International Economics: Theory and Policy

by Krugman, Paul R.; Obstfeld, Maurice

• ISBN13: 9780201770377
• ISBN10: 0201770377
• Edition: 6th
• Format: Hardcover
• Copyright: 2003-01-01
• 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 to major policy questions, past and current. the Sixth Edition has been throughly revised to reflect the changes of today's global economic landscape, including the unprecedented expansion of globalization, the increasingly crucial nature of international economic relations, the gains from trade, and recent anti-globalization controversies such as the continuing debate over the optimal level of trade. Consistent with previous editions, the text presents an integrated treatment of the Ricardian model, 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 and the income-distribution effects of trade. the book also provides a unified model of open-economy macroeconomics, based on an asset-market approach to exchange rate determination with a central role for expectations.

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	xxii
Introduction	1	(8)
Part 1 International Trade Theory	9	(176)
Labor Productivity and Comparative Advantage: The Ricardian Model	10	(28)
Specific Factors and Income Distribution	38	(29)
Resources and Trade: The Heckscher-Ohlin Model	67	(26)
The Standard Trade Model	93	(27)
Economies of Scale, Imperfect Competition, and International Trade	120	(40)
International Factor Movements	160	(25)
Part 2 International Trade Policy	185	(108)
The Instruments of Trade Policy	186	(32)
The Political Economy of Trade Policy	218	(37)
Trade Policy in Developing Countries	255	(21)
Controversies in Trade Policy	276	(17)
Part 3 Exchange Rates and Open-Economy Macroeconomics	293	(238)
National Income Accounting and the Balance of Payments	294	(30)
Exchange Rates and the Foreign Exchange Market: An Asset Approach	324	(33)
Money, Interest Rates, and Exchange Rates	357	(31)
Price Levels and the Exchange Rate in the Long Run	388	(45)
Output and the Exchange Rate in the Short Run	433	(48)
Fixed Exchange Rates and Foreign Exchange Intervention	481	(50)
Part 4 International Macroeconomic Policy	531	(176)
The International Monetary System, 1870-1973	532	(36)
Macroeconomic Policy and Coordination under Floating Exchange Rates	568	(36)
Optimum Currency Areas and the European Experiences	604	(32)
The Global Capital Market: Performance and Policy Problems	636	(29)
Developing Countries: Growth, Crisis, and Reform	665	(42)
Mathematical Postscripts	707	(30)
Postscript to Chapter 3: The Specific Factors Model	708	(6)
Postscript to Chapter 4: The Factor Proportions Model	714	(3)
Postscript to Chapter 5: The Trading World Economy	717	(9)
Postscript to Chapter 6: The Monopolistic Competition Model	726	(2)
Postscript to Chapter 21: Risk Aversion and International Portfolio Diversification	728	(9)
Index	737