CONTENTS 1
Part One International Economics 1
Unit One：Basic Economic Concepts 1
Lesson 1 What is Economics About？ 1
Lesson 2 Economics as a Language 5
Lesson 3 Consumer Choice and the Law of Demand 10
Lesson 4 Markets 16
Lesson 5 Shifts in Demand 19
Unit Two：Money and Banking 23
Lesson 6 Creation of Money 23
Lesson 7 The Function of Money and the Existence of Inflation 27
Lesson 8 Gresham’s Law and the Attributes of a“Good”Currency 30
Lesson 9 A Central Bank Control the Quantity of Money 34
Lesson 10 The Functions of the Bank of England 39
Unit Three：International Finance 44
Lesson 11 The“Purchasing Power Parity”Theory of Foreign Exchange 44
Lesson 12 The Organization and Functions of the Stock Exchange 48
Lesson 13 Demand and Cost Inflation 53
Lesson 14 Black Markets for Foreign Exchange 57
Lesson 15 Exchange Rates and External“Imbalances” 61
Unit Four：International Trade 65
Lesson 16 The Basis for Trade 65
Lesson 17 Trade Tips and Comparative Advantage 69
Lesson 18 Why Is There Trade Between Nations？ 74
Lesson 19 Quotas and Tariffs 79
Lesson 20 The Measures Available to the Government to Limit Imports 86
Part Two：Selected Readings 91
1．Tobacco Industry：The Last Drag？ 91
2．Luxury Hotels：Playing Monopoly 97
3．Foreign Exchange：Unsettling 103
4．Flat Screens：Crystal Diplomacy 109
5．Turkish Banks：Sweating 115
6．European Insurance：Unleashed 120
7．Indonesian Banking：Golden Key Hole 126
8．East German Privatisation：Fast and Loose 131
9．Spanish Banks：Botin’s Bid 137
10．Indian Privatisation：Disconnected 143
11．On Wall Street：This Too Shall Pass 148
12．Chickens and Eggs 157
13．Market Manias and Murphy’s Law 167
14．CFA-franc Zone：Out of Africa 176
15．Can Clinton Bounce Back？ 184
16．Chastising Blunkett 192
17．A Delicate Balance at the Bank 200
18．Fear of Crime：Safety in Numbers 208
19．Back from the Land of the Living Dead 216
20．Fields of Green-and Disaster Areas 224
Part Three：20 Outstanding Economists 233
1．Adam Smith （1723—1790） 233
2．Jeremy Bentham （1748—1832） 236
3．Thomas Robert Malthus （1766—1834） 239
4．Jean Baptiste Say （1767—1832） 242
5．David Ricardo （1772—1823） 245
6．Antoine Augustin Cournot（1801—1877） 249
7．John Stuart Mill（1806—1873） 252
8．Karl Marx （1818—1883） 255
9．William Stanley Jevons（1835—1882） 258
10．Henry George（1839—1897） 261
11．Alfred Marshall （1842—1924） 264
12．John Bates Clark（1847—1938） 267
13．Knut Wicksell （1851—1926） 270
14．Thorstein B．Veblen （1857—1929） 274
15．Wesley C．Mitehell （1874—1948） 277
16．Arthur Cecil Pigou （1877—1959） 280
17．John Maynard Keynes（1883—1946） 283
18．Joseph Alois Schumpeter（1883—1950） 286
19．Oskar Morgenstern （1902—1977） 289
20．A．W．Phillips （1914—1975） 292