World Trade and Payments,9780321089045

World Trade and Payments

by ; ;
Edition: 9th
ISBN13: 9780321089045
ISBN10: 0321089049
Format: Paperback
Pub. Date: 2007-01-01
Publisher(s): Addison Wesley
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List Price: $145.33

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Summary

Renowned for its precise, in-depth coverage of international trade and finance, this classic text features a balance of the latest research, critical policy issues, and sophisticated economic analysis.

Table of Contents

Preface xv
Introduction
1(10)
The Subject of International Economics
2(3)
Patterns of International Trade
5(3)
The Organization of This Book
8(3)
PART I THE BASIC MODEL OF INTERNATIONAL TRADE 11(58)
Commodity Trade
13(18)
The Gains From Trade
14(6)
Free-Trade Equilibrium
20(2)
Product Variety and Intra-Industry Trade
22(1)
Arguments About Free Trade
23(3)
Summary
26(5)
Chapter Problems
27(1)
Suggestions for Further Reading
27(1)
Appendix: The Box Diagram and the Contract Curve
28(3)
Expanded Gains From Trade With Resource Movements
31(18)
The Production Possibilities Schedule and Autarky Equilibrium
31(3)
Trade and Comparative Advantage
34(4)
Scale Economies and World Trade
38(1)
Sources of Gains From Trade: A Recapitulation
39(3)
Free Trade and The Behavior of Import Demand
42(2)
Summary
44(5)
Chapter Problems
45(1)
Suggestions for Further Reading
46(1)
Appendix A: Constant Returns to Scale and Increasing Opportunity Costs
46(1)
Appendix B: The Offer Curve Diagram
47(2)
Applications and Interpretations
49(20)
Disturbances From Abroad And The Terms of Trade
49(2)
Protecting Import-Competing Goods
51(2)
Growth and Trade
53(2)
The Transfer Problem
55(3)
Wider Interpretations of the Basic Trade Model
58(4)
Trade and Market Structure
62(1)
Summary
63(6)
Chapter Problems
64(1)
Suggestions for Further Reading
65(1)
Appendix: The Stability Issue
65(4)
PART II TRADE PATTERNS, INCOME DISTRIBUTION, AND GROWTH 69(104)
Technology and Productivity: The Ricardian Trade Model
71(20)
Before International Trade
71(2)
International Trade: The Role of Comparative Costs
73(2)
Free-Trade Equilibrium
75(3)
International Wage Comparisons and Productivities
78(3)
Many Commodities and Many Countries
81(2)
Globalization: Productivity Shocks and Technological Spillovers
83(1)
Non-Traded Commodities
84(2)
Summary
86(5)
Chapter Problems
87(2)
Suggestions for Further Reading
89(1)
Appendix: Transitional Unemployment
89(2)
Trade and Local Income Distribution: The Specific Factors Model
91(16)
Diminishing Returns and Factor Hires
91(1)
Outputs and Income Distribution: The Closed Economy
92(1)
The Distribution of Income with Free Trade
93(2)
Growth in Factor Endowments
95(2)
Political Economy Aspects
97(1)
The Pattern of Trade
98(1)
Alternative Interpretations: Specific Capital or Labor
99(1)
The Dutch Disease
100(2)
Summary
102(5)
Chapter Problems
104(1)
Suggestions for Further Reading
104(1)
Appendix: The Transformation Schedule
105(2)
Factor Endownments and Trade: The 2 X 2 Heckscher-Ohlin Model
107(22)
The Case of Rigid Technology
108(3)
Flexible Technology and Autarky Comparisons
111(3)
The Pattern of Trade and the Distribution of Income
114(3)
The Heckscher-Ohlin Theorem and Empirical Trade Patterns
117(4)
Summary
121(8)
Chapter Problems
122(1)
Suggestions for Further Reading
123(1)
Appendix A: The Production Box
124(1)
Appendix B: Production Structures in Trade: A Review
125(4)
Trade, Growth, and Product Variety
129(18)
Trade Patterns: What to Produce
129(5)
Concentration in Production
134(2)
Economic Growth and Changing Comparative Advantage
136(1)
Prevalence of Intra-Industry Trade
137(1)
Product Variety and Intra-Industry Trade
137(6)
Summary
143(4)
Chapter Problems
144(1)
Suggestions for Further Reading
145(2)
Trade in Intermediate Goods and Factors of Production
147(26)
Fixed Resources and Footloose Production Processes
147(6)
Footloose Inputs: The Joint Role of Comparative and Absolute Advantage
153(4)
Factor Movements, Efficiency, and Welfare
157(3)
International Capital Movements: Selected Issues
160(3)
Multinationals and Foreign Direct Investment
163(6)
Summary
169(4)
Chapter Problems
171(1)
Suggestions for Further Reading
172(1)
PART III THE THEORY AND PRACTICE OF COMMERCIAL POLICY 173(106)
Protection and the National Welfare
175(18)
The Tariff in a Small Country
175(8)
The Tariff in a Large Country
183(1)
Tariffs and Domestic Welfare
184(1)
Tariffs and World Welfare
185(1)
Summary
186(7)
Chapter Problems
187(1)
Suggestions for Further Reading
188(1)
Appendix: Tariffs and the Offer Curve
188(5)
The Political Economy of Protection
193(16)
The Tariff as a Device for Raising Revenue
193(2)
The Tariff as a Second-Best Device
195(3)
Tariffs, The Distribution of Income, and Rent-Seeking Activities
198(5)
Growth, Protection, and Welfare
203(2)
Protection and Unemployment
205(1)
Summary
206(3)
Chapter Problems
207(1)
Suggestions for Further Reading
207(2)
Trade Policy and Imperfect Competition
209(26)
Monopoly and the Gains from Trade
209(4)
Cartels and the Interests of Producing and Consuming Countries
213(3)
Monopoly and Policies of Exporting and Importing Countries
216(7)
Industrial Policy and Market Rivalry
223(5)
Summary
228(7)
Chapter Problems
230(1)
Suggestions for Further Reading
231(1)
Appendix: International Duopoly and National Strategy
231(4)
Trade Controls in Practice
235(18)
Tariffs: Levels and Trends
235(2)
Multilateral Tariff Reduction
237(3)
The Trend Toward ``Managed'' Trade
240(10)
Summary
250(3)
Chapter Problems
251(1)
Suggestions for Further Reading
251(2)
Preferential Arrangements and Regional Issues in Trade Policy
253(26)
Regional Preferences and Regional Trade
253(1)
Welfare Effects of Trade Preferences
254(5)
Preferential Arrangements in Practice
259(5)
Trade Problems of the Economies in Transition
264(4)
Trade and Growth: The Asian NICs
268(5)
Preferential Arrangements: New Policy Issues
273(2)
Summary
275(4)
Chapter Problems
277(1)
Suggestions for Further Reading
278(1)
PART IV MONEY, INCOME, AND THE BALANCE OF PAYMENTS 279(142)
The Balance of Payments Accounts
281(18)
Breakdown of the Accounts
283(3)
How Individual Transactions Are Recorded
286(2)
Double-Entry Bookkeeping
288(2)
The Balances
290(5)
Statistical Errors in the Payments Accounts
295(2)
Summary
297(2)
Chapter Problems
297(2)
The Foreign Exchange Market and Trade Elasticities
299(16)
The Flow of Supply and Demand for Foreign Exchange
299(6)
Empirical Effects of Devaluation on the Trade Balance
305(3)
Summary
308(7)
Chapter Problems
309(3)
Suggestions for Further Reading
312(1)
Appendix: Stability of the Foreign Exchange Market
312(3)
National Income and the Trade Balance
315(20)
The Small-Country Keynesian Model
315(3)
The National Saving-Investment Identity
318(1)
Multipliers
319(3)
The Transfer Problem
322(2)
The Two-Country Keynesian Model for a Large Country
324(6)
Summary
330(5)
Chapter Problems
331(2)
Suggestions for Further Reading
333(2)
Spending and the Exchange Rate in the Keynesian Model
335(28)
Transmission of Disturbances
335(3)
Expenditure-Switching and Expenditure-Reducing Policies
338(7)
Monetary Factors
345(7)
Summary
352(11)
Chapter Problems
352(3)
Suggestions for Further Reading
355(1)
Appendix A: The Laursen-Metzler-Harberger Effect
355(5)
Appendix B: The Assignment Problem
360(3)
The Money Supply, The Price Level, and the Balance of Payments
363(38)
The Nonsterilization Assumption
363(5)
The Purchasing Power Parity Assumption
368(12)
Purchasing Power Parity in a Hyperinflation
380(3)
The Monetarist Model of the Balance of Payments
383(7)
Summary
390(11)
Chapter Problems
391(2)
Suggestions for Further Reading
393(1)
Appendix A: The Gold Standard
393(4)
Appendix B: Reserve Flows After Spending Increase and Devaluation
397(4)
Developing Countries and Other Small Open Economies with Non-Traded Goods
401(20)
Non-Traded Goods
402(3)
Expenditure and the Relative Price of Non-Traded Goods
405(6)
The Monetary Approach with Non-Traded Goods
411(6)
Summary
417(4)
Chapter Problems
418(1)
Suggestions for Further Reading
419(2)
PART V INTERNATIONAL FINANCIAL MARKETS AND THEIR MACROECONOMIC IMPLICATIONS 421(158)
The Globalization of Financial Markets
423(34)
The Euromarkets
424(2)
The Foreign Exchange Market
426(6)
Liberalization
432(8)
Innovation
440(9)
Summary
449(8)
Chapter Problems
449(1)
Suggestions for Further Reading
450(1)
Appendix: The Theory of International Capital Flows
450(7)
The Mundell-Fleming Model with Partial International Capital Mobility
457(22)
The Model
459(3)
Fiscal Policy and the Degree of Capital Mobility under Fixed Rates
462(2)
Monetary Policy and the Degree of Capital Mobility Under Fixed Rates
464(2)
When Money Flows Are Not Sterilized
466(2)
Other Automatic Mechanisms of Adjustment
468(1)
The Pursuit of Internal and External Balance
469(3)
Summary
472(7)
Chapter Problems
473(1)
Suggestions for Further Reading
473(1)
Appendix: Zones of Internal and External Balance
473(6)
Fiscal and Monetary Policy Under Modern Financial Market Conditions
479(22)
Fiscal Policy Under Floating: An Effect Mitigated by Capital Mobility
480(6)
Monetary Policy Under Floating: An Effect Enhanced by Capital Mobility
486(3)
Policy Under Perfect Capital Mobility
489(9)
Summary
498(3)
Chapter Problems
499(1)
Suggestions for Further Reading
500(1)
Crises in Emerging Markets
501(34)
Inflows to Emerging Markets
501(7)
Managing Outplows
508(1)
Speculative Attacks
509(6)
Contagion
515(2)
IMF Country Programs
517(3)
Contractionary Effects of Devaluation
520(6)
Capital Controls
526(3)
Reform of International Financial Architecture
529(3)
Summary
532(3)
Suggestions for Further Reading
532(3)
Interdependence and Policy Coordination
535(18)
International Transmission of Disturbances Under Floating Exchange Rates
535(5)
Econometric Models of the Interdependent World Economy
540(5)
International Macroeconomic Policy Coordination
545(5)
Summary
550(3)
Chapter Problems
550(1)
Suggestions for Further Reading
551(2)
Supply and Inflation
553(26)
The Aggregate Supply Relationship
553(8)
Supply Relationship with Indexed Wages
561(3)
Inflation
564(2)
Alternative Anchors for a Country's Money
566(3)
The Choice of Exchange Rate Regime
569(7)
Summary
576(3)
Chapter Problems
577(1)
Suggestions for Further Reading
578(1)
PART VI THE DETERMINATION OF EXCHANGE RATES IN INTERNATIONAL ASSET MARKETS 579
Expectations, Money, and the Determination of the Exchange Rate
581
Interest Rate Parity Conditions
581
The Monetarist Model of Exchange Rates, With Flexible Prices
583
Two Examples of the Importance of Expectations
593
Overshooting and the Real Exchange Rate
597
Two More Examples of the Importance of Expectations
609
Summary
613
Chapter Problems
614
Suggestions for Further Reading
615
Exchange Rate Forecasting and Risk
617
Forecasting the Spot Exchange Rate
617
The Role of Exchange Risk
623
Portfolio Balance Effects on the Exchange Rate
627
Summary
632
Chapter Problems
632
Suggestions for Further Reading
634
Supplements for Selected Chapters S-1
Supplement to Chapter 2: The Equations of Exchange Equilibrium
S-3
Supplement to Chapter 3: Real Incomes, Production, Elasticities, and the Trade Pattern
S-4
Supplement to Chapter 4: Stability and Comparative Statics in the Basic Trade Model
S-10
Supplement to Chapter 6: The Specific-Factors Model of Production
S-17
Supplement to Chapter 7: The Two-Sector Heckscher-Ohlin Model
S-23
Supplement to Chapter 10: Real Incomes, Prices, and the Tariff
S-28
Supplement to Chapter 11: Tariffs, Growth, and Welfare
S-33
Supplement to Chapter 12: Imperfect Competition, Trade Restrictions, and Welfare
S-40
Supplement to Chapter 16: Import and Export Elasticities
S-44
Supplement to Chapter 19: The Monetarist Two-Country Model of the Balance of Payments
S-44
Supplement to Chapter 25: The Locomotive Theory
S-48
Supplement to Chapter 26: Real Wage Indexation
S-51
Supplement to Chapter 27: The Monetary Model of the Exchange Rate
S-52
Supplement to Chapter 28: The Optimally Diversified Portfolio
S-56
Index I-1

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