Asset Markets and Exchange Rates: Modeling an Open Economy

Paperback (Print)
Buy New
Buy New from
Used and New from Other Sellers
Used and New from Other Sellers
from $1.99
Usually ships in 1-2 business days
(Save 97%)
Other sellers (Paperback)
  • All (8) from $1.99   
  • New (3) from $68.44   
  • Used (5) from $1.99   


This paperback edition consists of the first three parts of Allen and Kenen's major book, Asset Markets, Exchange Rates, and Economic Integration. These three parts stand alone, as the authors intended and as reviewers have commented. In parts four and five of that volume they extend their model to two countries trading with the outside world and analyze questions of economic integration. The authors synthesize and extend recent developments in international monetary theory using a general model of an open economy that trades goods and assets with the outside world. The model embodies the asset market or portfolio approach to analyzing balance-of-payments adjustment. Exchange rates are determined in the short run by conditions in the asset markets and in the long run by conditions in the goods markets. The goods markets include an export good, and import good, and a nontradeable good. Allen and Kenen show that different assumptions about the substitutability between goods or between assets can generate several popular models as special cases of their own.

Read More Show Less

Editorial Reviews

From the Publisher
'It seems to me an important achieveent. It works out in detail and in a notably systematic fashion the implications of the new approach to balance of payments or exchange rate theory. One of its most pleasing characteristics is its honesty. The implications of various assumptions are made very clear, and their limitations pointed out.' W. M. Corden, The Economic Journal

'It can justifiably be regarded as an updated version of Meade's treatise on the balance of payments which synthesized neoclassical price theory and Keynesian expenditure theory … rigorous, elegant, lucid and masterly, this treatise is an outstanding contribution in the taxonomic tradition.' P. Robson, Economica

Read More Show Less

Product Details

  • ISBN-13: 9780521274067
  • Publisher: Cambridge University Press
  • Publication date: 3/28/2002
  • Edition description: Abridged
  • Pages: 336
  • Product dimensions: 5.98 (w) x 8.98 (h) x 0.75 (d)

Table of Contents

Preface; Part I. Introduction: 1. An agenda; Part II. Modeling an Open economy: 2. The structure of the model; 3. Solving the model; 4. Comparative statics: goods-market disturbances; 5. Comparative statics: asset-market and compound disturbance; 6. Dynamics under pegged and flexible exchange rates; Part III. Extending the Model: 7. Claims, caveas, and simplifications; 8. On money, income, and insulation; 9. Expectations, speculation, and exchange-rate stability; 10. On the specification of fiscal policy; Part IV. Analyzing Interdependence: 11. A two-country model; 12. Similarities and symmetries in goods and asset markets; 13. Comparative statics in the two-country model; Part V. The Theory of Financial Integration: 14. Dimensions of integration; 15. Market integration, interdependence, and monetary policy under pegged exchange rates; 16. The analytics of a monetary union; 17. Market integration, interdependence, and fiscal policy under pegged exchange rates; 18. Fiscal policy in a monetary union; Appendixes; Glossary; Index.

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)