The exchange rate and the economy.

Session 1. Theory of Exchange Rate Determination, 1 -- Terms-of- Trade Shocks, Real Exchange Rate Adjustment, and Sectoral and Aggregate Dynamics / R. Tiff Macklem, 1 -- External Shocks and Inflation Under a Real Exchange Rate Rule / Peter J. Montiel and Jonathan D. Ostry, 71 -- Session 2. Empirical Exchange Rate Models, 133 -- Unit Roots, Cointegration and Purchasing Power Parity: Canada and the United States, 1870-1991 / David R. Johnson, 133 -- A Forecasting Equation for the Canada-U.S. Dollar Exchange Rate / Robert Amana and Simon van Norden, 207 -- SESSION 3. Market Efficiency, 275 -- Regime Switching and Exchange Rate Bubbles / Simon van Norden, 275 -- Intertemporal Risk in Foreign Currency Markets / Thomas H. McCurdy and Ieuan G. Morgan, 325 -- SESSION 4. Exchange Rate Volatility and Trade, 361 -- Exchange Rates and Hysteresis in Trade / Richard G. Harris, 361 -- Trade Hysteresis: Theory and Evidence for Canada / Robert Amano, Eugene Beaulieu and Lawrence Schembri, 403 -- SESSION 5. Theory of Optimum Currency Areas: Extensions and Applications, 485 -- Optimum Currency Areas: A Cautionary Tale / Paul Fenton and John Murray, 485 -- Economic Integration, Currency Areas and Macroeconomic Policy / Douglas D. Purvis, 541 -- The panel. The Research Agenda / William R. White, Paul R. Masson, John F. Helliwell, 587 -- The participants, 621.