"With years of experience in policymaking, buttressed by academic research, Joseph Gagnon has produced a masterful study of the exchange rate and its role in the workings of the global economy. His account brings the most recent developments in international trade and macroeconomic theory to bear on both the determinants—and effects—of exchange rate movements. This book will prove invaluable for anybody who seeks to understand the ongoing debate over how to best formulate macroeconomic policy in these uncertain times."
——Menzie Chinn, Professor of Public Affairs and Economics, University of Wisconsin
"I was greatly impressed by Gagnon's book. It is remarkably comprehensive and clearly written...."
——Peter Kenen, Walker Professor of Economics and International Finance Emeritus, Princeton University
"It's now easy to catch up with the modern economics of exchange rates, since Gagnon's book provides the state of the art. He provides a comprehensive overview and makes a compelling case for floating exchange rates. Any serious policymaker will want to have read it."
——Andrew K. Rose, Associate Dean and Chair of the Faculty, Haas School of Business, University of California, Berkeley