Exchange rate volatility, trade and capital flows under alternative exchange rate regimes

"Professors Sercu and Uppal show that the theoretical models for exchange rates in this context are quite different from those put forth by monetary theorists and proponents of purchasing power parity arguments. The authors also find that an increase in exchange rate volatility may be associated with either an increase or decrease in trade, and they conclude by identifying the particular conditions under which a regime of fixed exchange rates maximizes welfare."--BOOK JACKET.