Journal of Banking & Finance Vol. 21 No. 11-12 1997
Recent developments in international finance: A guide to research
Abstract
This is a critical evaluation of the state of the art in International Finance. Several points of reference are selected: The Mundell–Fleming–Branson (MFP) paradigm, the monetary model with purchasing power parity (PPP) as a long run anchor, the representative agent approach and the natural real exchange rate (NATREX) model. Their strengths and weaknesses are identified from both a theoretical and empirical point of view. We conclude with a suggestion of what is a fruitful explanation of medium to longer run movements in the real exchange rate and the current account.
- DOI
- 10.1016/s0378-4266(97)00035-6
- Volume
- 21
- Issue
- 11-12
- Pages
- 1685-1720
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib