International Economics 2nd Ed.

Theory and Policy

Paul R. Krugman, Maurice Obstfeld

Publisher: HarperCollins, 1991, 725 pages

ISBN: 0-673-52186-9

Keywords: International Enterprise, Macroeconomics

Last modified: Aug. 1, 2021, 3:53 p.m.

International Economics: Theory and Policy provides engaging, balanced coverage of the key concepts and practical applications of the two main topic areas of the discipline. For both international trade and international finance, an intuitive introduction to theory is followed by detailed coverage of policy applications

    1. Introduction
      • What Is International Economics About?
        • The Gains from Trade
        • The Pattern of Trade
        • Protectionism
        • The Balance of Payments
        • Exchange-Rate Determination
        • International Policy Coordination
        • The International Capital Market
      • International Economics: Trade and Money
  • Part One: International Trade Theory
    1. Labor Productivity and Comparative Advantage: The Ricardian Model
      • A One-Factor Economy
        • Production Possibilities
        • Relative Prices and Supply
      • Trade in a One-Factor World
        • Determining the Relative Price After Trade
        • The Gains from Trade
        • A Numerical Example
      • Misconceptions about Comparative Advantage
        • Productivity and Competitivness
        • The Sweatshop Labor Argument
        • Unequal Exchange
      • 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
        • Key Terms
        • Problems
        • Further Reading
      • Appendix A: Ricardian Model with Very Many Goods
      • Technology and Specialization
      • Demand and Equilibrium
      • The Gains from Trade
      • An Application: Productivity Growth
    2. Specific Factors and Income Distribution
      • The Specific Factors Model
        • 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
        • Resources and Relative Supply
        • Trade and Relative Prices
        • The Pattern of Trade
      • Income Distribution and the Gains from Trade
      • The Political Economy of Trade: A Preliminary View
        • Optimal Trade Policy
        • Income Distribution and Trade Politics
      • Box: Specific Factors and the Beginnings of Trade Theory
      • Summary
      • Appendix: Furtehr Details on Specific Factors
      • Marginal and Total Product
      • Relative Prices and the Distribution of Income
    3. Resources and Trade: The Heckscher-Ohlin Model
      • A  Model of a Two-Factor Economy
        • Assumptions of the Model
        • Production Possibilities
        • Goods Prices and Factor Prices
      • Effects of International Trade Between Two-Factor Economies
        • Relative Prices and the Pattern of Trade
        • Trade and the Distribution of Income
        • Factor Price Equalization
      • Empirical Evidence on the Heckscher-Ohlin Model
        • Testing the Heckscher-Ohlin Model
        • Implications of the Tests
      • Summary
      • Appendix: The Heckscher-Ohlin Model with Variable Coefficients
      • Choice of Technique
      • Goods Prices and Factor Prices
      • Allocation of Resources
    4. 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
        • Relative Supply and the Terms of Trade
        • International Effects of Growth
      • Case Study: Foreign Growth and the U.S. Terms of Trade
      • International Transfers of Income: Shifting the RD Curve
        • The Transfer Problem
        • Effects of a Transfer on the Terms of Trade
        • Presumptions about the Terms of Trade Effects of Transfers
      • Case Study: The Transfer Probelm for the United States
      • Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD
        • Relative Demand and Supply Effects of a Tariff
        • Effects of an Export Subsidy
        • Implications of Terms of Trade Effects: Who Gain and Who Loses?
      • Summary
      • Appendix: Representing International Equilibrium with Offer Curves
      • Deriving a Country's Offer Curve
      • International Equilibrium
    5. Economics of Scale: Imperfect Competition, and International Trade
      • Economics of Scale and International Trade: An Overview
      • Economics of Scale and Market Structure
      • The Theory of Imperfect Competition
        • Monopoly: A Brief Review
        • Monopolistic Competition
        • Limitations of the Monopolistic Competition Model
      • Monopolistic Competition and Trade
        • The Effects of Increased Market Size
        • Gains from an Integrated Market: A Numerical Example
        • Economies of Scale and Comparative Advantage
        • The Significance of Intraindustry Trade
        • Why Intraindustry trade Matters
      • Case Study: Intraindustry Trade in Action: The North American Auto Pact
      • Dumping
        • The Economics of Dumping
      • Box: Reverse Dumping
        • Reciprocal Dumping
      • External Economies and International Trade
        • External Economies and the Pattern of Trade
        • Trade and Welfare with External Economies
        • Dynamic Increasing Returns
      • Summary
      • Appendix: Determining Marginal Revenue
    6. International Factor Movements
      • International Labor Mobility
        • A One-Good Model Without Factor Mobility
        • International Labor Movement
        • Extending the Analysis
      • Box: International Labor Mobility in Practice: "Guest Workers" in Europe
      • International Borrowing and Lending
        • Intertemporal Production Possibilities and Trade
        • The Real Interest Rate
        • Intertemporal Comparative Advantage
      • Box: Changes in the Pattern of Capital Movements in the 1980s
      • Direct Foreign Investment and Multinational Firms
        • The Theory of Multinational Enterprise
        • Multinational Firms in Practice
      • Case Study: Foreign Direct Investment in the United States
      • Summary
      • Appendix: More on Intertemporal Trade
  • Part Two: International Trade Policy
    1. 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
      • 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
      • Box: The Case of the Forbidden Phone Booths
      • Case Study: A Voluntary Export Restraint in Practice: Japanese Autos
        • Local Content Requirements
      • Case Study: A Local Content Scheme: The Oil Import Quota in the 1960s
        • Other Trade Policy Instruments
      • Summary
      • Appendix I: Tariff Analysis in General Equilibrium
      • A Trafiff in a Small Country
      • A Tariff in a Large Country
      • Appendix II: Tariffs and Import Quotas in the Presence of Monopoly
      • The Model with Free Trade
      • The Model with a Tariff
      • The Model with an Import Quota
      • Comparing a Tariff and a Quota
    2. The Political Economy of Trade Policy
      • The Case for Free Trade
        • Free Trade and Efficiency
        • Additional gains from Free Trade
        • Political Arguments for Free Trade
      • National Welfare Arguments Against Free Trade
        • The Terms of Trade Arguments for a Tariff
        • The Domestic Market Failure Argument Against Free Trade
        • How Convincing Is the Market Failure Argument?
      • Income Distribution and Trade Policy
        • Weighted Social Welfare
        • Conservative Social Welfare
        • Collective Action
        • Who Gets Protected?
      • International Negotiations and Trade Policy
        • The Advantage of Negotiation
        • International Trade Agreements: A Brief History
        • Stresses on the Trading System
        • Preferential Trading Agreements
      • Case Study: Recent Regional Trading Agreements
      • Summary
      • Appendix: Proving that the Optimum Tariff Is Positive
      • Demand and Supply
      • The Tariff and Prices
      • The Tariff and Domestic Welfare
    3. Trade Policy in Developing Countries
      • Trade Policy to Promote Manufacturing
        • Why Manufacturing Is Favored: The Infant Industry Argument
        • How Manufacturing Is Favored: Import-Substituting Industrilization
        • Results of Favoring Manufacturing: Problems of Import-Substituting Industrilization
      • Box: Trade Liberalization and Economic growth: The Case of China
        • Another Way to Favor Manufacturing: Industrialization Through Exports
      • Problems of the Dual Economy
        • The Symptom of Dualism
      • Case Study: Economic Dualism in India
        • Dual Labor Markets and Trade Policy
        • Trade Policy as a Cause of Economic Dualism
      • Negotiations Between Developinga and Advanced Countries: The North-South Debate
        • Are Poor Nations Exploited?
        • The Role of Foreign Capital and Multinational Firms in Development
        • Raising the Export Prices of Developing Countries: Commodity Export Cartels
      • Case Study: OPEC
      • Summary
    4. Industrial Policy in Advanced Countries
      • Popular Arguments for Industrial Policy
        • Encouraging Industries With High Value Added Per Worker
        • Encouraging Linkage Industries
        • Promoting Industries with Future Growth Potential
        • Countering the Effects of Other Countries' Industrial Policies
      • Sophisticated Arguments for Industrial Policy
        • Technology and Externalities
        • Imperfect Competition and Strategic Trade Policy
      • Industrial Policy in Practice
        • The Industrial Policy of Japan
        • Industrial Policy in Other Countries
      • Case Studies of Industrial Policy
      • Case Study: Japanese Targeting of Steel (1960-Early 1970s)
      • Case Study: European Support of Aircraft in the 1970s and 1980s
      • Case Study: Japanese targeting of Semiconductors (Mid-1970s to Date)
      • Box: The HDTV Debate
      • Summary
  • Part Three: Exchange Rates and Open-Economy Macroeconomics
    1. National Income Accounting and the Balance of Payments
      • The National Income Accounts
        • National Product and national Income
        • Capital Depreciation, International Transfers, and Tax Wedges
      • National Income Accounting in a Closed Economy
        • Consumption
        • Investment
        • Government Purchases
      • The National Income Identity for a Closed Economy
        • An Imaginary Closed Economy
        • Implications for National Saving
      • National Income Accounting for an Open Economy
        • The National Income Identity for an Open Economy
        • The Current Account and Foreign Indebtedness
        • Saving and the Current Account
        • Private and Government Saving
      • Case Study: Do Government Budget Deficits Worsen the Current Account?
      • The Balance of Payment Accounts
        • The Current Account, Once Again
        • The Capital Account
        • The Statistical Discrepancy
      • Box: The Mystery of the Missing Surplus
        • Official Reserve Transactions
      • Summary
    2. 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
      • Box: Exchange Rates and Prices, Soviet Style
        • Characteristics of the Market
        • Spot Rates and Forward Rates
        • Futures and Options
      • Box: Managing Foreign-Exchange Risk: The Long View
      • The Demand for Foreign-Currency Assets
        • Assets and Asset Returns
        • 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
      • Summary
      • Appendix: Forward Exchange Rates and Covered Interest Parity
    3. Money, Interest Rates, and Exchange Rates
      • Money Defined: A Brief Review
        • 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 Rate 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/DM Exchange Rate
        • German Money Supply and the Dollar/DM 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
        • Short-Run Price Rigidity vs. Long-Run Price Flexibility
      • Box: Money-Supply Growth and Hyperinflation in Bolivia
        • Permanent Money-Supply Changes and the Exchange Rate
        • Exchange-Rate Overshooting
      • Summary
    4. 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 the PPP
        • The Fisher Effect
        • A Useful Diagram
      • Empirical Evidence on PPP and the Law of One Price
      • Explaining the Problems with PPP
      • Box: Some Meaty Evidence on the Law of One Price
        • Trade Barriers and Nontradables
        • Departure from Free Competition
        • International Differences in Price-Level Measurement
        • PPP in the Short Run and in the Long Run
      • Case Study: Why Price Levels Are Lower in Poorer Countries
      • Beyond Purchsing Power Parity: A General Model of Exchange Rates in the Long Run
        • The Real Exchange Rate
        • Demand, Supply, and the Long-Run Real Exchange Rate
      • Box: Productivity Growth and the Real Dollar/Yen Exchange Rate
        • Nominal and Real Exchange Rates in Long-Run Equilibrium
        • Long-Run Shifts in Nominal Exchange Rates: A Generalized View
      • International Interest-Rate Differences and the Real Exchange rate
        • Interest Parity and Inflation Revisited
        • Completing the generalized Model
      • Summing Up the Long-Run Exchange-Rate Model
        • The Monetary Approach
        • The Generalized Long-Run Exchange-Rate Model
      • Box: Runaway Inflation and Interest Rates: Argentina
      • Real Interest Parity
      • Summary
    5. 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
      • 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
        • Some 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
        • A Permanent Fiscal Expansion
      • Macroeconomic Policies and the Current Account
      • Case Study: U.S. Monetary and Fiscal Policy in Action, 1979-1983
      • Gradual Trade-Flow Adjustment and Current-Account Dynamics
        • The J-Curve
        • The Beachhead Effect
        • Exchange-Rate Pass-Through and Inflation
      • Case Study: Import Prices and the Unted States Current Account in the 1980s
      • Box: Foreign Travel and the Japanese Current-Account Surplus
      • Summary
      • Appendix I: The IS-LM Model and the DD-AA Model
      • Appendix II: The Marshall-Lerner Condition and Empirical Estimates of Trade Elasticities
    6. Fixed Exchange Rates and Foreign-Exchange Intervention
      • Why Study Fixed Exchange Rates?
      • Central-Bank Intervention and the Money Supply
        • The Central-Bank Balance Sheet
        • 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
      • 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 Crisis and Capital Flight
      • Managed Floating and Sterilized Intervention
        • Perfect Asset Substitutability and the Inefficacy of Sterilized Intervention
        • Foreign-Exchange Market Equilibrium Under Imperfect Asset Substitutability
        • The Effect of Sterilized Intervention with Imperfect Asset Substitutability
        • Evidence on the Effects of Sterilized Intervention
        • The Signaling Effect of Intervention
      • Reserve Currencies in the World Monetary System
      • Box: Games Governments Play
        • The Mechanics of a Reserve-Currency Standard
        • The Assymetric Position of the Reserve Center
      • The Gold Standard
        • The Mechanics of a Gold Standard
        • Symmetric Monetary Adjustment Under a Gold Standard
      • Box: Intervention Arrangements in the European Monetary System
        • Benefits and Drawbacks of the Gold Standard
        • The Gold-Exchange Standard
      • Summary
      • Appendix I: Equilibrium in the Foreign-Exchange Market with Imperfect Asset Substitutability
      • Demand
      • Supply
      • Equilibrium
      • Appendix II: The Monetary Approach to the Balance of Payments
      • Appendix III: The Timing of Balance of Payments Crises
  • Part Four: International Macroeconomic Policy
    1. The International Monetary System
      • Macroeconomic Policy Goals in an Open Economy
        • Internal Balance: Full Employment and price-Level Stability
        • External Balance: The Optimal Level of the Current Account
      • 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 "Rule of the Game": Myth and Reality
      • Box: Hume vs. Mercantilists
        • Internal Balance Under the Gold Standard
      • The Interwar Years, 1918-1939
        • The German Hyperinflation
        • The Fleeting Return to Gold
        • International Economic Disintegration
      • The Bretton Woods System and the International Monetary Fund
        • Goals and Structure of the IMF
        • Convertibility
      • Internal and External Balance Under the Bretton Woods System
        • The Changing Meaning of External Balance
        • Speculative Capital Flows and Crises
      • Analyzing Policy Options Under the Bretton Woods System
        • Maintaining Internal Balance
        • Maintaining External Balance
        • Expenditure-Changing and Expenditure-Switching Policies
      • The External-Balance Problem of the United States
      • Case Study: The Decline and Fall of the Bretton Woods System
        • The Calm Before the Storm: 1958-1965
        • The Vietnam Military Buildup and the Great Society: 1965-1968
        • From the Gold Crisis to the Collapse: 1968-1973
      • Worldwide Inflation and the Transition to Floating Rates
      • Summary
    2. Macroeconomic Policy and Coordination Under Floating Exchange Rates
      • The Case for Floating Exchange Rates
        • Monetary Policy Autonomy
        • Symmetry
        • Exchange Rates as Automatic Stabilizers
      • The Case Against Floating Exchange Rates
        • Discipline
        • Destabilizing Speculation and Money-Market Disturbances
        • Injury to International Trade and Investment
        • Uncoordinated Economic Policies
        • the Illusion of Greater Autonomy
      • Case Study: Exchange-Rate  Experience Between the Oil Shocks, 1973-1980
        • The First Oil Shock and Its Effects, 1973-1975
        • Rambouillet and Jamaica: Revising the IMF's Charter, 1975-1976
        • The Weak Dollar, 1976-1979
        • The Second Oil Shock, 1979-1980
      • A Two-Country Model of Macroeconomic Interaction Under a Floating Rate
      • Case Study: The great Recession, the Dollar, and Coordinated Intervention, 1980-1990
        • Disinflation and the 1981-1983 recession
        • Fiscal Policies, the Current Account, and the Resurgence of Protectionism
        • From the Plaza to the Louvre and Beyond: Trying to Manage Exchange Rates
      • What Has Been Learned Since 1973?
        • Monetary Policy Autonomy
        • Symmetry
        • The Exchange Rate as an Automatic Stabilizer
        • Discipline
        • Destabilizing Speculation
        • International Trade and Investment
        • Policy Coordination
      • Directions for Reform
      • Case Study: Lessons of the EMS Experience, 1979-1990
      • Summary
      • Appendix: International Policy-Coordination Failures
    3. The Global Capital Market: Performance and Policy Problems
      • 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 vs. Equity
      • International Banking and the International Capital Market
        • The Structure of the International Capital Market
        • Offshore Banking and Offshore Currency Trading
      • Eurodollars and Other Eurocurrencies
        • How Big I sthe Eurocurrency Market?
        • How Eurocurrencies Are Created
        • The Growth of Eurocurrency Trading
        • The Importance of Regulatory Asymmetries
        • Eurocurrencies and Macroeconomic Stability
      • Box: Of Samurai and Sushi: Opening Japan's Financial Markets
      • Regulating International Banking
        • The Problem of Bank Failure
        • Difficulties in Regulating International Banking
      • Box: The Banco Ambrosiano Collapse
        • International Regulatory Cooperation
      • How Well Has the International Capital Market Performed?
        • The Extent of International Portfolio Diversification
        • The Extent of Intertemporal Trade
      • Box: 1992: Toward the Single European Market
        • Onshore-Offshore Interest Differentials
        • The Efficiency of the Foreign-Exchange Market
      • Summary
    4. Developing Countries and the International Debt Problem
      • Income and Wealth in the World Economy
      • Macroeconomic Features of Developing Countries
        • Undeveloped Financial Markets
        • Government's Pervasive Role
        • Inflation and the Government Budget
        • Pegged Exchange Rates, Exchange Controls, and Inconvertible Currencies
      • Box: How Important Is Seigniorage?
        • The Structure of Developing-Country Exports
      • Developing-Country Borrowing and Debt
        • The Economics of Borrowing by Developing Countries
        • Alternative Forms of Capital Inflow
        • Government and Publicly Guaranteed Borrowing
      • Case Study: Orthodox and Heterodox Stabilization Programs in Latin America
      • Developing-Country Borrowing in Historical Perspective
        • Capital Flows to Developing Countries Before 1914
        • The Interwar Period and Its Aftermath: 1918-1972
        • Borrowing After 1973: Oil Shocks and Floating Interest Rates
      • Box: The Paris Club
      • Origins of the Developing-Country Debt Crisis
        • Leading Up to the Crisis
        • Developing Countries in the Worldwide Recession
        • Mexico: The Beginning of the Crisis
        • The Debt Crisis in Other Countries
      • The Economics of a Sovereign Default
        • The Costs of Sovereign Default
        • The Benefit of Sovereign Default
        • When Does a Default Occur?
      • Managing the Debt Crisis
        • The First Phase: Concerted Lending
        • The Role of the IMF
          The Second Phase: Trying to Muddle Through
      • Box: Debts of the Eastern Bloc
        • The Brady Plan
      • Market-Based Debt Reduction
        • The Mechanics of Debt Buybacks: An Example
        • Winners and Losers in Buybacks
      • Third-Party Buybacks and Debt Forgiveness
      • Other Asset Swaps
        • Debt-for-Equity Swaps
        • Debt-for-Debt Swaps
      • Prospects for the Debt Crisis
        • The First Effects of the Brady Plan
        • Obstacles to Debt Reduction
        • The Road Ahead
      • Summary
      • Appendix I: Why Self-Financed Debt Buybacks Hurt the Debtor
      • Marginal and Average Debt Value
      • A Diagrammatic Analysis of Debt Values
      • Analyzing Debt Forgiveness
      • Appendix II: Analyzing Senior Debt Swaps
    • Mathematical Postscripts

Reviews

International Economics

Reviewed by Roland Buresund

OK ***** (5 out of 10)

Last modified: Oct. 13, 2008, 8:57 p.m.

Well, one of the authors got the Nobel Price of Economics today (not really, but it is refered to as the Nobel Price), so I felt compelled to comment on the book.

If you're heavy into economic theory, this may be a book for you, but for the rest of us (even us that find nothing strange with DCF or equivalents) this is way over our heads. The book contains among other things a certain criticism of the Heckscher-Ohlin theory (which is one of the stated reason way Krugman got the price), but is filled with mathematical notations, formulas and diagrams everywhere.

Only for the specialised reader.

Comments

There are currently no comments

New Comment

required

required (not published)

optional

required

captcha

required