1. Introduction; Part I. Exchange Rates and Prices: 2. Purchasing power parity theory and the Big Mac Index; 3. Commodity currencies and currency commodities; Part II. Commodity Prices: 4. Three facts about marijuana prices; 5. Patterns in world metal prices; Part III. International Patterns of Incomes, Prices and Consumption: 6. Disparities in incomes and prices internationally; 7. Affluence and food: a simple way to infer incomes.
Discusses economic issues associated with exchange rates, commodity prices, the economic size of countries and alternatives to PPP exchange rates.
Kenneth W. Clements has been at the University of Western Australia since 1981 as Winthrop Professor of Economics and since 2008, BHP Billiton Research Fellow at the UWA Business School. In 2009, his book (co-authored with X. Zhao) Economics and Marijuana was published by Cambridge University Press. He is a Fellow of the Academy of Social Sciences in Australia and in 2009 received from the Australian Learning and Teaching Council a Citation for Outstanding Contributions to Student Learning.
'The next few decades in global markets are likely to be dominated
by the impact of the growth in China and the rest of Asia. Clements
provides not only a thorough analysis of currencies and commodity
prices to understand this development, he explicitly addresses -
and provides great insight into - the mispricing that happens in
such markets … This book is not only a very useful source to
understand our changing economic world but it also provides a
plethora of useful data from a variety of sources - and the output
from Clements' own research - to satisfy both the needs of
academics and those analysing financial markets across asset
classes. There is sufficient information in an accessible form for
readers to extend their own research using Clements' methodology.'
Ron Bewley, Woodhall Investment Research Pty Ltd and former Chief
Investment Officer, Commonwealth Bank of Australia
'This book has a broad sweep, analyzing diverse issues such as
purchasing power parities, commodity and marihuana prices, income
and consumption comparisons across countries. What makes reading
this book so exciting is the constant moving from theory to
practice and back to theory; and the discovery that understanding
one subject helps to understand other, at first sight, unrelated
subjects.' Paul De Grauwe, London School of Economics and Political
Science
'The concepts of demand, supply and equilibrium tease out the roles
of commodities and exchange rates in a nation's fortunes. Renowned
for his pioneering yet accessible research, this book finds
Professor Clements at the peak of his powers. The book will be a
key reference in advanced courses on international economics,
international finance and applied econometrics.' Geoff Kingston,
Macquarie University
''Currency values, prices, consumption and incomes are intimately
linked and are at the heart of the economic performance of all
countries', Kenneth W. Clements tells us in the introduction to
Currencies, Commodities and Consumption. And in the pages that
follow Clements melds theory and empirics in interesting ways to
provide important insights into the behavior of all of these
variables. The specific topics [he] covers include purchasing power
parity and The Economist's Big Mac Index, commodity currencies and
exchange rates, commodity-price behavior, differences in real
incomes and price levels internationally and the links between
expenditures on food and real incomes. The reader who pays
attention to what Clements has to say will come away with a better
knowledge and deeper understanding of all of these issues.' James
R. Lothian, Distinguished Professor of Finance and Toppeta Family
Chair in Global Financial Markets, Fordham University
'Professor Kenneth W. Clements' book is a major contribution to the
literature on the important relationship between currencies,
commodities and consumption. The work is creative, highly
professional, and very informative. The analysis is anchored in
deep historical perspective with sophisticated empirical
techniques. His presentation of the material is clear and
accessible. A very useful book.' Jacob A. Frenkel, Chairman, J. P.
Morgan Chase International
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