International Economics : Theory and Policy

by Krugman, Paul R.; Obstfeld, Maurice

• ISBN13: 9780321033871
• ISBN10: 0321033876
• Edition: 5th
• Format: Hardcover
• Copyright: 1999-10-01
• Publisher: Addison-Wesley

Summary

International Economics, the best-selling textbook in the field, is written by two of the world's preeminent economists. Both the real trade portion of the book and the monetary portion are divided into a core of chapters focused on theory, followed by chapters applying the theory major policy questions, past and current. International Economics presents an integrated treatment of Ricardian, specific factors, factor endowments, and imperfect competition models of trade, along with in-depth analysis of empirical evidence. It covers the effects and causes of trade policy, including strategic trade policy, focusing on the income-distribution effects of trade. The book provides a unified model of open-economy macroeconomics based on an asset-market approach to exchange rate determination with a central role for expectations. The new edition contains updated coverage of the euro and of the causes and likely effects of economic and monetary union (EMU) in Europe. It also features an up-to-date treatment of developing countries' experiences in an all-new Chapter 22. The chapter focuses on long-run income convergence, disinflation and exchange rate regimes, recent crises in Latin America, Russia, and Asia, and reform of the international financial architecture.

Author Biography

Paul R. Krugman is the Ford International Professor of Economics at the Massachusetts Institute of Technology. Maurice Obstfeld is the Class of 1958 Professor of Economics at the University of California, Berkeley.

Table of Contents

Contents	vii
Preface	xxiii
Introduction	1	(8)
Part I International Trade Theory	9	(176)
Labor Productivity and Comparative Advantage: The Ricardian Model	11	(26)
Specific Factors and Income Distribution	37	(29)
Resources and Trade: The Heckscher-Ohlin Model	66	(26)
The Standard Trade Model	92	(27)
Economies of Scale, Imperfect Competition, and International Trade	119	(40)
International Factor Movements	159	(26)
Part II International Trade Policy	185	(112)
The Instruments of Trade Policy	187	(31)
The Political Economy of Trade Policy	218	(36)
Trade Policy in Developing Countries	254	(21)
Strategic Trade Policies in Advanced Countries	275	(22)
Part III Exchange Rates and Open-Economy Macroeconomics	297	(234)
National Income Accounting and the Balance of Payments	299	(30)
Exchange Rates and the Foreign Exchange Market: An Asset Approach	329	(34)
Money, Interest Rates, and Exchange Rates	363	(31)
Price Levels and the Exchange Rate in the Long Run	394	(43)
Output and the Exchange Rate in the Short Run	437	(48)
Fixed Exchange Rates and Foreign Exchange Intervention	485	(46)
Part IV International Macroeconomic Policy	531	(190)
The International Monetary System, 1870-1973	533	(35)
Macroeconomic Policy and Coordination under Floating Exchange Rates	568	(40)
Optimum Currency Areas and the European Experience	608	(33)
The Global Capital Market: Performance and Policy Problems	641	(37)
Developing Countries: Growth, Crisis, and Reform	678	(43)
Mathematical Postscripts	721	(2)
Postscript to Chapter 3: The Specific Factors Model	723	(6)
Postscript to Chapter 4: The Factor Proportions Model	729	(3)
Postscript to Chapter 5: The Trading World Economy	732	(9)
Postscript to Chapter 6: The Monopolistic Competition Model	741	(2)
Postscript to Chapter 21: Risk-Aversion and International Portfolio Diversification	743
Index	I-1