This paper addresses issues in extending the affine class of term structure models to describe the joint dynamics of exchange rates and interest rates. A standa

Structural exchange rate modeling has proven extremely difficult during the recent post-1973 float. The disappointment climaxed with the papers of Meese and Rog

This paper studies dynamic-optimizing model of a semi-small open economy with sticky nominal prices and wages. The model exhibits exchange rate overshooting in

This textbook presents all major topics in international monetary theory, foreign exchange markets, international financial management and investment analysis.