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.
