Publisher's Synopsis
The financial markets have turned open-economy monetary economics on its head. This book explains what the markets have done and the implications of these developments for theory and policy in the practices of the 1980s and 1990s, and aims to escape from the Keynsesian modes of thought and expression.;The book evolved from a course in open-economy monetary economics at York University (Toronto) and is based on a case, or problem method of instruction; many of its principal points are embedded in analyses of 144 problems rather than in formal lectures. Lab work is seen to be critical in the use of the book. Each chapter contains a lecture, followed by a problem set that is then annotated. The problems deal with many practical problems and permit coverage of far-ranging issues through often quite informal annotations. The author has sought to bring economic theory back in touch with financial-market practices; the book embodies the remarkable idea that the markets have contributed to financial theory.
