This book presents an extensive survey of the theory and empirics of international parity conditions which are critical to our understanding of the linkages between world markets and the movement of interest and exchange rates across countries. The book falls into three parts dealing with the theory, methods of econometric testing and existing empirical evidence. Although it is intended to provide a consensus view on the subject, the authors also make some controversial propositions, particularly on the purchasing power parity conditions.

The vision of the founders of the United Nations, the World Bank and the IMF some fifty years ago contrasts sharply with the often weak and limited performance of the institutions they created. The 15 papers in this volume critically assess this record in order to set out proposals for strengthening and restructuring the institutions to meet the new challenges of the 21st century. The changes proposed emphasize human security rather than military security, poverty eradication, gender equity and new international mechanisms to offset growing global inequality.

Foreign Exchange in Practice, now in its 3rd edition, is the single reference to the foreign exchange market any financial practitioner needs to have. It explains the concepts involved in foreign exchange and their application to real-life situations. The book was originally developed as a textbook for the Citibank Bourse Course, an intensive course available to clients and staff of Citibank to improve their mastery of these complex markets. The course has been taught in 50 countries since 1975. This new edition includes the Euro amongst its currencies, expansion of material on interest rate concepts, exotic options and value at risk.

This book provides an original and wide-ranging analysis of the impact of Economic and Monetary Union (EMU) on economic governance in the EU and in several key Member States within and outside the Euro area. Its emphasis is on adaptation: how EMU encourages change in national and EU institutions and in national economic regimes. It brings together economic, political science and legal perspectives to explain how national economies adapted, the dynamics of policy-making and the complex web of laws, processes and actors in the EMU.

Steven Kettell analyzes the development of exchange rate policymaking from a Marxist perspective. He examines and provides a new means of understanding three key policymaking episodes in Britain: the return to the gold standard in 1925, membership of the European Exchange Rate Mechanism from 1990-1992, and the possibility of joining the Single European Currency. The alternative means of understanding these policy episodes provides a basis for making wider generalizations about the political economy of exchange rate policymaking.

As financial markets are liberalized, bank management and bank regulators and supervisors are faced with new and complex challenges. In general, bank management is faced with the challenge of managing in a competitive and volatile market environment; bank supervisors have the challenge of establishing the framework that permits risk-taking without endangering the banks' safety and soundness. The book identifies and discusses a set of specific challenges, and suggests approaches that may be used by management and supervisors to surmount them.

This volume examines the process by which Keynes' message got interpreted and re-interpreted and thus separated into a Left and a Right political-economic stream. Archival evidence is used to shed a fresh light on many of the controversies (and colourful characters) of the Keynesian tradition, including Dennis Robertson, Don Patinkin, Roy Harrod, Sidney Weintraub, Richard Kahn, Joan Robinson, Nicholas Kaldor and, of course, John Maynard Keynes.

In 1999 a number of member states of the European Union will adopt a common currency. This change in the monetary system requires that a Eur opean Central Bank is set up and a common monetary policy is pursued. There is general agreement among those countries which are likely to join the common currency that price level stability has to be the ultimate objec tive of monetary po1icy. It is an open issue, however, what kind of policy is best suited for that purpose. The alternative strategies under discussion are a direct inflation targeting, an intermediate monetary targeting or a mixture of both. For these policy strategies a stable money demand relation is of cen tral importance. Therefore a workshop on Money Demand in Europe was organized at the Humboldt University in Berlin on October 10/11, 1997. This research conference brought together academic and central bank econo mists and econometricians predominantly from Europe to discuss issues on specification, estimation and, in particular, stability of money demand rela tions both in a single equation and in a systems framework. In this volume revised versions of the papers presented and discussed at the workshop are collected. The volume thereby gives an overview of money demand analysis in Europe on the eve of the introduction of the Euro in some European countries. It contributes to the discussion on a suitable monetary policy for the new European Central Bank."

This book examines the monetary integration of the group of countries which constitute the Economic and Monetary Union (EMU), signalling the emergence of a truly European economy. The authors devote their considerable expertise to the analysis of macroeconomic policies within EMU and the economic analysis underlying the conduct of these policies.The authors first analyse the development of the euro area from a historical perspective. They then examine the criteria for the first eleven countries to qualify for EMU and speculate whether the same countries would have joined if the qualification date had been a year later. The authors go on to examine purely macroeconomic aspects of the euro area including: the degree of real convergence in the euro area the short-run and long-run determinants of the euro area's current account the euro area's financial markets and implications for the international role of the euro the organizational structure and internal procedures of the European System of Central Banks the Eurosystem's single monetary policy strategy fiscal policy and the Stability and Growth Pact exchange rate policy issues. This book will become required reading for scholars and policymakers in the area's of European studies, macroeconomic policy and financial economics.

The Stability and Growth Pact provides for the systematic surveillance of the fiscal policies of 25 EU member states. On this basis, this book provides an overview of themes in current fiscal policy, including the impact of ageing populations on fiscal sustainability, fiscal policy over the cycle, fiscal decentralization and expenditure reforms.

This study argues that owing to the wide diversity of nations, their often conflicting policies, and insistence on preserving their sovereignty, the processes of worldwide integration are facilitated by tying these countries together in a system of flexible exchange rates externally, while putting in place a rules-oriented monetary regime internally. The examination of the various issues involved in such an arrangement focuses on money and monetary policy drawing on historical, theoretical, philosophical, and empirical results.

It is a popular notion that money and output are separate and autonomous entities. Money and Inflation argues that this idea can neither explain the purchasing power of money nor its variations over time, and a new theory is therefore presented in its place. The book aims to provide the foundations for a new analysis of inflation from a macroeconomic perspective. The role of money is investigated in terms of value, prices, profit, and capital accumulation. The author argues that in order to gain a thorough comprehension of inflation it is necessary to focus on the formation of national income, not on its distribution. Sergio Rossi's new approach proposes a structural reform of modern banking systems, and outlines an original macro-theoretical investigation of measurement problems in price index theory. Despite its elective affinity with the works of Ricardo, Walras and Keynes, the new analysis overturns traditional concepts of money. The discussion elicits a deeper understanding of the conditions underlying today's inflationary pressures and prescribes new solutions to permanently eradicate them. This unique and path-breaking study will be of enormous interest to academics, researchers, and students involved in monetary economics, as well as monetary policy makers, and central bank and international banking officials.

This timely book provides an innovative examination of financial integration in the European Union - an issue that has become of paramount importance in view of the commencement of European Economic and Monetary Union. The author begins by assessing three different methods of financial integration in the European Union: interest parity conditions, savings-investment correlations and consumption correlations. He goes on to examine the fundamental determinants of financial integration and analyses the factors likely to influence the movement of capital within the European Union. The blend of empirical and theoretical research provides the reader with a comprehensive account of the progress made in integrating financial markets in the European Union. Integrating Financial Markets in the European Union will be essential reading for students and scholars of monetary economics, international finance and European integration. It will also prove useful to practitioners and policymakers working in central banking and government.

Follow the Money is based on a startling insight: there are three different forms of money, not just one; and the form of money a society implements determines the kind of society it will be, and what's more, how it will think. For money is not neutral. It is a product of human artifice, the particular expression of a particular society, that at the same time determines the further course of that society, not just in terms of economics, but in all areas of cultural endeavor. This thesis is implemented with verve. The book takes the reader on a journey through history, beginning with ancient Mesopotamia, through Phoenicia, Greece, and Rome, then through medieval and early-modern Europe in its interaction with the Near and Far East, all the way to the modern-day community of nations. It demonstrates in no uncertain terms just how decisive the institution of money has been, and at the same time just how misunderstood - its role, its effects, even the very form it takes. This is still the case, with the result that political choices and action end up entirely misguided. It is especially true of the attempt to address the credit and debt crises afflicting the world today. The way forward will only come through a better understanding of money as institution. This book is a first step in arriving at such an understanding. As such, it takes the form of historical inquiry, which is the only form such a first step can take. Follow the Money is illustrated and published in full color.

This book examines real and monetary analysis in economic paradigms and looks at real analysis in a range of economic theories. The book also examines interest rate, distribution and capital accumulation through post-Keynesian models, including the Kaldor-Robinson and Kaleckian models, and distribution conflict, inflation and monetary policy in a credit economy.

This collection examines the emerging issues, and the basic questions and analytical structures, arising from increasingly globalized financial markets. Topics covered include: an in-depth study of the exchange rate market, equilibrium and efficiency, inflation and interest rates, capital movement, the balance of payments and international reserves, foreign debt, country risk analysis, currency market arbitrage and speculative designs under market imperfection, international tax issues and trade liberalization, offshore banking and related issues. The contributors include: Alejandra Cabello; Benoit Charmichael, Jean-Claude Cosset, Krishnan Dandapani, Gilles Duteil, Christopher A. Erickson, Irene Finel-Honigman, Klaus P. Fischer, Shyamasri Ghosh, Larry Guin, M. Anaam Hashmi, Jannett K. Highfill, Anisul Islam, Muhammad Islam, Moosa Khan, Shahriar Khaksari, Ramakrishnan S. Koundinya, John P. LaJaunie, Eric Youngkoo Lee, Charles Maxwell, Bruce L. McManis, Mathew J. Morey, Abraham Mulugetta, Atsuyuki Naka, A.P. Palasvirta, Joanna Poznanska, Arun j. Prakesh, Emmanuel N. Roussakis, Neil Seitz, Michael Szenberg, William V. Weber, Elliott Willman, M. Razuibuz Zaman.

If America's tangible cash could be transformed into federal electronic currency (FEDEC), the social and economic benefits would be profound. Warwick argues eloquently why government should mandate cashlessness, then demonstrates not only why it can be done, but how to go about doing it. He shows that because the private sector will not and can not replace cash, government must do it; indeed, government FEDEC is superior to a system of private currencies. Cash handling costs the nation between one and two percent of the GDP, and cash is the lubricant for most of America's crime. By eliminating cash the saving from crime reduction alone would amount to hundreds of billions of dollars yearly. But naturally there would be issues of special concern if a FEDEC system were to become a hot public debate. Privacy, security, practicality, convenience are just some. Warwick tackles them here and, as no other books attempts to do, offers a practical plan for creating cashlessness. Well reasoned, meticulously documented, "Ending Cash" is a major contribution to what could soon become an important social debate--a debate that should, in the author's judgment, be started now.

"Ending Cash" argues that America's tangible cash should be transformed into a new federal electronic currency (FEDEC). Although Warwick admits that private bank card systems and/or the Internet may some day supplant cash, he explains why this will not happen soon, certainly not in our lifetime. Warwick emphasizes that the unrealized benefits of cashlessness far exceed the mere convenience that citizens generally look for and enjoy in bank card usage. While stressing the relative inefficiency of cash, said to run $60 billion a year just in handling costs, he illustrates the profound role cash plays in most crimes, including tax evasion, all of which could be prevented with a resultant public savings in the hundreds of billions of dollars each year if a federal system were created.

Against the background of consumer-oriented EFT systems, including credit-, debit-, and smart-card systems, Warwick explains the disinterest of industry in achieving cashlessness, as well as its organizational incapacity to carry it out. He thus argues the need for government involvement. Among the many facets he covers are privacy, security, technical requirements, and operational costs. He also explains the issue of employing private currencies as a replacement for cash, and how federal e-currency might impact the banking and bank card industries.

Fiscal Policy and Interest Rates in the European Union is a comprehensive study concerned with the potential effects of fiscal policy on financial markets in the European Union. It takes into account the gradual liberalization of capital movements throughout Western Europe and the institutional framework of the European monetary system. Klaas Knot takes a fresh approach to the impact of budget deficits on interest rates, especially in relation to international financial integration, and concludes that the increases in European budget deficits since the early 1970s have raised interest rates in the long term throughout the Union. In conclusion he argues that balanced budget deficits are necessary to maintain low interest rates. This important new book will be of interest to students, academics and policymakers concerned with monetary and public economics.

Financial (unofficial) dollarization is widely seen as a critical source of financial fragility in both developing and emerging economies. This volume provides a rigorous and balanced perspective on the causes and implications of dollarization, and the basic policies and options to deal with it: the adaptation of the monetary and prudential frameworks, the development of local-currency substitutes, and the scope for limiting dollarization through administrative restrictions.

Since I first published Management of Foreign Exchange Risk (Lexington Books, 1978), financial innovation-spurred, in part, by exploding volatility in currency prices-has revolutionized the theory and praxis of foreign exchange risk management. Old-fashioned forward contracts have surrendered market share to currency swaps and options as well as to their perpetually multiplying derivatives. Interestingly, forex derivatives now provide a low cost and highly efficient method of transferring risk from the firms that are exposed to risk but which would rather not be (i. e. , risk-hedgers) to those which are not exposed but which-in exchange for a fee-would assume some exposure to risk (i. e. , risk bearers). Perhaps more importantly, foreign exchange risk management, which was once a fairly mechanical task confmed to the international treasury function, is now permeating global strategic management. Indeed, since the demise of the Bretton Woods system of pegged exchange rates, the cost of forex hedging instruments has fallen so dramatically that firms can readily avail themselves of hedging products which can reduce unwanted risk, thereby potentially gaining a competitive advantage over rivals that do not. Management and Control of Foreign Exchange Risk has grown out of a fundamental revision of my earlier work published almost 20 years ago. In the process, my thinking about risk and its mathematics has greatly benefitted from my association with John Cozzolino and Charles Tapiero.

When General Motors and Chrysler declared bankruptcy in 2009 and immediately targeted thousands of dealerships for closure, tens of thousands of jobs and billions of dollars were on the line. Staring down two of the largest manufacturers in the world - as well as President Obama's Automotive Task Force - a determined triumvirate of car dealers banded together and went to Washington, D.C. to make their voices heard. Alan and Alisons Spitzer's fast-paced memoir takes readers behind the scenes as "citizen's lobbyists" traverse throughout all of the major corridors of power in the nation's capital to make their case and bring justice to thousands of small business across the country.

The volumes in this set, originally published between 1934 and 1994, draw together research by leading academics in the area of monetary economics and provides a rigorous examination of related key issues. The volumes examine monetary management and policy, equilibrium theory and credit rationing, as well as the general principles and practices of monetary economics. This set will be of particular interest to students of economics and finance.

Little attention has been paid to the role of the European economies, and notably of the euro area, in the current global imbalance of international payments and growth rates, leading to somewhat simplistic views of Euroland contributing to limiting those imbalances and providing a template of economic policy for the twenty-first century. In addition, an influential view continues to stress the need for deeper and more comprehensive supply-side, structural reforms as a means to protect Euroland from potentially adverse global developments and play a positive role in the orderly correction of global imbalances. The contributions in this volume challenge this view and compellingly question, from a variety of angles, many popular beliefs about the road to virtues of Euroland, providing a comprehensive and fresh framework to address important questions for the future of the euro, from a critique of current macroeconomic policy institutions to proposals for both soft and tougher modifications of euro institutions, all pointing to a key question for the future of Europe: will the single currency project contribute to world economic dynamism or will it be driven by the vigour and vitality of others? Will Euroland act as global player or global drag?

Taiwan, the Republic of China, has been striving to reform its financial system, and in the process, become a financial power, both regionally within the Pacific Rim of Asia, and, globally, given the rapidly increasing economic and financial significance of this area. In a unique book written from an interdisciplinary and well-balanced legal, financial and economics perspective that is both theoretical and practical, Semkow comprehensively analyzes and discusses the scope and direction financial and capital market reform has taken in Taiwan, and its implications for existing and newly emerging financial institutions in Taiwan and elsewhere.

Having introduced the problems underlying and the significance of Taiwanese financial reform, the author provides a thorough overview of the entire spectrum of existing and newly-emerging domestic and international financial institutions within Taiwan, and the various financial regulators, including the Ministry of Finance and the Central Bank of China, and the regulatory framework through which both financial institutions and regulators operate. The author examines in detail the various financial markets, including the financial, money, offshore banking, foreign exchange and securities (equity, debt and derivative) markets, and the major recent and imminent legislative and regulatory initiatives undertaken to reform these markets and elevate Taiwan's status as a regional, and by implication, a global financial center. This book will provide both foreign and Taiwanese financial, legal, business, and public policy and academic communities interested in Asian and Taiwanese business and finance an invaluable legal and financial guide to the rapidly emerging and increasing significance of Taiwanese banking and finance in this decade and into the next century.