Maurice Obstfeld, Kenneth Rogoff
The MIT Press (September 12; 1996)
Foundations of International Macroeconomics is a ground-breaking book that presents the first comprehensive and up-to-date treatment of the fundamental problems that open economy macroeconomics and finance face today. Because of its straightforward and approachable writing style, it is appropriate for use in graduate courses in both domestic and international macroeconomics and finance. Additionally, it is suitable for first-year graduate courses in macroeconomics. Each chapter includes a wide variety of empirical evidence that is compiled from a variety of sources. The beginner student can find motivation and assistance in comprehending the practical value of the economic models that have been developed through the use of these examples. They are meant for more advanced researchers, and they highlight important insights and mysteries related to the field.
Intertemporal consumption and investment theory, government spending and budget deficits, finance theory and asset pricing, the implications of (and problems inherent in) international capital market integration, growth, inflation and seignorage, policy credibility, real and nominal exchange rate determination, and a large number of interesting special topics such as speculative attacks, target exchange rate zones, and parallels between immigration and capital are among the topics covered in this course. The vast majority of the most important results are derived for both the case of a small country and the case of the world economy. The first seven chapters are devoted to discussing various models of the real economy, while the last three chapters focus on the monetary aspect of the economy and include a novel strategy for bridging the gap that is typically present between real and monetary models.