetary macroeconomic policy on exchange rates. He clearly analyses the choices faced by governments attempting to manage both the domesticinflation rate and the external exchange rate and current account balance. Professor Corden then discusses the European Exchange Rate mechanism, and provides a sceptical analysis of the possibilities formonetary union in Europe, and for international policy coordination in general. He gives equal weight to discussion of the present US-centred international monetary system outside the ERM, and combines theoretical models with an account of the actual determination of floating exchange rates. Although the book itself is orientated towards monetary rather than trade issues, the author discusses two topical issues: the role of protectionist policies, and the idea of competitiveness. Finally, helooks at the future of the international monetary system and the series of current reform proposals. Students will find this book useful because the author covers essentialissues lucidly and authoritatively. The exposition is entirely non-mathematical. Postgraduate students and academics will be interested since Corden is a distinguished writer on international trade and policy, and his arguments are powerfully presented. New to this edition: This is a revised and expanded edition of a previous book by Corden, Inflation, Exchange Rates and the World Economy, the third edition of which was published in1985. In this new book, Professor Corden has fully rewritten the text, but retains the discursive, informal, reader-friendly style of the earlier editions. In this new edition, Professor Corden has included twonew chapters which extend the treatment of macroeconomic policy, separating it into its fiscal and monetary branches. He also includes a new chapter on the role of the current account balance in determining macroeconomic policy. The author has brought his account of the present international monetary context up to date - characterised as the non-system - and has included a new analysis of European monetary issues, incorporating a review of the progress of the EMS towards fullmonetary union. The book also contains a provocative discussion of two highly topical issues: trade protection, and competitiveness, including both new theoretical analysis and such events as the recent GATTagreement.

Author Biography

W. Max Corden is at Johns Hopkins University, Washington.

Table of Contents

IntroductionPart 1: Open Economy Macroeconomics1: A Model of Balance-of-Payments Policy2: Income Distribution, Wage Rigidity and Balance-of-Payments Policy3: Fiscal Policy, Monetary Policy and Capital Mobility4: Inflation and Exchange Rate Policy5: Does the Current Account Matter?Part 2: EMS and Monetary Integration6: The European Monetary System7: Monetary Integration8: Maastricht and the Transition to Monetary UnionPart 3: The Managed-Floating High-Capital-Mobility Non-System9: The International Macrosystem10: The International Transmission of Disturbances11: What Determines Exchange Rates in a Floating Rate Regime?12: Macroeconomic Policy Co-ordinationPart 4: Protection and Competitiveness13: Macroeconomic Policy and Protection14: What is the Competitiveness Problem?Part 5: The Future15: The Exchange Rate Regime: Choices and PlansBibliographyIndex

Review

`Good exposition, very technical, right level. Very good on comparative issues.'N. Sarantis, Kingston University`It is very good at the introductory level to understand real issues.'Dr D. Barn, University of Kent`The book is reasonably priced and well-designed. As always, Corden is very lucid.'Heikki Taimio, University of Joensuu, Finland`In Max Corden we have one of today's leading international economists. And in his latest book we surely have an essential addition to the library of any serious student of international monetary economics.'Times Higher Education Supplement`An essential addition to the library of any serious student of international monetary economics ... a very useful text for students of both economics and international law and one which reveals the extent to which these two disciplines depend on each other ... The book provides a comprehensive coverage of the subject of trade regulation.'Times Higher Education Supplement

Long Description

In an outstanding account of exchange rates inthe international monetary system, W. Max Corden considers the essential issues in international macroeconomics. The author takes as his model the macroeconomic situation of a country with an open economy, and explains the effects of domestic fiscal and monetary macroeconomic policy on exchange rates. He clearly analyses the choices faced by governments attempting to manage both the domestic
inflation rate and the external exchange rate and current account balance. Professor Corden then discusses the European Exchange Rate mechanism, and provides a sceptical analysis of the possibilities for
monetary union in Europe, and for international policy coordination in general. He gives equal weight to discussion of the present US-centred international monetary system outside the ERM, and combines theoretical models with an account of the actual determination of floating exchange rates. Although the book itself is orientated towards monetary rather than trade issues, the author discusses two topical issues: the role of protectionist policies, and the idea of competitiveness. Finally, he
looks at the future of the international monetary system and the series of current reform proposals. Students will find this book useful because the author covers essential
issues lucidly and authoritatively. The exposition is entirely non-mathematical. Postgraduate students and academics will be interested since Corden is a distinguished writer on international trade and policy, and his arguments are powerfully presented. New to this edition: This is a revised and expanded edition of a previous book by Corden, Inflation, Exchange Rates and the World Economy, the third edition of which was published in
1985. In this new book, Professor Corden has fully rewritten the text, but retains the discursive, informal, reader-friendly style of the earlier editions. In this new edition, Professor Corden has included two
new chapters which extend the treatment of macroeconomic policy, separating it into its fiscal and monetary branches. He also includes a new chapter on the role of the current account balance in determining macroeconomic policy. The author has brought his account of the present international monetary context up to date - characterised as the non-system - and has included a new analysis of European monetary issues, incorporating a review of the progress of the EMS towards full
monetary union. The book also contains a provocative discussion of two highly topical issues: trade protection, and competitiveness, including both new theoretical analysis and such events as the recent GATT
agreement.

Review Text

`Good exposition, very technical, right level. Very good on comparative issues.'
N. Sarantis, Kingston University
`It is very good at the introductory level to understand real issues.'
Dr D. Barn, University of Kent
`The book is reasonably priced and well-designed. As always, Corden is very lucid.'
Heikki Taimio, University of Joensuu, Finland
`In Max Corden we have one of today's leading international economists. And in his latest book we surely have an essential addition to the library of any serious student of international monetary economics.'
Times Higher Education Supplement
`An essential addition to the library of any serious student of international monetary economics ... a very useful text for students of both economics and international law and one which reveals the extent to which these two disciplines depend on each other ... The book provides a comprehensive coverage of the subject of trade regulation.'
Times Higher Education Supplement

Review Quote

'The book is reasonably priced and well-designed. As always, Corden is very lucid.'Heikki Taimio, University of Joensuu, Finland

Details