Principles of International Finance and Open Economy Macroeconomics: Theories, Applications, and Policies presents a macroeconomic framework for understanding and analyzing the global economy from the perspectives of emerging economies and developing countries.

Unlike most macroeconomic textbooks, which typically emphasize issues about developed countries while downplaying issues related to developing countries, this book emphasizes problems in emerging economies, including those in Latin American countries.

It also explains recent developments in international finance that are essential to a thorough understanding of the effects and implications of the recent financial crisis.

Reviews

"Cristina Terra’s superb intermediate international macroeconomics ?textbook fills an important void by providing analysis that is more mathematically rigorous than standard mass? market texts, yet remains quite accessible to both advanced undergraduates and first year graduate students.? The book is also different in its focus on emerging market policy issues, though the financial crisis has shown that advanced economy practitioners would do well to learn these lessons also.? Another very appealing aspect of the book is that a great deal of the material is encompassed within a unified analytical framework, helping students to see links between issues.? A very useful addition to the market, especially for juniors and seniors that are really too advanced for standard intermediate international macro books."? --Kenneth Rogoff, Harvard University

"The world of international finance has been?since 2007 one of the most interesting and complex?ever known. Developing countries are emerging, developed economies are facing serious fiscal and demographic challenges, the international monetary system is chaotic, balance of payments imbalances abound, exchange rates fluctuate, and challenges only increase. Cristina Terra's book?comes at a good time,?putting?these issues in order clearly and didactically. Covering basic concepts and relevant models in a clear and in a well-illustrated way, this book will serve as an essential reference for academics and practitioners."? --Arminio Fraga Neto, Gavea Investimentos, Brazil

"An inspiring?textbook on international macroeconomics,?developed?with?lucid economic intuition and illustrated with up-to-date issues in global economy." --Ou Hu, Youngstown State University

Feature

• Concentrates on developing country perspectives on International Finance and the Economy, including those in Latin American countries
• Provides case studies and publicly available data allowing readers to explore theories and their applications
• Explains recent developments in international finance that are essential to a thorough understanding of the effects and implications of the recent financial crisis
• Proposes a unified mathematical model accessible to those with basic mathematical skills

1 Introduction: Overview of the Book Content PART I: Definitions 2 How to Measure International Transactions 3 Foreign Exchange Market PART II: Current Account and Real Exchange Rate 4 What is the Optimal Level of the Current Account? 5 Equilibrium Real Exchange Rate PART III: Determination of the Nominal Exchange Rate 6 Money and Exchange Rate in the Long Run 7 Macroeconomic Policies and Exchange Rates in the Short Run 8 Portfolio Diversification and Capital Flows PART IV: Crises and Exchange Rate Policy 9 Currency Crises 10 Exchange Rate Regimes 11 Political Economy of Exchange Rate Policy