Edited by Mark P. Taylor, Dean and Professor of Finance, Warwick Business School, University of Warwick, UK and Meher Manzur, Associate Professor, School of Business and Law, Edith Cowan University, Australia

• Contents:PrefaceIntroduction Mark P. Taylor and Meher ManzurPART IGROUNDWORK 1. W.E.G. Salter (1959), ‘Internal and External Balance: The Role of Price and Expenditure Effects’2. T.W. Swan (1960), ‘Economic Control in a Dependent Economy’3. Robert A. Mundell (1961), ‘A Theory of Optimum Currency Areas’4. Benjamin J. Cohen (1963), ‘The Euro-Dollar, the Common Market, and Currency Unification’5. Kenneth Rogoff (2001), ‘Why Not a Global Currency?’6. John B. Taylor (2001), ‘The Rules of Exchange Rate in Monetary-Policy Rules’7. Charles Engel and Kenneth D. West (2005), ‘Exchange Rates and Fundamentals’8. James Lothian and Mark Taylor (2008), ‘Real Exchange Rates over the Past Two Centuries: How Important is the Harrod-Balassa-Samuelson Effect?’PART IIMONETARY POLICY AND EXCHANGE RATES 9. Michael B. Devereux and Charles Engel (2003), ‘Monetary Policy in the Open Economy Revisited: Price Setting and Exchange-Rate Flexibility’10. Jay C. Shambaugh (2004), ‘The Effect of Fixed Exchange Rates on Monetary Policy’11. Jordi Galí and Tommaso Monacelli (2005), ‘Monetary Policy and Exchange Rate Volatility in a Small Open Economy’12. Jean Imbs, Haroon Mumtaz, Morten O. Ravn and Hélène Rey (2005), ‘PPP Strikes Back: Aggregation and the Real Exchange Rate’13. Almuth Scholl and Harald Uhlig (2008), ‘New Evidence on the Puzzles: Results from Agnostic Identification on Monetary Policy and Exchange Rates’14. Nelson C. Mark (2009), ‘Changing Monetary Policy Rules, Learning and Real Exchange Rate Dynamics’15. Bianca De Paoli (2009), ‘Monetary Policy and Welfare in a Small Open Economy’16. Frédérique Bec, Mélika Ben Salem and Marine Carrasco (2010), ‘Detecting Mean Reversion in Real Exchange Rates from a Multiple Regime STAR Model’17. José Rodríguez-López (2011), ‘Prices and Exchange Rates: A Theory of Disconnect’PART IIICURRENCY UNIFICATION 18. Alberto Alesina and Robert J. Barro (2002), ‘Currency Unions’19. Jeffrey Frankel and Andrew Rose (2002), ‘An Estimate of the Effect of Common Currencies on Trade and Income’20. Pierpaolo Benigno (2004), ‘Optimal Monetary Policy in a Currency Area’21. David Fielding and Kalvinder Shields (2005), ‘Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the Franc Zone and ECCU’22. Barry Eichengreen (2006), ‘The Parallel-Currency Approach to Asian Monetary Integration’23. John H. Rogers (2007), ‘Monetary Union, Price Level Convergence and Inflation: How Close is Europe to the USA?’24. George Selgin and David VanHoose (2007), ‘The Euro and World Inflation’25. Helge Berger and Volker Nitsch (2008), ‘Zooming Out: The Trade Effect of the Euro in Historical Perspective’26. Thomas D. Willett, Orawan Permpoon and Clas Wihlborg (2010), ‘Endogenous OCA Analysis and the Early Euro Experience’27. Eduardo Levy Yeyati, Federico Sturzenegger and Iliana Reggio (2010), ‘On the Endogeneity of Exchange Rate Regimes’PART IVCURRENCY COMMODITIES AND COMMODITY CURRENCIES 28. Yu-chin Chen and Kenneth Rogoff (2003), ‘Commodity Currencies’29. Christian Broda (2004), ‘Terms of Trade and Exchange Rate Regimes in Developing Countries’30. Paul Cashin, Luis F. Céspedes and Ratna Sahay (2004), ‘Commodity Currencies and the Real Exchange Rate’31. Harry Bloch, A. Michael Dockery and David Sapsford (2006), ‘Commodity Prices and the Dynamics of Inflation in Commodity-Exporting Nations: Evidence from Australia and Canada’32. Kenneth W. Clements and Renée Fry (2008), ‘Commodity Currencies and Currency Commodities’33. Radhamés A. Lizardo and André V. Mollick (2010), ‘Oil Price Fluctuations and U.S. Dollar Exchange Rates’34. Ramazan Sari, Shawkat Hammoudeh and Ugur Soytas (2010), ‘Dynamics of Oil Price, Precious Metal Prices, and Exchange Rate’35. Yu-Chin Chen, Kenneth S. Rogoff and Barbara Rossi (2010), ‘Can Exchange Rates Forecast Commodity Prices?’36. David S. Jacks, Kevin H. O’Rourke and Jeffrey G. Williamson (2011), ‘Commodity Price Volatility and World Market Integration since 1700’

Edited by Mark P. Taylor, Dean and Professor of Finance, Warwick Business School, University of Warwick, UK and Meher Manzur, Associate Professor, School of Business and Law, Edith Cowan University, Australia

• Contents:PrefaceIntroduction Mark P. Taylor and Meher ManzurPART IGROUNDWORK 1. W.E.G. Salter (1959), ‘Internal and External Balance: The Role of Price and Expenditure Effects’2. T.W. Swan (1960), ‘Economic Control in a Dependent Economy’3. Robert A. Mundell (1961), ‘A Theory of Optimum Currency Areas’4. Benjamin J. Cohen (1963), ‘The Euro-Dollar, the Common Market, and Currency Unification’5. Kenneth Rogoff (2001), ‘Why Not a Global Currency?’6. John B. Taylor (2001), ‘The Rules of Exchange Rate in Monetary-Policy Rules’7. Charles Engel and Kenneth D. West (2005), ‘Exchange Rates and Fundamentals’8. James Lothian and Mark Taylor (2008), ‘Real Exchange Rates over the Past Two Centuries: How Important is the Harrod-Balassa-Samuelson Effect?’PART IIMONETARY POLICY AND EXCHANGE RATES 9. Michael B. Devereux and Charles Engel (2003), ‘Monetary Policy in the Open Economy Revisited: Price Setting and Exchange-Rate Flexibility’10. Jay C. Shambaugh (2004), ‘The Effect of Fixed Exchange Rates on Monetary Policy’11. Jordi Galí and Tommaso Monacelli (2005), ‘Monetary Policy and Exchange Rate Volatility in a Small Open Economy’12. Jean Imbs, Haroon Mumtaz, Morten O. Ravn and Hélène Rey (2005), ‘PPP Strikes Back: Aggregation and the Real Exchange Rate’13. Almuth Scholl and Harald Uhlig (2008), ‘New Evidence on the Puzzles: Results from Agnostic Identification on Monetary Policy and Exchange Rates’14. Nelson C. Mark (2009), ‘Changing Monetary Policy Rules, Learning and Real Exchange Rate Dynamics’15. Bianca De Paoli (2009), ‘Monetary Policy and Welfare in a Small Open Economy’16. Frédérique Bec, Mélika Ben Salem and Marine Carrasco (2010), ‘Detecting Mean Reversion in Real Exchange Rates from a Multiple Regime STAR Model’17. José Rodríguez-López (2011), ‘Prices and Exchange Rates: A Theory of Disconnect’PART IIICURRENCY UNIFICATION 18. Alberto Alesina and Robert J. Barro (2002), ‘Currency Unions’19. Jeffrey Frankel and Andrew Rose (2002), ‘An Estimate of the Effect of Common Currencies on Trade and Income’20. Pierpaolo Benigno (2004), ‘Optimal Monetary Policy in a Currency Area’21. David Fielding and Kalvinder Shields (2005), ‘Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the Franc Zone and ECCU’22. Barry Eichengreen (2006), ‘The Parallel-Currency Approach to Asian Monetary Integration’23. John H. Rogers (2007), ‘Monetary Union, Price Level Convergence and Inflation: How Close is Europe to the USA?’24. George Selgin and David VanHoose (2007), ‘The Euro and World Inflation’25. Helge Berger and Volker Nitsch (2008), ‘Zooming Out: The Trade Effect of the Euro in Historical Perspective’26. Thomas D. Willett, Orawan Permpoon and Clas Wihlborg (2010), ‘Endogenous OCA Analysis and the Early Euro Experience’27. Eduardo Levy Yeyati, Federico Sturzenegger and Iliana Reggio (2010), ‘On the Endogeneity of Exchange Rate Regimes’PART IVCURRENCY COMMODITIES AND COMMODITY CURRENCIES 28. Yu-chin Chen and Kenneth Rogoff (2003), ‘Commodity Currencies’29. Christian Broda (2004), ‘Terms of Trade and Exchange Rate Regimes in Developing Countries’30. Paul Cashin, Luis F. Céspedes and Ratna Sahay (2004), ‘Commodity Currencies and the Real Exchange Rate’31. Harry Bloch, A. Michael Dockery and David Sapsford (2006), ‘Commodity Prices and the Dynamics of Inflation in Commodity-Exporting Nations: Evidence from Australia and Canada’32. Kenneth W. Clements and Renée Fry (2008), ‘Commodity Currencies and Currency Commodities’33. Radhamés A. Lizardo and André V. Mollick (2010), ‘Oil Price Fluctuations and U.S. Dollar Exchange Rates’34. Ramazan Sari, Shawkat Hammoudeh and Ugur Soytas (2010), ‘Dynamics of Oil Price, Precious Metal Prices, and Exchange Rate’35. Yu-Chin Chen, Kenneth S. Rogoff and Barbara Rossi (2010), ‘Can Exchange Rates Forecast Commodity Prices?’36. David S. Jacks, Kevin H. O’Rourke and Jeffrey G. Williamson (2011), ‘Commodity Price Volatility and World Market Integration since 1700’

Edited by Mark P. Taylor, Dean and Professor of Finance, Warwick Business School, University of Warwick, UK and Meher Manzur, Associate Professor, School of Business and Law, Edith Cowan University, Australia

• Contents:PrefaceIntroduction Mark P. Taylor and Meher ManzurPART IGROUNDWORK 1. W.E.G. Salter (1959), ‘Internal and External Balance: The Role of Price and Expenditure Effects’2. T.W. Swan (1960), ‘Economic Control in a Dependent Economy’3. Robert A. Mundell (1961), ‘A Theory of Optimum Currency Areas’4. Benjamin J. Cohen (1963), ‘The Euro-Dollar, the Common Market, and Currency Unification’5. Kenneth Rogoff (2001), ‘Why Not a Global Currency?’6. John B. Taylor (2001), ‘The Rules of Exchange Rate in Monetary-Policy Rules’7. Charles Engel and Kenneth D. West (2005), ‘Exchange Rates and Fundamentals’8. James Lothian and Mark Taylor (2008), ‘Real Exchange Rates over the Past Two Centuries: How Important is the Harrod-Balassa-Samuelson Effect?’PART IIMONETARY POLICY AND EXCHANGE RATES 9. Michael B. Devereux and Charles Engel (2003), ‘Monetary Policy in the Open Economy Revisited: Price Setting and Exchange-Rate Flexibility’10. Jay C. Shambaugh (2004), ‘The Effect of Fixed Exchange Rates on Monetary Policy’11. Jordi Galí and Tommaso Monacelli (2005), ‘Monetary Policy and Exchange Rate Volatility in a Small Open Economy’12. Jean Imbs, Haroon Mumtaz, Morten O. Ravn and Hélène Rey (2005), ‘PPP Strikes Back: Aggregation and the Real Exchange Rate’13. Almuth Scholl and Harald Uhlig (2008), ‘New Evidence on the Puzzles: Results from Agnostic Identification on Monetary Policy and Exchange Rates’14. Nelson C. Mark (2009), ‘Changing Monetary Policy Rules, Learning and Real Exchange Rate Dynamics’15. Bianca De Paoli (2009), ‘Monetary Policy and Welfare in a Small Open Economy’16. Frédérique Bec, Mélika Ben Salem and Marine Carrasco (2010), ‘Detecting Mean Reversion in Real Exchange Rates from a Multiple Regime STAR Model’17. José Rodríguez-López (2011), ‘Prices and Exchange Rates: A Theory of Disconnect’PART IIICURRENCY UNIFICATION 18. Alberto Alesina and Robert J. Barro (2002), ‘Currency Unions’19. Jeffrey Frankel and Andrew Rose (2002), ‘An Estimate of the Effect of Common Currencies on Trade and Income’20. Pierpaolo Benigno (2004), ‘Optimal Monetary Policy in a Currency Area’21. David Fielding and Kalvinder Shields (2005), ‘Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the Franc Zone and ECCU’22. Barry Eichengreen (2006), ‘The Parallel-Currency Approach to Asian Monetary Integration’23. John H. Rogers (2007), ‘Monetary Union, Price Level Convergence and Inflation: How Close is Europe to the USA?’24. George Selgin and David VanHoose (2007), ‘The Euro and World Inflation’25. Helge Berger and Volker Nitsch (2008), ‘Zooming Out: The Trade Effect of the Euro in Historical Perspective’26. Thomas D. Willett, Orawan Permpoon and Clas Wihlborg (2010), ‘Endogenous OCA Analysis and the Early Euro Experience’27. Eduardo Levy Yeyati, Federico Sturzenegger and Iliana Reggio (2010), ‘On the Endogeneity of Exchange Rate Regimes’PART IVCURRENCY COMMODITIES AND COMMODITY CURRENCIES 28. Yu-chin Chen and Kenneth Rogoff (2003), ‘Commodity Currencies’29. Christian Broda (2004), ‘Terms of Trade and Exchange Rate Regimes in Developing Countries’30. Paul Cashin, Luis F. Céspedes and Ratna Sahay (2004), ‘Commodity Currencies and the Real Exchange Rate’31. Harry Bloch, A. Michael Dockery and David Sapsford (2006), ‘Commodity Prices and the Dynamics of Inflation in Commodity-Exporting Nations: Evidence from Australia and Canada’32. Kenneth W. Clements and Renée Fry (2008), ‘Commodity Currencies and Currency Commodities’33. Radhamés A. Lizardo and André V. Mollick (2010), ‘Oil Price Fluctuations and U.S. Dollar Exchange Rates’34. Ramazan Sari, Shawkat Hammoudeh and Ugur Soytas (2010), ‘Dynamics of Oil Price, Precious Metal Prices, and Exchange Rate’35. Yu-Chin Chen, Kenneth S. Rogoff and Barbara Rossi (2010), ‘Can Exchange Rates Forecast Commodity Prices?’36. David S. Jacks, Kevin H. O’Rourke and Jeffrey G. Williamson (2011), ‘Commodity Price Volatility and World Market Integration since 1700’