International Economics (4th Edition)

Author: [USA] Paul Krugman / Maurice Obstfeld
Publisher:
Publication Date: 1998-11-01
Features: This book comprehensively introduces theoretical and policy issues in international economics, divided into four parts. The first part covers international trade theory. It begins with the classical Ricardo model, then explains the specific factors model, the Heckscher-Ohlin model, the standard trade model, and concludes with the recent contemporary international trade theory based on economies of scale and imperfect competition. This part also includes international factor flows. The second part is on international trade policy. It starts by analyzing the instruments of trade policy—primarily tariffs and quotas—then discusses the political economy of trade policy, as well as trade policies in developing countries and industrial policies in developed countries. The third part is on macroeconomic theory under exchange rates and open conditions. It begins with an introduction to the basic balance of payments, then covers asset approaches to exchange rate determination, the relationship between money, interest rates, and exchange rates, price levels and exchange rates in the short term, output and exchange rates in the long term, as well as fixed exchange rates and foreign exchange intervention. The fourth part is on international macroeconomic policy. It introduces the international monetary system, international macroeconomic policy under a floating exchange rate system, and other topics in international finance, such as optimal currency areas, global capital market integration, debt in developing countries, inflation control, reforms, and international economic issues in transition countries. Both authors of this book are renowned international economists with significant contributions to international trade and financial theory. Paul Krugman is currently a professor of economics at MIT, and Maurice Obstfeld is currently a professor and chair of the Economics Department at UC Berkeley. This international economics book emphasizes traditional theories while also incorporating many recent advancements and practical experiences of countries in the field of international economics.