1 Introduction 1
Part 1 International Trade Theory 11
2 World Trade: An Overview 12
3 Labor Productivity and Comparative Advantage:The Ricardian Model 27
4 Resources, Comparative Advantage, and Income Distribution 54
5 The Standard Trade Model 88
6 Economies of Scale, Imperfect Competition, and International Trade 114
7 International Factor Movements 153
Part 2 International Trade Policy 181
8 The Instruments of Trade Policy 182
9 The Political Economy of Trade Policy 212
10 Trade Policy in Developing Countries 250
11 Controversies in Trade Policy 266
Part 3 Exchange Rates and Open-Economy Macroeconomics 287
12 National Income Accounting and the Balance of Payments 288
13 Exchange Rates and the Foreign Exchange Market:An Asset Approach 317
14 Money, Interest Rates, and Exchange Rates 351
15 Price Levels and the Exchange Rate in the Long Run 382
16 Output and the Exchange Rate in the Short Run 420
17 Fixed Exchange Rates and Foreign Exchange Intervention 460
Part 4 International Macroeconomic Policy 501
18 The International Monetary System, 1870-1973 502
19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 532
20 Optimum Currency Areas and the European Experience 565
21 The Global Capital Market: Performance and Policy Problems 594
22 Developing Countries: Growth, Crisis, and Reform 621
Mathematical Postscripts 665
Postscript to Chapter 4: The Factor Proportions Model 666
Postscript to Chapter 5: The Trading World Economy 670
Postscript to Chapter 6: The Monopolistic Competition Model 678
Postscript to Chapter 21: Risk Aversion and International Portfolio Diversification 680
Credits 687
Index 689