| Description |
731 pages : colour illustrations, colour maps ; 26 cm |
| Series |
The Pearson series in economics |
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Pearson series in economics.
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| Contents |
Contents note continued: "Prophylactic" Measures -- Coping with Crisis -- Case Study: China's Undervalued Currency -- Understanding Global Capital Flows and the Global Distribution of Income: Is Geography Destiny? -- Summary -- Mathematical Postscripts -- Postscript to Chapter 5: The Factor Proportions Model -- Factor Prices and Costs -- Goods Prices and Factor Prices -- Factor Supplies and Outputs -- Postscript to Chapter 6: The Trading World Economy -- Supply, Demand, and Equilibrium -- Supply, Demand, and the Stability of Equilibrium -- Effects of Changes in Supply and Demand -- Economic Growth -- A Transfer of Income -- A Tariff -- Postscript to Chapter 8: The Monopolistic Competition Model -- Postscript to Chapter 21: Risk Aversion and International Portfolio Diversification -- An Analytical Derivation of the Optimal Portfolio -- A Diagrammatic Derivation of the Optimal Portfolio -- The Effects of Changing Rates of Return |
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Contents note continued: 8.Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises -- The Theory of Imperfect Competition -- Monopoly: A Brief Review -- Monopolistic Competition -- Monopolistic Competition and Trade -- The Effects of Increased Market Size -- Gains from an Integrated Market: A Numerical Example -- The Significance of Intra-Industry Trade -- Case Study: The Emergence of the Turkish Automotives Industry -- Firm Responses to Trade: Winners, Losers, and Industry Performance -- Performance Differences Across Producers -- The Effects of Increased Market Size -- Trade Costs and Export Decisions -- Dumping -- Case Study: Antidumping as Protectionism -- Multinationals and Outsourcing -- Case Study: Patterns of Foreign Direct Investment Flows Around the World -- The Firm's Decision Regarding Foreign Direct Investment -- Outsourcing -- Consequences of Multinationals and Foreign Outsourcing -- Summary -- |
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Contents note continued: A Permanent Fiscal Expansion -- Macroeconomic Policies and the Current Account -- Gradual Trade Flow Adjustment and Current Account Dynamics -- The J-Curve -- Exchange Rate Pass-Through and Inflation -- Box: Exchange Rates and the Current Account -- The Liquidity Trap -- Summary -- Appendix 1 Intertemporal Trade and Consumption Demand -- Appendix 2 The Marshall-Lerner Condition and Empirical Estimates of Trade Elasticities -- 18.Fixed Exchange Rates and Foreign Exchange Intervention -- Why Study Fixed Exchange Rates? -- Central Bank Intervention and the Money Supply -- The Central Bank Balance Sheet and the Money Supply -- Foreign Exchange Intervention and the Money Supply -- Sterilization -- The Balance of Payments and the Money Supply -- How the Central Bank Fixes the Exchange Rate -- Foreign Exchange Market Equilibrium Under a Fixed Exchange Rate -- Money Market Equilibrium Under a Fixed Exchange Rate -- A Diagrammatic Analysis -- |
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Contents note continued: Appendix: Determining Marginal Revenue -- pt. 2 International Trade Policy -- 9.The Instruments of Trade Policy -- Basic Tariff Analysis -- Supply, Demand, and Trade in a Single Industry -- Effects of a Tariff -- Measuring the Amount of Protection -- Costs and Benefits of a Tariff -- Consumer and Producer Surplus -- Measuring the Costs and Benefits -- Box: Tariffs for the Long Haul -- Other Instruments of Trade Policy -- Export Subsidies: Theory -- Case Study: Europe's Common Agricultural Policy -- Import Quotas: Theory -- Case Study: An Import Quota in Practice: U.S. Sugar -- Voluntary Export Restraints -- Case Study: A Voluntary Export Restraint in Practice: Japanese Autos -- Local Content Requirements -- Box: American Buses, Made in Hungary -- Other Trade Policy Instruments -- The Effects of Trade Policy: A Summary -- Summary -- Appendix: Tariffs and Import Quotas in the Presence of Monopoly -- The Model with Free Trade -- The Model with a Tariff -- |
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Contents note continued: Box: Comparative Advantage in Practice: The Case of Babe Ruth -- The Gains from Trade -- A Note on Relative Wages -- Box: The Losses from Nontrade -- Misconceptions About Comparative Advantage -- Productivity and Competitiveness -- The Pauper Labor Argument -- Box: Do Wages Reflect Productivity? -- Exploitation -- Comparative Advantage with Many Goods -- Setting Up the Model -- Relative Wages and Specialization -- Determining the Relative Wage in the Multigood Model -- Adding Transport Costs and Nontraded Goods -- Empirical Evidence on the Ricardian Model -- Summary -- 4.Specific Factors and Income Distribution -- The Specific Factors Model -- Box: What Is a Specific Factor? -- Assumptions of the Model -- Production Possibilities -- Prices, Wages, and Labor Allocation -- Relative Prices and the Distribution of Income -- International Trade in the Specific Factors Model -- Income Distribution and the Gains from Trade -- |
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Contents note continued: Box: Settling a Dispute---and Creating One -- Case Study: The Salmon War -- The Doha Disappointment -- Box: Do Agricultural Subsidies Hurt the Third World? -- Preferential Trading Agreements -- Box: Free Trade Area versus Customs Union -- Box: Do Trade Preferences Have Appeal? -- Case Study: Trade Diversion in South America -- Summary -- Appendix: Proving That the Optimum Tariff Is Positive -- Demand and Supply -- The Tariff and Prices -- The Tariff and Domestic Welfare -- 11.Trade Policy in Developing Countries -- Import-Substituting Industrialization -- The Infant Industry Argument -- Promoting Manufacturing Through Protection -- Case Study: Mexico Abandons Import-Substituting Industrialization -- Results of Favoring Manufacturing: Problems of Import-Substituting Industrialization -- Trade Liberalization Since 1985 -- Trade and Growth: Takeoff in Asia -- Box: India's Boom -- Summary -- 12.Controversies in Trade Policy -- |
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Contents note continued: Case Study: Gold Smuggling and the Birth of the UAE Dirham -- The Interwar Years, 1918-1939 -- The Fleeting Return to Gold -- International Economic Disintegration -- Case Study: The International Gold Standard and the Great Depression -- The Bretton Woods System and the International Monetary Fund -- Goals and Structure of the IMF -- Convertibility and the Expansion of Private Financial Flows -- Speculative Capital Flows and Crises -- Analyzing Policy Options for Reaching Internal and External Balance -- Maintaining Internal Balance -- Maintaining External Balance -- Expenditure-Changing and Expenditure-Switching Policies -- The External Balance Problem of the United States Under Bretton Woods -- Case Study: The End of Bretton Woods, Worldwide Inflation, and the Transition to Floating Rates -- The Mechanics of Imported Inflation -- Assessment -- The Case for Floating Exchange Rates -- Monetary Policy Autonomy -- Symmetry -- |
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Contents note continued: Consumption -- Investment -- Government Purchases -- The National Income Identity for an Open Economy -- An Imaginary Open Economy -- The Current Account and Foreign Indebtedness -- Saving and the Current Account -- Private and Government Saving -- Case Study: Government Deficit Reduction May Not Increase the Current Account Surplus -- The Balance of Payments Accounts -- Examples of Paired Transactions -- The Fundamental Balance of Payments Identity -- The Current Account, Once Again -- The Capital Account -- The Financial Account -- Net Errors and Omissions -- Official Reserve Transactions -- Case Study: The Assets and Liabilities of the World's Biggest Debtor -- Summary -- 14.Exchange Rates and the Foreign Exchange Market: An Asset Approach -- Exchange Rates and International Transactions -- Domestic and Foreign Prices -- Exchange Rates and Relative Prices -- The Foreign Exchange Market -- The Actors -- Characteristics of the Market -- |
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Contents note continued: Exchange Rates as Automatic Stabilizers -- Exchange Rates and External Balance -- Case Study: Monetary Regimes in Europe Post Bretton Woods -- Macroeconomic Interdependence Under a Floating Rate -- Case Study: Transformation and Crisis in the World Economy -- What Has Been Learned Since 1973? -- Monetary Policy Autonomy -- Symmetry -- The Exchange Rate as an Automatic Stabilizer -- External Balance -- The Problem of Policy Coordination -- Are Fixed Exchange Rates Even an Option for Most Countries? -- Summary -- Appendix: International Policy Coordination Failures -- 20.Optimum Currency Areas and the European Experience -- How the European Single Currency Evolved -- What Has Driven European Monetary Cooperation? -- The European Monetary System, 1979-1998 -- German Monetary Dominance and the Credibility Theory of the EMS -- Market Integration Initiatives -- European Economic and Monetary Union -- The Euro and Economic Policy in the Euro Zone -- |
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Contents note continued: Implications of Terms of Trade Effects: Who Gains and Who Loses? -- International Borrowing and Lending -- Intertemporal Production Possibilities and Trade -- The Real Interest Rate -- Intertemporal Comparative Advantage -- Summary -- Appendix: More on Intertemporal Trade -- 7.External Economies of Scale and the International Location of Production -- Economies of Scale and International Trade: An Overview -- Economies of Scale and Market Structure -- The Theory of External Economies -- Specialized Suppliers -- Labor Market Pooling -- Knowledge Spillovers -- External Economies and Market Equilibrium -- External Economies and International Trade -- External Economies, Output, and Prices -- External Economies and the Pattern of Trade -- Box: Holding the World Together -- Trade and Welfare with External Economies -- Dynamic Increasing Returns -- Interregional Trade and Economic Geography -- Box: Tinseltown Economics -- Summary -- |
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Contents note continued: Income, Wealth, and Growth in the World Economy -- The Gap Between Rich and Poor -- Has the World Income Gap Narrowed Over Time? -- Structural Features of Developing Countries -- Developing-Country Borrowing and Debt -- The Economics of Financial Inflows to Developing Countries -- The Problem of Default -- Alternative Forms of Financial Inflow -- The Problem of "Original Sin" -- The Debt Crisis of the 1980s -- Reforms, Capital Inflows, and the Return of Crisis -- East Asia: Success and Crisis -- The East Asian Economic Miracle -- Box: Why Have Developing Countries Accumulated Such High Levels of International Reserves? -- Asian Weaknesses -- Box: What Did East Asia Do Right? -- The Asian Financial Crisis -- Spillover to Russia -- Case Study: Can Currency Boards Make Fixed Exchange Rates Credible? -- Lessons of Developing-Country Crises -- Reforming the World's Financial "Architecture" -- Capital Mobility and the Trilemma of the Exchange Rate Regime -- |
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Contents note continued: Money as a Medium of Exchange -- Money as a Unit of Account -- Money as a Store of Value -- What Is Money? -- How the Money Supply Is Determined -- The Demand for Money by Individuals -- Expected Return -- Risk -- Liquidity -- Aggregate Money Demand -- The Equilibrium Interest Rate: The Interaction of Money Supply and Demand -- Equilibrium in the Money Market -- Interest Rates and the Money Supply -- Output and the Interest Rate -- The Money Supply and the Exchange Rate in the Short Run -- Linking Money, the Interest Rate, and the Exchange Rate -- U.S. Money Supply and the Dollar/Euro Exchange Rate -- Europe's Money Supply and the Dollar/Euro Exchange Rate -- Money, the Price Level, and the Exchange Rate in the Long Run -- Money and Money Prices -- The Long-Run Effects of Money Supply Changes -- Empirical Evidence on Money Supplies and Price Levels -- Money and the Exchange Rate in the Long Run -- Inflation and Exchange Rate Dynamics -- |
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Contents note continued: PPP in the Short Run and in the Long Run -- Case Study: Why Price Levels Are Lower in Poorer Countries -- Beyond Purchasing Power Parity: A General Model of Long-Run Exchange Rates -- The Real Exchange Rate -- Demand, Supply, and the Long-Run Real Exchange Rate -- Box: Sticky Prices and the Law of One Price: Evidence from Scandinavian Duty-Free Shops -- Nominal and Real Exchange Rates in Long-Run Equilibrium -- International Interest Rate Differences and the Real Exchange Rate -- Real Interest Parity -- Summary -- Appendix: The Fisher Effect, the Interest Rate, and the Exchange Rate Under the Flexible-Price Monetary Approach -- 17.Output and the Exchange Rate in the Short Run -- Determinants of Aggregate Demand in an Open Economy -- Determinants of Consumption Demand -- Determinants of the Current Account -- How Real Exchange Rate Changes Affect the Current Account -- How Disposable Income Changes Affect the Current Account -- |
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Contents note continued: Patterns of Exports Between Developed and Developing Countries -- Implications of the Tests -- Summary -- Appendix: Factor Prices, Goods Prices, and Production Decisions -- Choice of Technique -- Goods Prices and Factor Prices -- More on Resources and Output -- 6.The Standard Trade Model -- A Standard Model of a Trading Economy -- Production Possibilities and Relative Supply -- Relative Prices and Demand -- The Welfare Effect of Changes in the Terms of Trade -- Determining Relative Prices -- Economic Growth: A Shift of the RS curve -- Growth and the Production Possibility Frontier -- World Relative Supply and the Terms of Trade -- International Effects of Growth -- Case Study: Has the Growth of Newly Industrializing Countries Hurt Advanced Nations? -- Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD -- Relative Demand and Supply Effects of a Tariff -- Effects of an Export Subsidy -- |
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Contents note continued: Short-Run Price Rigidity versus Long-Run Price Flexibility -- Box: Money Supply Growth and Hyperinflation in Bolivia -- Permanent Money Supply Changes and the Exchange Rate -- Exchange Rate Overshooting -- Case Study: Can Higher Inflation Lead to Currency Appreciation? The Implications of Inflation Targeting -- Summary -- 16.Price Levels and the Exchange Rate in the Long Run -- The Law of One Price -- Purchasing Power Parity -- The Relationship Between PPP and the Law of One Price -- Absolute PPP and Relative PPP -- A Long-Run Exchange Rate Model Based on PPP -- The Fundamental Equation of the Monetary Approach -- Ongoing Inflation, Interest Parity, and PPP -- The Fisher Effect -- Empirical Evidence on PPP and the Law of One Price -- Explaining the Problems with PPP -- Trade Barriers and Nontradables -- Departures from Free Competition -- Differences in Consumption Patterns and Price Level Measurement -- Box: Some Meaty Evidence on the Law of One Price -- |
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Contents note continued: Sophisticated Arguments for Activist Trade Policy -- Technology and Externalities -- Imperfect Competition and Strategic Trade Policy -- Box: A Warning from Intel's Founder -- Case Study: When the Chips Were Up -- Globalization and Low-Wage Labor -- The Anti-Globalization Movement -- Trade and Wages Revisited -- Labor Standards and Trade Negotiations -- Environmental and Cultural Issues -- The WTO and National Independence -- Case Study: Bare Feet, Hot Metal, and Globalization -- Globalization and the Environment -- Globalization, Growth, and Pollution -- The Problem of "Pollution Havens" -- The Carbon Tariff Dispute -- Summary -- pt. 3 Exchange Rates and Open-Economy Macroeconomics -- 13.National Income Accounting and the Balance of Payments -- The National Income Accounts -- National Product and National Income -- Capital Depreciation and International Transfers -- Gross Domestic Product -- National Income Accounting for an Open Economy -- |
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Contents note continued: Spot Rates and Forward Rates -- Foreign Exchange Swaps -- Futures and Options -- The Demand for Foreign Currency Assets -- Assets and Asset Returns -- Box: Nondeliverable Forward Exchange Trading in Asia -- Risk and Liquidity -- Interest Rates -- Exchange Rates and Asset Returns -- A Simple Rule -- Return, Risk, and Liquidity in the Foreign Exchange Market -- Equilibrium in the Foreign Exchange Market -- Interest Parity: The Basic Equilibrium Condition -- How Changes in the Current Exchange Rate Affect Expected Returns -- The Equilibrium Exchange Rate -- Interest Rates, Expectations, and Equilibrium -- The Effect of Changing Interest Rates on the Current Exchange Rate -- The Effect of Changing Expectations on the Current Exchange Rate -- Case Study: What Explains the Carry Trade? -- Summary -- Appendix: Forward Exchange Rates and Covered Interest Parity -- 15.Money, Interest Rates, and Exchange Rates -- Money Defined: A Brief Review -- |
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Contents note continued: Stabilization Policies with a Fixed Exchange Rate -- Monetary Policy -- Fiscal Policy -- Changes in the Exchange Rate -- Adjustment to Fiscal Policy and Exchange Rate Changes -- Balance of Payments Crises and Capital Flight -- Managed Floating and Sterilized Intervention -- Perfect Asset Substitutability and the Ineffectiveness of Sterilized Intervention -- Box: Brazil's 1998-1999 Balance of Payments Crisis -- Foreign Exchange Market Equilibrium Under Imperfect Asset Substitutability -- The Effects of Sterilized Intervention with Imperfect Asset Substitutability -- Evidence on the Effects of Sterilized Intervention -- Reserve Currencies in the World Monetary System -- The Mechanics of a Reserve Currency Standard -- The Asymmetric Position of the Reserve Center -- The Gold Standard -- The Mechanics of a Gold Standard -- Symmetric Monetary Adjustment Under a Gold Standard -- Benefits and Drawbacks of the Gold Standard -- The Bimetallic Standard -- |
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Contents note continued: The Equation of Aggregate Demand -- The Real Exchange Rate and Aggregate Demand -- Real Income and Aggregate Demand -- How Output Is Determined in the Short Run -- Output Market Equilibrium in the Short Run: The DD Schedule -- Output, the Exchange Rate, and Output Market Equilibrium -- Deriving the DD Schedule -- Factors That Shift the DD Schedule -- Asset Market Equilibrium in the Short Run: The AA Schedule -- Output, the Exchange Rate, and Asset Market Equilibrium -- Deriving the AA Schedule -- Factors That Shift the AA Schedule -- Short-Run Equilibrium for an Open Economy: Putting the DD and AA Schedules Together -- Temporary Changes in Monetary and Fiscal Policy -- Monetary Policy -- Fiscal Policy -- Policies to Maintain Full Employment -- Inflation Bias and Other Problems of Policy Formulation -- Permanent Shifts in Monetary and Fiscal Policy -- A Permanent Increase in the Money Supply -- Adjustment to a Permanent Increase in the Money Supply -- |
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Contents note continued: The Gold Exchange Standard -- Case Study: The Demand for International Reserves -- Summary -- Appendix 1 Equilibrium in the Foreign Exchange Market with Imperfect Asset Substitutability -- Demand -- Supply -- Equilibrium -- Appendix 2 The Timing of Balance of Payments Crises -- pt. 4 International Macroeconomic Policy -- 19.International Monetary Systems: An Historical Overview -- Macroeconomic Policy Goals in an Open Economy -- Internal Balance: Full Employment and Price Level Stability -- External Balance: The Optimal Level of the Current Account -- Classifying Monetary Systems: The Open-Economy Trilemma -- International Macroeconomic Policy Under the Gold Standard, 1870-1914 -- Origins of the Gold Standard -- External Balance Under the Gold Standard -- The Price-Specie-Flow Mechanism -- The Gold Standard "Rules of the Game": Myth and Reality -- Internal Balance Under the Gold Standard -- Box: Hume versus the Mercantilists -- |
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Contents note continued: The Maastricht Convergence Criteria and the Stability and Growth Pact -- The European System of Central Banks -- The Revised Exchange Rate Mechanism -- The Theory of Optimum Currency Areas -- Economic Integration and the Benefits of a Fixed Exchange Rate Area: The GG Schedule -- Economic Integration and the Costs of a Fixed Exchange Rate Area: The LL Schedule -- The Decision to Join a Currency Area: Putting the GG and LL Schedules Together -- What Is an Optimum Currency Area? -- Case Study: Is Europe an Optimum Currency Area? -- The Future of EMU -- Box: The Euro Zone Debt Crisis of 2010 -- Summary -- 21.Financial Globalization: Opportunity and Crisis -- The International Capital Market and the Gains from Trade -- Three Types of Gain from Trade -- Risk Aversion -- Portfolio Diversification as a Motive for International Asset Trade -- The Menu of International Assets: Debt versus Equity -- International Banking and the International Capital Market -- |
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Contents note continued: The Model with an Import Quota -- Comparing a Tariff and a Quota -- 10.The Political Economy of Trade Policy -- The Case for Free Trade -- Free Trade and Efficiency -- Additional Gains from Free Trade -- Rent-Seeking -- Political Argument for Free Trade -- Case Study: The Gains from 1992 -- National Welfare Arguments Against Free Trade -- The Terms of Trade Argument for a Tariff -- The Domestic Market Failure Argument Against Free Trade -- How Convincing Is the Market Failure Argument? -- Income Distribution and Trade Policy -- Electoral Competition -- Collective Action -- Box: Politicians for Sale: Evidence from the 1990s -- Modeling the Political Process -- Who Gets Protected? -- International Negotiations and Trade Policy -- The Advantages of Negotiation -- International Trade Agreements: A Brief History -- The Uruguay Round -- Trade Liberalization -- Administrative Reforms: From the GATT to the WTO -- Benefits and Costs -- |
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Contents note continued: The Political Economy of Trade: A Preliminary View -- Case Study: Trade and Unemployment -- Income Distribution and Trade Politics -- International Labor Mobility -- Case Study: Wage Convergence in the Age of Mass Migration -- Case Study: Foreign Workers: The Story of the GCC -- Summary -- Appendix: Further Details on Specific Factors -- Marginal and Total Product -- Relative Prices and the Distribution of Income -- 5.Resources and Trade: The Heckscher-Ohlin Model -- A Model of a Two-Factor Economy -- Prices and Production -- Choosing the Mix of Inputs -- Factor Prices and Goods Prices -- Resources and Output -- Effects of International Trade Between Two-Factor Economies -- Relative Prices and the Pattern of Trade -- Trade and the Distribution of Income -- Case Study: North-South Trade and Income Inequality -- Factor-Price Equalization -- Empirical Evidence on the Heckscher-Ohlin Model -- Trade in Goods as a Substitute for Trade in Factors -- |
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Contents note continued: The Structure of the International Capital Market -- Offshore Banking and Offshore Currency Trading -- The Growth of Eurocurrency Trading -- The Importance of Regulatory Asymmetries -- The Shadow Banking System -- Regulating International Banking -- The Problem of Bank Failure -- Case Study: Moral Hazard -- Difficulties in Regulating International Banking -- Box: The Simple Algebra of Moral Hazard -- International Regulatory Cooperation -- Case Study: Two Episodes of Market Turmoil: LTCM and the Global Financial Crisis of 2007-2009 -- Box: Foreign Exchange Instability and Central Bank Swap Lines -- How Well Have International Financial Markets Allocated Capital and Risk? -- The Extent of International Portfolio Diversification -- The Extent of Intertemporal Trade -- Onshore-Offshore Interest Differentials -- The Efficiency of the Foreign Exchange Market -- Summary -- Developing Countries: Growth, Crisis, and Reform -- |
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Machine generated contents note: 1.Introduction -- What Is International Economics About? -- The Gains from Trade -- The Pattern of Trade -- How Much Trade? -- Balance of Payments -- Exchange Rate Determination -- International Policy Coordination -- The International Capital Market -- International Economics: Trade and Money -- pt. 1 International Trade Theory -- 2.World Trade: An Overview -- Who Trades with Whom? -- Size Matters: The Gravity Model -- Using the Gravity Model: Looking for Anomalies -- Impediments to Trade: Distance, Barriers, and Borders -- The Changing Pattern of World Trade -- Has the World Gotten Smaller? -- What Do We Trade? -- Service Outsourcing -- Do Old Rules Still Apply? -- Summary -- 3.Labor Productivity and Comparative Advantage: The Ricardian Model -- The Concept of Comparative Advantage -- A One-Factor Economy -- Production Possibilities -- Relative Prices and Supply -- Trade in a One-Factor World -- Determining the Relative Price After Trade -- |
| Notes |
Previous edition: 2009 |
| Bibliography |
Includes bibliographical references and index |
| Notes |
Donated by Ong Khen Peg |
| Subject |
International economic relations.
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International finance.
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| Author |
Melitz, Marc J., author
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Obstfeld, Maurice, author
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| ISBN |
0273754092 (paperback) |
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0273754203 |
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9780273754091 (paperback) |
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9780273754206 |
