دانلود کتاب International Economics

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Cover
Title Page
Copyright
Preface
Brief Contents
Contents
Case Studies
Chapter 1 Introduction
1.1 The Globalization of the World Economy
1.1A We Live in a Global Economy
Case Study 1-1 The Dell PCs, iPhones, and iPads Sold in the United States are Anything but American!
1.1B The Globalization Challenge
Case Study 1-2 What Is an “American” Car?
1.2 International Trade and the Nation’s Standard of Living
Case Study 1-3 Is India’s Globalization Harming the United States?
Case Study 1-4 Rising Importance of International Trade to the United States
1.3 The International Flow of Goods, Services, Labor, and Capital
1.3A The International Flow of Goods and Services: The Gravity Model
Case Study 1-5 The Gravity Model at Work
1.3B The International Flow of Labor and Capital
Case Study 1-6 Major Net Exporters and Importers of Capital
1.3C Globalization Before and After the Global Financial Crisis
1.4 International Economic Theories and Policies
1.4A Purpose of International Economic Theories and Policies
1.4B The Subject Matter of International Economics
1.5 Current International Economic Problems and Challenges
1.6 Organization and Methodology of the Text
1.6A Organization of the Text
1.6B Methodology of the Text
Summary
Key Terms
Questions for Review
Problems
Appendix
A1.1 Basic International Trade Data
A1.2 Sources of Additional International Data and Information
Part 1 International Trade Theory
Chapter 2 The Law of Comparative Advantage
2.1 Introduction
2.2 The Mercantilists’ Views on Trade
Case Study 2-1 Munn’s Mercantilistic Views on Trade
Case Study 2-2 Mercantilism Is Alive and Well in the Twenty-First Century
2.3 Trade Based on Absolute Advantage: Adam Smith
2.3A Absolute Advantage
2.3B Illustration of Absolute Advantage
2.4 Trade Based on Comparative Advantage: David Ricardo
2.4A The Law of Comparative Advantage
2.4B The Gains from Trade
2.4C The Case of No Comparative Advantage
2.4D Comparative Advantage with Money
Case Study 2-3 The Petition of the Candlemakers
2.5 Comparative Advantage and Opportunity Costs
2.5A Comparative Advantage and the Labor Theory of Value
2.5B The Opportunity Cost Theory
2.5C The Production Possibility Frontier Under Constant Costs
2.5D Opportunity Costs and Relative Commodity Prices
2.6 The Basis for and the Gains from Trade under Constant Costs
2.6A Illustration of the Gains from Trade
2.6B Relative Commodity Prices with Trade
2.7 Empirical Tests of the Ricardian Model
Case Study 2-4 Other Empirical Tests of the Ricardian Model
Summary
Key Terms
Questions for Review
Problems
Appendix
A2.1 Comparative Advantage with More Than Two Commodities
A2.2 Comparative Advantage with More Than Two Nations
Chapter 3 The Standard Theory of International Trade
3.1 Introduction
3.2 The Production Frontier with Increasing Costs
3.2A Illustration of Increasing Costs
3.2B The Marginal Rate of Transformation
3.2C Reasons for Increasing Opportunity Costs and Different Production Frontiers
3.3 Community Indifference Curves
3.3A Illustration of Community Indifference Curves
3.3B The Marginal Rate of Substitution
3.3C Some Difficulties with Community Indifference Curves
3.4 Equilibrium in Isolation
3.4A Illustration of Equilibrium in Isolation
3.4B Equilibrium-Relative Commodity Prices and Comparative Advantage
Case Study 3-1 The Comparative Advantage of the Largest Advanced and Emerging Economies
3.5 The Basis for and the Gains from Trade with Increasing Costs
3.5A Illustrations of the Basis for and the Gains from Trade with Increasing Costs
3.5B Equilibrium-Relative Commodity Prices with Trade
3.5C Incomplete Specialization
3.5D Small-Country Case with Increasing Costs
Case Study 3-2 Specialization and Export Concentration in Selected Countries
3.5E The Gains from Exchange and from Specialization
Case Study 3-3 Job Losses in High U.S. Import-Competing Industries
Case Study 3-4 International Trade and Deindustrialization in the United States, the European Union, and Japan
3.6 Trade Based on Differences in Tastes
3.6A Illustration of Trade Based on Differences in Tastes
Summary
Key Terms
Questions for Review
Problems
Appendix
A3.1 Production Functions, Isoquants, Isocosts, and Equilibrium
A3.2 Production Theory with Two Nations, Two Commodities, and Two Factors
A3.3 Derivation of the Edgeworth Box Diagram and Production Frontiers
A3.4 Some Important Conclusions
Chapter 4 Demand and Supply, Offer Curves, and the Terms of Trade
4.1 Introduction
4.2 The Equilibrium-Relative Commodity Price with Trade—Partial Equilibrium Analysis
Case Study 4-1 Demand, Supply, and the International Price of Petroleum
Case Study 4-2 The Index of Export to Import Prices for the United States
4.3 Offer Curves
4.3A Origin and Definition of Offer Curves
4.3B Derivation and Shape of the Offer Curve of Nation 1
4.3C Derivation and Shape of the Offer Curve of Nation 2
4.4 The Equilibrium-Relative Commodity Price with Trade—General Equilibrium Analysis
4.5 Relationship Between General and Partial Equilibrium Analyses
4.6 The Terms of Trade
4.6A Definition and Measurement of the Terms of Trade
4.6B Illustration of the Terms of Trade
Case Study 4-3 The Terms of Trade of the G-7 Countries
Case Study 4-4 The Terms of Trade of Advanced and Developing Countries
4.6C Usefulness of the Model
Summary
Key Terms
Questions for Review
Problems
Appendix
A4.1 Derivation of a Trade Indifference Curve for Nation 1
A4.2 Derivation of Nation 1’s Trade Indifference Map
A4.3 Formal Derivation of Nation 1’s Offer Curve
A4.4 Outline of the Formal Derivation of Nation 2’s Offer Curve
A4.5 General Equilibrium of Production, Consumption, and Trade
A4.6 Multiple and Unstable Equilibria
Chapter 5 Factor Endowments and the Heckscher–Ohlin Theory
5.1 Introduction
5.2 Assumptions of the Theory
5.2A The Assumptions
5.2B Meaning of the Assumptions
5.3 Factor Intensity, Factor Abundance, and the Shape of the Production Frontier
5.3A Factor Intensity
5.3B Factor Abundance
5.3C Factor Abundance and the Shape of the Production Frontier
Case Study 5-1 Relative Resource Endowment of Various Countries
Case Study 5-2 Capital–Labor Ratios of Selected Countries
5.4 Factor Endowments and the Heckscher–Ohlin Theory
5.4A The Heckscher—Ohlin Theorem
5.4B General Equilibrium Framework of the Heckscher–Ohlin Theory
5.4C Illustration of the Heckscher—Ohlin Theory
Case Study 5-3 Classification of Major Product Categories in Terms of Factor Intensity
Case Study 5-4 The Factor Intensity of Trade of Various Countries
5.5 Factor–Price Equalization and Income Distribution
5.5A The Factor–Price Equalization Theorem
5.5B Relative and Absolute Factor–Price Equalization
5.5C Effect of Trade on the Distribution of Income
Case Study 5-5 Has International Trade Increased U.S. Wage Inequalities?
5.5D The Specific-Factors Model
5.5E Empirical Relevance
Case Study 5-6 Convergence of Real Wages among Leading Advanced Countries
5.6 Empirical Tests of the Heckscher–Ohlin Model
5.6A Empirical Results—The Leontief Paradox
Case Study 5-7 Capital and Labor Requirements in U.S. Trade
5.6B Explanations of the Leontief Paradox and Other Empirical Tests of the H–O Model
Case Study 5-8 The H–O Model with Skills and Land
5.6C Factor–Intensity Reversal
Summary
Key Terms
Questions for Review
Problems
Appendix
A5.1 The Edgeworth Box Diagram for Nation 1 and Nation 2
A5.2 Relative Factor–Price Equalization
A5.3 Absolute Factor–Price Equalization
A5.4 Effect of Trade on the Short-Run Distribution of Income: The Specific-Factors Model
A5.5 Illustration of Factor–Intensity Reversal
A5.6 The Elasticity of Substitution and Factor–Intensity Reversal
A5.7 Empirical Tests of Factor–Intensity Reversal
Chapter 6 Economies of Scale, Imperfect Competition, and International Trade
6.1 Introduction
6.2 The Heckscher–Ohlin Model and New Trade Theories
6.3 Economies of Scale and International Trade
Case Study 6-1 The New International Economies of Scale
Case Study 6-2 Job Loss Rates in U.S. Industries and Globalization
6.4 Imperfect Competition and International Trade
6.4A Trade Based on Product Differentiation
Case Study 6-3 U.S. Intra-Industry Trade in Automotive Products
Case Study 6-4 Variety Gains with International Trade
6.4B Relationship Between Intra-Industry and H–O Trade Models
6.4C Measuring Intra-Industry Trade
Case Study 6-5 Growth of Intra-Industry Trade
Case Study 6-6 Intra-Industry Trade Indexes for G-20 Countries
Case Study 6-7 Index of Intra-Industry Trade of Some U.S. Industries, 2017
6.4D Formal Model of Intra-Industry Trade
6.4E Another Version of the Intra-Industry Trade Model
6.5 Trade Based on Dynamic Technological Differences
6.5A Technological Gap and Product Cycle Models
6.5B Illustration of the Product Cycle Model
Case Study 6-8 The United States as the Most Competitive Economy
6.6 Costs of Transportation, Environmental Standards, and International Trade
6.6A Costs of Transportation and Nontraded Commodities
6.6B Costs of Transportation and the Location of Industry
6.6C Environmental Standards, Industry Location, and International Trade
Case Study 6-9 Environmental Performance Index
Summary
Key Terms
Questions for Review
Problems
Appendix
A6.1 External Economies and the Pattern of Trade
A6.2 Dynamic External Economies and Specialization
Chapter 7 Economic Growth and International Trade
7.1 Introduction
7.2 Growth of Factors of Production
7.2A Labor Growth and Capital Accumulation over Time
7.2B The Rybczynski Theorem
7.3 Technical Progress
7.3A Neutral, Labor-Saving, and Capital-Saving Technical Progress
7.3B Technical Progress and the Nation’s Production Frontier
Case Study 7-1 Growth in the Capital Stock per Worker of Selected Countries
7.4 Growth and Trade: The Small-Country Case
7.4A The Effect of Growth on Trade
7.4B Illustration of Factor Growth, Trade, and Welfare
7.4C Technical Progress, Trade, and Welfare
Case Study 7-2 Growth in Output per Worker from Capital Deepening, Technological Change, and Improvements in Efficiency
7.5 Growth and Trade: The Large-Country Case
7.5A Growth and the Nation’s Terms of Trade and Welfare
7.5B Immiserizing Growth
7.5C Illustration of Beneficial Growth and Trade
Case Study 7-3 Growth and the Emergence of New Economic Giants
7.6 Growth, Change in Tastes, and Trade in Both Nations
7.6A Growth and Trade in Both Nations
7.6B Change in Tastes and Trade in Both Nations
Case Study 7-4 Growth, Trade, and Welfare in the Leading Industrial Countries
Summary
Key Terms
Questions for Review
Problems
Appendix
A7.1 Formal Proof of the Rybczynski Theorem
A7.2 Growth with Factor Immobility
A7.3 Graphical Analysis of Hicksian Technical Progress
Part 2 International Trade Policy
Chapter 8 Trade Restrictions: Tariffs
8.1 Introduction
Case Study 8-1 Average Tariff on Nonagricultural Products in Major Developed Countries
Case Study 8-2 Average Tariffs on Nonagricultural Products in Some Major Developing Countries
8.2 Partial Equilibrium Analysis of a Tariff
8.2A Partial Equilibrium Effects of a Tariff
8.2B Effect of a Tariff on Consumer and Producer Surplus
8.2C Costs and Benefits of a Tariff
Case Study 8-3 The Welfare Effect of Liberalizing Trade on Some U.S. Products
Case Study 8-4 The Welfare Effect of Liberalizing Trade on Some EU Products
8.3 The Theory of Tariff Structure
8.3A The Rate of Effective Protection
8.3B Generalization and Evaluation of the Theory of Effective Protection
Case Study 8-5 Structure of Tariffs on Industrial Products in the United States, the European Union, Japan, and Canada
Case Study 8-6 Tariff Escalation for Various Developing-Country Regions and Sectors
8.4 General Equilibrium Analysis of a Tariff in a Small Country
8.4A General Equilibrium Effects of a Tariff in a Small Country
8.4B Illustration of the Effects of a Tariff in a Small Country
8.4C The Stolper–Samuelson Theorem
8.5 General Equilibrium Analysis of a Tariff in a Large Country
8.5A General Equilibrium Effects of a Tariff in a Large Country
8.5B Illustration of the Effects of a Tariff in a Large Country
8.6 The Optimum Tariff
8.6A The Meaning of the Concept of Optimum Tariff and Retaliation
8.6B Illustration of the Optimum Tariff and Retaliation
Summary
Key Terms
Questions for Review
Problems
Appendix
A8.1 Partial Equilibrium Effects of a Tariff in a Large Nation
A8.2 Derivation of the Formula for the Rate of Effective Protection
A8.3 The Stolper–Samuelson Theorem Graphically
A8.4 Exception to the Stolper–Samuelson Theorem—The Metzler Paradox
A8.5 Short-Run Effect of a Tariff on Factors’ Income
A8.6 Measurement of the Optimum Tariff
Chapter 9 Nontariff Trade Barriers and the New Protectionism
9.1 Introduction
9.2 Import Quotas
9.2A Effects of an Import Quota
Case Study 9-1 The Economic Effects of the U.S. Quota on Sugar Imports
9.2B Comparison of an Import Quota to an Import Tariff
9.3 Other Nontariff Barriers and the New Protectionism
9.3A Voluntary Export Restraints
Case Study 9-2 Voluntary Export Restraints (VERs) on Japanese Automobiles to the United States and Europe
9.3B Technical, Administrative, and Other Regulations
9.3C International Cartels
9.3D Dumping
Case Study 9-3 Number of Antidumping Measures Imposed by G20 Members
9.3E Export Subsidies
Case Study 9-4 Agricultural Subsidies in OECD Countries
Case Study 9-5 Pervasiveness of Nontariff Barriers
9.3F Analysis of Export Subsidies
9.4 The Political Economy of Protectionism
9.4A Fallacious and Questionable Arguments for Protection
9.4B The Infant-Industry and Other Qualified Arguments for Protection
9.4C Who Gets Protected?
Case Study 9-6 Benefits to the World Economy from Complete Trade Liberalization
9.5 Strategic Trade and Industrial Policies
9.5A Strategic Trade Policy
9.5B Strategic Trade and Industrial Policies with Game Theory
9.5C The U.S. Response to Foreign Industrial Targeting and Strategic Trade Policies
Case Study 9-7 Trump Almost Started a Trade War in 2018
9.6 History of U.S. Commercial Policy
9.6A The Trade Agreements Act of 1934
9.6B The General Agreement on Tariffs and Trade (GATT)
9.6C The 1962 Trade Expansion Act and the Kennedy Round
9.6D The Trade Reform Act of 1974 and the Tokyo Round
9.6E The 1984 and 1988 Trade Acts
9.7 The Uruguay Round, the Failed Doha Round, and the Outstanding Trade Problems
9.7A The Uruguay Round
Case Study 9-8 Gains from the Uruguay Round
9.7B The Failed Doha Round
Case Study 9-9 The Multilateral Rounds of Trade Negotiations
9.7C Outstanding Trade Problems
Summary
Key Terms
Questions for Review
Problems
Appendix
A9.1 Centralized Cartels
A9.2 International Price Discrimination
A9.3 Tariffs, Subsidies, and Domestic Goals
Chapter 10 Economic Integration: Customs Unions and Free Trade Areas
10.1 Introduction
10.2 Trade-Creating Customs Union
10.2A Trade Creation
10.2B Illustration of a Trade-Creating Customs Union
10.3 Trade-Diverting Customs Unions
10.3A Trade Diversion
10.3B Illustration of a Trade-Diverting Customs Union
10.4 The Theory of the Second Best and Other Static Welfare Effects of Customs Unions
10.4A The Theory of the Second Best
10.4B Conditions More Likely to Lead to Increased Welfare
10.4C Other Static Welfare Effects of Customs Unions
10.5 Dynamic Benefits from Customs Unions
10.6 History of Attempts at Economic Integration
10.6A The European Union
Case Study 10-1 Economic Profile of the EU, NAFTA, and Japan
Case Study 10-2 Gains from the Single EU Market
10.6B The European Free Trade Association
10.6C The North American and Other Free Trade Agreements
Case Study 10-3 Mexico’s Gains from NAFTA—Expectations and Outcome
10.6D Attempts at Integration Among Developing Countries
Case Study 10-4 Economic Profile of Mercosur
Case Study 10-5 Changes in Trade Patterns with Economic Integration
10.6E Economic Integration in Central and Eastern Europe and in the Former Soviet Republics
Summary
Key Terms
Questions for Review
Problems
Appendix
A10.1 General Equilibrium Analysis of the Static Effects of a Trade-Diverting Customs Union
A10.2 Regional Trade Agreements and Other Groups Around the World in June 2018
Chapter 11 International Trade and Economic Development
11.1 Introduction
11.2 The Importance of Trade to Development
11.2A Trade Theory and Economic Development
11.2B Trade as an Engine of Growth
11.2C The Contributions of Trade to Development
11.2D International Trade and Endogenous Growth Theory
Case Study 11-1 The East Asian Miracle of Growth and Trade
11.3 The Terms of Trade and Economic Development
11.3A The Various Terms of Trade
11.3B Alleged Reasons for Deterioration in the Commodity Terms of Trade
11.3C Historical Movement in the Commodity and Income Terms of Trade
Case Study 11-2 Change in Commodity Prices Over Time
11.4 Export Instability and Economic Development
11.4A Cause and Effects of Export Instability
11.4B Measurements of Export Instability and Its Effect on Development
11.4C International Commodity Agreements
11.5 Import Substitution versus Export Orientation
11.5A Development Through Import Substitution versus Exports
11.5B Experience with Import Substitution
Case Study 11-3 The Growth of GDP of Rich Countries, Globalizers, and Nonglobalizers
11.5C Trade Liberalization and Growth in Developing Countries
Case Study 11-4 Manufactures in Total Exports of Selected Developing Countries
11.6 Current Problems Facing Developing Countries
11.6A Poverty in Developing Countries
11.6B The Foreign Debt Problem of Developing Countries
Case Study 11-5 The Foreign Debt Burden of Developing Countries
11.6C Trade Problems of Developing Countries
Case Study 11-6 Globalization and World Poverty
Summary
Key Terms
Questions for Review
Problems
Appendix
A11.1 Income Inequalities by Traditional and Purchasing-Power Parity (PPP) Measures
A11.2 The World by Income
Chapter 12 International Resource Movements and Multinational Corporations
12.1 Introduction
12.2 Some Data on International Capital Flows
Case Study 12-1 Fluctuations in Foreign Direct Investment Flows to the United States
12.3 Motives for International Capital Flows
12.3A Motives for International Portfolio Investments
12.3B Motives for Direct Foreign Investments
Case Study 12-2 The Stock of Foreign Direct Investments Around the World
12.4 Welfare Effects of International Capital Flows
12.4A Effects on the Investing and Host Countries
12.4B Other Effects on the Investing and Host Countries
12.5 Multinational Corporations
12.5A Reasons for the Existence of Multinational Corporations
12.5B Problems Created by Multinational Corporations in the Home Country
Case Study 12-3 The World’s Largest Industrial Corporations
Case Study 12-4 Employment of U.S. MNCs Abroad
12.5C Problems Created by Multinational Corporations in the Host Country
12.6 Motives for and Welfare Effects of International Labor Migration
12.6A Motives for International Labor Migration
12.6B Welfare Effects of International Labor Migration
12.6C Other Welfare Effects of International Labor Migration
Case Study 12-5 U.S. Immigration and Debate Over Immigration Policy
Summary
Key Terms
Questions for Review
Problems
Appendix
A12.1 The Transfer Problem
A12.2 International Trade, Financial and Aid Flows, and Migration
Part 3 The Balance of Payments, Foreign Exchange Markets, and Exchange Rates
Chapter 13 Balance of Payments
13.1 Introduction
13.2 Balance of Payments Accounting
13.2A Current Account and Capital Account
13.2B Financial Account
13.2C International Transactions with Double-Entry Bookkeeping
13.3 The International Transactions of the United States
Case Study 13-1 The Major Goods Exports and Imports of the United States
13.4 Accounting Balances and the U.S. Balance of Payments
13.5 The Postwar Balance of Payments of the United States
Case Study 13-2 The Exploding U.S. Trade Deficit with China
Case Study 13-3 The Major Trade Partners of the United States
13.6 The Importance of the Current Account
13.7 The International Investment Position of the United States
Case Study 13-4 The United States as a Debtor Nation
Summary
Key Terms
Questions for Review
Problems
Appendix
A13.1 The IMF Method of Reporting International Transactions
Chapter 14 Foreign Exchange Markets and Exchange Rates
14.1 Introduction
14.2 Functions of the Foreign Exchange Markets
Case Study 14-1 The U.S. Dollar as the Dominant International Currency
Case Study 14-2 The Birth of a New Currency: The Euro
14.3 Foreign Exchange Rates
14.3A Equilibrium Foreign Exchange Rates
Case Study 14-3 Foreign Exchange Quotations
14.3B Arbitrage
14.3C The Exchange Rate and the Balance of Payments
14.4 Spot and Forward Rates, Currency Swaps, Futures, and Options
14.4A Spot and Forward Rates
14.4B Foreign Exchange Swaps
14.4C Foreign Exchange Futures and Options
Case Study 14-4 Size, Currency, and Geographical Distribution of the Foreign Exchange Market
14.5 Foreign Exchange Risks, Hedging, and Speculation
14.5A Foreign Exchange Risks
14.5B Hedging
14.5C Speculation
14.6 Interest Arbitrage and the Efficiency of Foreign Exchange Markets
14.6A Uncovered Interest Arbitrage
Case Study 14-5 Carry Trade
14.6B Covered Interest Arbitrage
14.6C Covered Interest Arbitrage Parity
14.6D Covered Interest Arbitrage Margin
14.6E Efficiency of Foreign Exchange Markets
14.7 Eurocurrency or Offshore Financial Markets
14.7A Description and Size of the Eurocurrency Market
Case Study 14-6 Size and Growth of Eurocurrency Market
14.7B Reasons for the Development and Growth of the Eurocurrency Market
14.7C Operation and Effects of Eurocurrency Market
14.7D Eurobond and Euronote Markets
Summary
Key Terms
Questions for Review
Problems
Appendix
A14.1 Derivation of the Formula for the Covered Interest Arbitrage Margin
Chapter 15 Exchange Rate Determination
15.1 Introduction
15.2 Purchasing-Power Parity Theory
15.2A Absolute Purchasing-Power Parity Theory
Case Study 15-1 Absolute Purchasing-Power Parity in the Real World
Case Study 15-2 The Big Mac Index and the Law of One Price
15.2B Relative Purchasing-Power Parity Theory
15.2C Empirical Tests of the Purchasing-Power Parity Theory
Case Study 15-3 Relative Purchasing-Power Parity in the Real World
15.3 Monetary Approach to the Balance of Payments and Exchange Rates
15.3A Monetary Approach Under Fixed Exchange Rates
15.3B Monetary Approach Under Flexible Exchange Rates
15.3C Monetary Approach to Exchange Rate Determination
15.3D Expectations, Interest Differentials, and Exchange Rates
Case Study 15-4 Monetary Growth and Inflation
Case Study 15-5 Nominal and Real Exchange Rates, and the Monetary Approach
Case Study 15-6 Interest Differentials, Exchange Rates, and the Monetary Approach
15.4 Portfolio Balance Model and Exchange Rates
15.4A Portfolio Balance Model
15.4B Extended Portfolio Balance Model
15.4C Portfolio Adjustments and Exchange Rates
15.5 Exchange Rate Dynamics
15.5A Exchange Rate Overshooting
15.5B Time Path to a New Equilibrium Exchange Rate
Case Study 15-7 Exchange Rate Overshooting of the U.S. Dollar
15.6 Empirical Tests of the Monetary and Portfolio Balance Models and Exchange Rate Forecasting
Case Study 15-8 The Euro Exchange Rate Defies Forecasting
Summary
Key Terms
Questions for Review
Problems
Appendix
A15.1 Formal Monetary Approach Model
A15.2 Formal Portfolio Balance Model and Exchange Rates
Part 4 Open-Economy Macroeconomics and the International Monetary System
Chapter 16 The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates
16.1 Introduction
16.2 Adjustment with Flexible Exchange Rates
16.2A Balance-of-Payments Adjustments with Exchange Rate Changes
16.2B Derivation of the Demand Curve for Foreign Exchange
16.2C Derivation of the Supply Curve for Foreign Exchange
16.3 Effect of Exchange Rate Changes on Domestic Prices and the Terms of Trade
Case Study 16-1 Currency Depreciation and Inflation in Developing Countries During the 1997–1998 East Asian Crisis
16.4 Stability of Foreign Exchange Markets
16.4A Stable and Unstable Foreign Exchange Markets
16.4B The Marshall–Lerner Condition
16.5 Elasticities in the Real World
16.5A Elasticity Estimates
16.5B The J-Curve Effect and Revised Elasticity Estimates
Case Study 16-2 Estimated Price Elasticities in International Trade
Case Study 16-3 Other Estimated Price Elasticities in International Trade
Case Study 16-4 Effective Exchange Rate of the Dollar and U.S. Current Account Balance
Case Study 16-5 Dollar Depreciation and the U.S. Current Account Balance
Case Study 16-6 Exchange Rates and Current Account Balances during the European Financial Crisis of the Early 1990s
16.5C Currency Pass-Through
Case Study 16-7 Exchange Rate Pass-Through to Import Prices in Industrial Countries
16.6 Adjustment under the Gold Standard
16.6A The Gold Standard
16.6B The Price–Specie Flow Mechanism
Summary
Key Terms
Questions for Review
Problems
Appendix
A16.1 The Effect of Exchange Rate Changes on Domestic Prices
A16.2 Derivation of the Marshall–Lerner Condition
A16.3 Derivation of the Gold Points and Gold Flows Under the Gold Standard
Chapter 17 The Income Adjustment Mechanism and Synthesis of Automatic Adjustments
17.1 Introduction
17.2 Income Determination in a Closed Economy
17.2A Determination of the Equilibrium National Income in a Closed Economy
17.2B Multiplier in a Closed Economy
17.3 Income Determination in a Small Open Economy
17.3A Import Function
17.3B Determination of the Equilibrium National Income in a Small Open Economy
Case Study 17-1 Income Elasticity of Imports
17.3C Graphical Determination of the Equilibrium National Income
Case Study 17-2 Private Sector and Current Account Balances
17.3D Foreign Trade Multiplier
Case Study 17-3 Growth in the United States and the World, and U.S. Current Account Deficits
Case Study 17-4 Growth and Current Account Balance in the G7 Countries and the BRICS
17.4 Foreign Repercussions
Case Study 17-5 Effect of the Asian Financial Crisis of the Late 1990s on OECD Countries
17.5 Absorption Approach
17.6 Monetary Adjustments and Synthesis of the Automatic Adjustments
17.6A Monetary Adjustments
17.6B Synthesis of Automatic Adjustments
17.6C Disadvantages of Automatic Adjustments
Case Study 1 7-6 Interdependence in the World Economy
Summary
Key Terms
Questions for Review
Problems
Appendix
A17.1 Derivation of Foreign Trade Multipliers with Foreign Repercussions
A17.2 The Transfer Problem Once Again
Chapter 18 Open-Economy Macroeconomics: Adjustment Policies
18.1 Introduction
Case Study 18-1 Government, Private-Sector, and Current Account Balances in the G7 Countries
18.2 Internal and External Balance with Expenditure-Changing and Expenditure-Switching Policies
18.3 Equilibrium in the Goods Market, in the Money Market, and in the Balance of Payments
18.4 Fiscal and Monetary Policies for Internal and External Balance with Fixed Exchange Rates
18.4A Fiscal and Monetary Policies from External Balance and Unemployment
18.4B Fiscal and Monetary Policies from External Deficit and Unemployment
18.4C Fiscal and Monetary Policies with Elastic Capital Flows
Case Study 18-2 Relationship Between U.S. Current Account and Budget Deficits
18.4D Fiscal and Monetary Policies with Perfect Capital Mobility
Case Study 18-3 Effect of U.S. Fiscal Policy in the United States and Abroad
18.5 The IS–LM–BP Model with Flexible Exchange Rates
18.5A The IS–LM–BP Model with Flexible Exchange Rates and Imperfect Capital Mobility
18.5B The IS–LM–BP Model with Flexible Exchange Rates and Perfect Capital Mobility
Case Study 18-4 Effect of Monetary Policy in the United States and Other OECD Countries
18.6 Policy Mix and Price Changes
18.6A Policy Mix and Internal and External Balance
18.6B Evaluation of the Policy Mix with Price Changes
18.6C Policy Mix in the Real World
Case Study 18-5 U.S. Monetary and Fiscal Policies during the Past Decade
Case Study 18-6 Deeper U.S. Recession without Strong Fiscal and Monetary Measures
18.7 Direct Controls
18.7A Trade Controls
18.7B Exchange Controls
Case Study 18-7 Direct Controls on International Transactions Around the World
18.7C Other Direct Controls and International Cooperation
Summary
Key Terms
Questions for Review
Problems
Appendix
A18.1 Derivation of the IS Curve
A18.2 Derivation of the LM Curve
A18.3 Derivation of the BP Curve
A18.4 Mathematical Summary
Chapter 19 Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply
19.1 Introduction
19.2 Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed Economy
19.2A Aggregate Demand in a Closed Economy
19.2B Aggregate Supply in the Long Run and in the Short Run
19.2C Short-Run and Long-Run Equilibrium in a Closed Economy
Case Study 19-1 Deviations of Short-Run Outputs from the Natural Level in the United States
19.3 Aggregate Demand in an Open Economy Under Fixed and Flexible Exchange Rates
19.3A Aggregate Demand in an Open Economy Under Fixed Exchange Rates
19.3B Aggregate Demand in an Open Economy Under Flexible Exchange Rates
19.4 Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demand in Open Economies with Flexible Prices
19.4A Real-Sector Shocks and Aggregate Demand
19.4B Monetary Shocks and Aggregate Demand
19.4C Fiscal and Monetary Policies and Aggregate Demand in Open Economies
19.5 Effect of Fiscal and Monetary Policies in Open Economies with Flexible Prices
Case Study 19-2 Central Bank Independence and Inflation in Industrial Countries
Case Study 19-3 Inflation targeting—A New approach to Monetary Policy
19.6 Macroeconomic Policies to Stimulate Growth and Adjust to Supply Shocks
19.6A Macroeconomic Policies for Growth
19.6B Macroeconomic Policies to Adjust to Supply Shocks
Case Study 19-4 Petroleum Shocks and Stagflation in the United States
Case Study 19-5 Impact of an Increase in the Price of Petroleum
Case Study 19-6 Actual and Natural Unemployment Rates and Inflation in the United States
Summary
Key Terms
Questions for Review
Problems
Chapter 20 Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination
20.1 Introduction
20.2 The Case for Flexible Exchange Rates
20.2A Market Efficiency
20.2B Policy Advantages
20.3 The Case for Fixed Exchange Rates
20.3A Less Uncertainty
20.3B Stabilizing Speculation
20.3C Price Discipline
Case Study 20-1 Macroeconomic Performance under Fixed and Flexible Exchange Rate Regimes
20.3D The Open-Economy Trilemma
20.4 Optimum Currency Areas, the European Monetary System, and the European Monetary Union
20.4A Optimum Currency Areas
20.4B European Monetary System (1979–1998)
Case Study 20-2 The 1992–1993 Currency Crisis in the European Monetary System
20.4C Transition to Monetary Union
Case Study 20-3 Maastricht Convergence Indicators
20.4D Creation of the Euro
Case Study 20-4 Benefits and Costs of the Euro
20.4E The European Central Bank and the Common Monetary Policy
Case Study 20-5 The Eurozone Crisis
20.5 Currency Boards Arrangements and Dollarization
20.5A Currency Board Arrangements
Case Study 20-6 Argentina’s Currency Board Arrangements and Crisis
20.5B Dollarization
20.6 Exchange Rate Bands, Adjustable Pegs, Crawling Pegs, and Managed Floating
20.6A Exchange Rate Bands
20.6B Adjustable Peg Systems
20.6C Crawling Pegs
20.6D Managed Floating
Case Study 20-7 Exchange Rate Arrangements of IMF Members
20.7 International Macroeconomic Policy Coordination
Summary
Key Terms
Questions for Review
Problems
Appendix
A20.1 Exchange Rate Arrangements
Chapter 21 The International Monetary System: Past, Present, and Future
21.1 Introduction
21.2 The Gold Standard and the Interwar Experience
21.2A The Gold Standard Period (1880–1914)
21.2B The Interwar Experience
21.3 The Bretton Woods System
21.3A The Gold-Exchange Standard (1947–1971)
21.3B Borrowing from the International Monetary Fund
21.4 Operation and Evolution of the Bretton Woods System
21.4A Operation of the Bretton Woods System
21.4B Evolution of the Bretton Woods System
Case Study 21-1 Macroeconomic Performance Under Different Exchange Rate Regimes
21.5 U.S. Balance-of-Payments Deficits and Collapse of the Bretton Woods System
21.5A U.S. Balance-of-Payments Deficits
21.5B Collapse of the Bretton Woods System
21.6 The International Monetary System: Present and Future
21.6A Operation of the Present System
21.6B Current IMF Operation
21.6C Problems with Present Exchange Rate Arrangements
21.6D Proposals for Reforming Present Exchange Rate Arrangements
21.6E Financial Crises and the International Monetary System
Case Study 21-2 The Anatomy of a Currency Crisis: The Collapse of the Mexican Peso
Case Study 21-3 Chronology of Economic Crises in Emerging Markets
Case Study 21-4 The 2008–2009 Global Financial Crisis and Great Recession
21.6F Other Current International Economic Problems
Case Study 21-5 Trade Imbalances of the Leading Advanced Nations
Summary
Key Terms
Questions for Review
Problems
Appendix
A21.1 International Reserves: 1950–2018
Glossary of Key Terms
Name Index
Subject Index
EULA