The instability of exchange rates

Author: Paul Krugman (USA)
Publisher:
Publish Date: 2000-12-01
Features: As a branch of economic science, international economics primarily studies various economic behaviors and conditions under different distribution conditions. It examines not only micro-level behaviors such as factor mobility but also macro-level issues like exchange rates, balance of payments, price stability, and economic growth. For most open economies, international economics is a more realistic and significant field of study. Given the differences in specific research subjects, international economics is divided into two main parts: international trade and international finance. In recent decades, with the continuous development of the global economy, new phenomena and issues have emerged, driving rapid advancements in research within these two fields.
In the field of international trade, the growth of intra-industry trade and trade between developed countries has significantly altered traditional perceptions of international trade. The emergence of the "New Trade Theory," which incorporates concepts like imperfect competition and economies of scale, has been a response to these changes. The evolving patterns of trade have prompted further investigation into the technological, geographical, and historical factors that determine trade foundations. In policy terms, this has led to the development of "strategic trade policies" and the study of income distribution among interest groups through "political economy." Additionally, research on multinational corporations and regional economic integration has gradually become a crucial theoretical component.
In the field of international finance, the integration of global capital markets, the establishment of the European Monetary System, the opening of developing countries, and the transition from planned economies have triggered a series of financial crises. How to mitigate financial risks, reduce external shocks, and maintain macroeconomic stability during openness has become a key topic in policy-making and international financial research.
To better understand the theories and applications of international economics, we have compiled this series of translations titled "International Economics Translation Series." Unlike standard textbooks on international economics, the works selected for this series focus primarily on the cutting edge of international economics, the analysis of real-world issues, and empirical research in international economic relations. For theorists, this series will help clarify the application of fundamental principles in international economics. For practitioners, the series will provide accessible language and concrete analyses to aid in mastering the theories of international economics.
At the dawn of the 21st century, as China prepares to join the World Trade Organization, we dedicate this series to the Chinese economic workers who are preparing to meet the challenges of international economics.