Philipp Harms presents the concepts and methods of modern international
macroeconomics in a comprehensive yet accessible way. He motivates the
topics discussed with regard to their practical relevance and enables
the reader to assess the contributions of theoretical approaches and
results. Among the topics covered are the determinants of current
accounts and international capital flows, the mechanisms behind the
fluctuations of real and nominal exchange rates as well as the scope and
limits of economic policy in open economies. Real and monetary phenomena
are analyzed within a coherent analytical framework, and the theoretical
results are confronted with the available empirical evidence. The
English edition updates the data presented in the German version, adopts
new conceptual developments, and repeatedly refers to the recent
financial crises.