International Monetary Economics

adjustment process analysis arbitrage assumed assumption bonds borrowing capital flows capital outflow capital-goods prices cash balances central bank chapter commodity consequence consumption covered interest arbitrage currency decline deficit demand for cloth depends deposits depreciation determined devaluation discussion dollar domestic dynamic economy elasticity approach England English equal equilibrium escudo Eurodollar Eurodollar market Euromarket excess demand exchange-rate exogenous exports factors figure fixed exchange rates fixed rates floating exchange rates floating rates fluctuations foreign assets foreign-exchange forward market function given gold import demand income increase inflation initial interest parity interest rates lending monetary approach monetary expansion monetary policy money supply offer curve output overshooting pegged portfolio Portugal Portugal's Portuguese price level purchasing-power parity real balances reduced relative prices result rise risk shift speculation spot sterling sterling price stocks Swiss Swiss francs terms of trade tion trade balance transaction costs wealth wine