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| Introduction to the World Economy | |
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| Why Study International Economics? | |
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| What Do We Mean by International Interdependence? | |
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| The Economic Significance of Political Boundaries | |
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| Studying International Economics | |
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| International Microeconomics | |
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| Comparative Advantage I: Labor Productivity and Trade | |
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| Introduction | |
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| Early Thinking about Trade: The Mercantilists | |
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| The Decline of Mercantilism (and the Birth of Economics) | |
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| Keeping Things Simple: Some Assumptions | |
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| The Ricardian World without Trade | |
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| The Ricardian World with Trade | |
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| The Gains from Trade: Exchange and Specialization | |
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| Using Demand and Supply to Analyze Trade | |
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| Can the Ricardian Model Really Explain Trade? | |
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| Does Labor Productivity Really Vary? | |
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| Which Plants Export? | |
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| What Can the World Produce? The World Production Possibilities Frontier | |
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| Comparative Advantage II: Factor Endowments and Trade | |
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| Introduction | |
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| The Neoclassical World without Trade | |
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| The Neoclassical World with Trade | |
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| Sources of Comparative Advantage | |
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| Lights-Out Factories | |
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| From Fish to Information Technology | |
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| Socks: Made in USA | |
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| Can Heckscher-Ohlin Explain China's Trade? | |
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| The Edgeworth Box | |
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| Offer Curves | |
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| Trade, Distribution, and Welfare | |
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| Introduction | |
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| How Do Output Prices Affect Factor Prices? The Stolper-Samuelson Theorem | |
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| How Do Factor Prices Vary Across Countries? The Factor Price Equalization Theorem | |
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| What if Factors Are Immobile in the Short Run? The Specific-Factors Model | |
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| Trade and Welfare: Gainers, Losers, and Compensation | |
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| Trade and Wages I: Asia | |
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| Trade and Wages II: The United States | |
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| Deja Vu: Learning from the History of the World Economy | |
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| A Rare Opportunity: Learning from Japanese Economic History | |
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| Beyond Comparative Advantage: Empirical Evidence and New Trade Theories | |
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| Introduction | |
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| Questions to Be Answered | |
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| How Do We Know if a Theory about Trade Is Correct? | |
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| Testing the Heckscher-Ohlin Model | |
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| Intra-Industry Trade | |
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| Trade with Economies of Scale | |
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| Technology-Based Theories of Trade: The Product Cycle | |
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| Overlapping Demands as a Basis for Trade | |
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| Transport Costs as a Determinant of Trade | |
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| Location of Industry | |
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| Trade and Sir Isaac Newton's Apples | |
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| Are there Economies of Scale? | |
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| Around the World in 22 Days | |
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| Tariffs | |
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| Introduction | |
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| Why Would a Country Impose a Tariff? | |
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| Types of Tariffs and Ways to Measure Them | |
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| What Happens When a Small Country Imposes an Import Tariff? | |
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| What Happens When a Large Country Imposes an Import Tariff? | |
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| How Does a Tariff Affect Factor Prices? Specific Factors and Stolper-Samuelson | |
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| Tariffs and Economies of Scale | |
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| The Effective Rate of Protection | |
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| Offshore Assembly Provisions | |
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| Taxing Exports | |
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| Making Cheap Medicine Expensive | |
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| Binding Policy Makers' Hands | |
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| China, Tariffs, and the WTO | |
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| Offer Curves and Tariffs | |
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| General-Equilibrium Tariff Effects in a Small Country | |
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| Nontariff Barriers | |
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| Introduction | |
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| Quotas | |
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| Comparison of Import Tariffs and Quotas | |
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| Export Quotas | |
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| Subsidies and Countervailing Duties | |
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| Dumping | |
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| Administrative and Technical Standards | |
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| How Can We Measure Nontariff Barriers? | |
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| Shooting Down the Byrd Amendment | |
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| Cotton Pits Farmer versus Farmer | |
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| Arguments for Restricting Trade | |
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| Introduction | |
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| Categories of Arguments for Trade Restrictions | |
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| What about "Infant" Industries? | |
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| What If Markets Aren't Competitive? | |
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| What If There Are Externalities? | |
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| Shouldn't the "Playing Field" Be Level? | |
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| How Can We Compete with Low-Wage Countries? | |
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| How Do We Handle National Security and Defense? | |
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| Aren't Goods and Money Better than Just Goods? | |
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| Can We Threaten Other Countries into Trade Liberalization? | |
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| Sticky Business in Singapore | |
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| No, the Other Type of Dumping | |
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| Spawning a Trade Dispute | |
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| MITI Miracles? | |
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| Science, or Politics? | |
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| The Political Economy of Trade Policy and Borders | |
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| Introduction | |
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| The Political Economy of National Trade Policy | |
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| How Did We Get Here? A Brief History of International Trade Policy | |
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| Economic Integration and Regional Trading | |
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| Interregional Trade | |
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| NAFTA Traffic Jams | |
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| I.D. Cards for Avocados | |
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| All in the Family | |
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| Is Japan Being Left Out? | |
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| Growth, Immigration, and Multinationals | |
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| Introduction | |
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| Economic Growth I: More Inputs | |
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| Economic Growth II: More Productivity | |
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| What if Factors Can Move? | |
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| Growth Myths and Miracles | |
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| How Big Are They? | |
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| Saving, Investment, and Intertemporal Trade | |
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| Send Money | |
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| Development, Transition, and Trade | |
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| Introduction | |
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| Defining Development | |
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| Development Issues | |
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| Agriculture, Industry, or Both? | |
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| North-South Issues | |
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| Developing Markets: Economies in Transition | |
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| Does Aid Aid Growth? | |
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| Does Policy Matter? The Two Koreas | |
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| Open to Development | |
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| Reproducing Pharmaceuticals | |
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| Oil Junkies? | |
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| WTO Member or Market Economy? | |
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| International Macroeconomics | |
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| Currency Markets and Exchange Rates | |
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| Introduction | |
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| Exchange Rates and Prices | |
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| Foreign Exchange Markets | |
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| Interest Parity | |
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| Demand and Supply in the Foreign Exchange Market | |
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| How Are Exchange Rates Determined under a Flexible-Rate Regime? | |
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| How Are Exchange Rates Determined under a Fixed-Rate Regime? | |
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| The Effective Exchange Rate | |
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| Offshore Currency Markets | |
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| Multinationals and Foreign Exchange | |
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| Picking Stocks Means Picking Currencies | |
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| Herstatt Risk | |
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| Foreign Exchange Market Update | |
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| The Balance-of-Payments Accounts | |
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| Introduction | |
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| What's in the Balance-of-Payments Accounts? | |
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| What Are Balance-of-Payments Surpluses and Deficits? | |
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| What's the Connection? The Balance of Payments and the Foreign Exchange Market | |
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| The U.S.-China Trade Deficit: $10 Billion or $40 Billion? | |
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| The United States as a Debtor | |
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| Rest of Galaxy Enjoys Current-Account Surplus | |
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| World Merchandise Trade | |
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| The Market for Goods and Services in an Open Economy | |
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| Introduction | |
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| How Do We Measure a Country's Output? | |
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| What Determines Output and Income in an Open Economy? | |
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| How Does International Trade Affect the Market for Goods and Services? | |
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| What Causes Changes in the Market for Goods and Services? | |
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| Interdependence: Protectionism, Income, and the Current Account | |
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| The "Twin Deficits" | |
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| A Concise Graphical Summary: The IS Curve | |
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| Components of GDP | |
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| The Peso and Mexico-U.S. Trade | |
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| The Macroeconomics of German Unification | |
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| Money, the Banking System, and Foreign Exchange | |
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| Introduction | |
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| Money in the World Economy | |
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| Banking Crises | |
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| Foreign Exchange | |
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| Bringing It All Together | |
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| How a Flexible Exchange Rate Regime Works | |
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| How a Fixed Exchange Rate Regime Works | |
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| Trying to Get the Best of Both Worlds | |
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| Where the Foreign Exchange Reserves Are | |
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| Birth of a Currency | |
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| Banking on Unification | |
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| Short-Run Macroeconomic Policy under Fixed Exchange Rates | |
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| Introduction | |
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| Macroeconomic Goals in an Open Economy | |
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| Macroeconomic Policy with Immobile Capital | |
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| Macroeconomic Policy with Perfectly Mobile Capital | |
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| Macroeconomic Policy with Imperfectly Mobile Capital | |
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| A Special Case: The Reserve-Currency Country | |
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| More on German Unification | |
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| Betting Against the Baht | |
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| Pesos and Tequila | |
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| The Two Faces of Capital Flows | |
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| Paying the Bills | |
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| Pegged, But to What? | |
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| Capital Decontrols | |
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| Short-Run Macroeconomic Policy under Flexible Exchange Rates | |
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| Introduction | |
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| Macroeconomic Policy with Immobile Capital | |
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| Macroeconomic Policy with Perfectly Mobile Capital | |
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| Macroeconomic Policy with Imperfectly Mobile Capital | |
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| The Policy Mix | |
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| Summary of Short-Run Policy Effectiveness Under a Flexible Exchange Rate | |
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| The Japan Slump | |
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| Policy Squeezes: To Do, or Not to Do? | |
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| Floating the Pound | |
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| The Budget and the Dollar | |
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| The Truth about Exchange Rate Regimes | |
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| The Exchange Rate in Long-Run Equilibrium | |
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| Introduction | |
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| Money in Long-Run Equilibrium | |
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| Purchasing Power Parity | |
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| The Monetary Approach to the Exchange Rate | |
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| The Real Exchange Rate | |
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| Long-Run Equilibrium Exchange Rates | |
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| More on Why Interest Rates Differ | |
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| Tank-Touristen | |
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| Purchasing Power Parity at Home? | |
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| Nontraded Goods and the Real Exchange Rate | |
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| Dry Cleaning in Oslo and Karachi | |
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| Prices and Output in an Open Economy | |
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| Introduction | |
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| Apples versus GDP: Supply in Micro- and Macroeconomics | |
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| Aggregate Demand under Fixed Exchange Rates | |
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| Long-Run Aggregate Supply | |
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| Medium-Run Aggregate Supply | |
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| Combining Aggregate Demand and Aggregate Supply | |
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| Macroeconomic Policy under Fixed Exchange Rates | |
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| Aggregate Demand under Flexible Exchange Rates | |
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| Macroeconomic Policies under Flexible Exchange Rates | |
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| Supply Shocks | |
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| Unemployment-Structural and Cyclical | |
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| The Ups and Downs of Business Cycles | |
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| The Aggregate Demand Curve | |
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| International Monetary Regimes | |
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| Introduction | |
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| What Does a Monetary Regime Need to Do? | |
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| The Gold Standard, 1880-1913: Panacea or Rose-Colored Glasses? | |
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| The Interwar Years, 1919-1939: Search for an International Monetary System | |
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| Bretton Woods, 1945-1971: A Negotiated International Monetary System | |
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| Post-Bretton Woods, 1973-: Another Search for an International Monetary System | |
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| The Fixed-versus-Flexible Debate | |
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| Money in the European Union: From EMS to EMU | |
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| Mapping the Euro Zone | |
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| Do Floating Rates Really Float? | |
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| When Is a Central Bank Not a Central Bank? | |
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| Is Growth Fixed or Flexible? | |
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| Su Currency Es Mi Currency | |
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| Macroeconomics of Development and Transition | |
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| Introduction | |
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| Development and the Macroeconomy | |
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| Transition and the Macroeconomy | |
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| The HIPC Initiative | |
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| Monetary-Policy Transition in China | |
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| Ownership Matters | |
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| Country or Economy Index | |
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| Subject Index | |