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"International Economics "captures the vitality of modern international trade and finance. A classic textbook by world-renowned authors, the Seventh Edition is comprehensively revised and updated in a new, full-color format. Each half of the book contains a core of theory chapters followed by chapters applying the theory to major policy questions of the past and present.
- Sales Rank: #928338 in Books
- Published on: 2005-08-02
- Ingredients: Example Ingredients
- Original language: English
- Number of items: 1
- Dimensions: 10.20" h x 1.20" w x 8.20" l,
- Binding: Hardcover
- 680 pages
From the Back Cover
International Economics captures the vitality of modern international trade and finance. A classic book by world-renowned authors, the Seventh Edition is comprehensively revised and updated in a new, full-color format. Each half of the book contains a core of theory chapters followed by chapters applying the theory to major policy questions of the past and present.
- Core theory chapters, followed by chapters that apply theory to major policy questions.
- Integrated treatment and empirical evidence of the latest models of trade, including the Gravity, Ricardian, specific factors, factor endowments, and imperfect competition models.
- Thorough discussion of the causes and effects of trade policy, focusing on the income-distribution effects of trade.
- Clear presentation of a unified model of open-economy macroeconomics based on an asset-market approach to exchange rate determination with a central role for expectations.
Most helpful customer reviews
114 of 143 people found the following review helpful.
Not What I've Come to Expect from Krugman
By TitaniumDreads
First off, even if you totally discount the rest of my review, buy the low price international version of this book. On the March 10, 2005 episode of the daily show Krugman elucidated his feelings quite clearly. "The real money is in textbooks. With other books, people need to decide whether to buy them or not. Students have to buy textbooks." Thanks Paul. I think I'm being charitable when I say that at $125 this book is a ripoff. It isn't even full color.
Anyway, on to the actual content of the book. I have to say that I was excited when I found out that my International economics course at Stanford was going to be using Paul Krugman's book. I've enjoyed his articles for the New York Times because they manage to cut right to the core of issues with an unusual amount of punch. Yet, time and time again I was disappointed with the frequently inpenatrable language and obtuse, unrealistic examples in this book. Unfortunately, the only part of Krugman's characteristic writing style that came through was a feeling of overwrought vitriol, which makes sense in an op-ed but has little place in a textbook. Furthermore, this book occupies a strange niche in the world of econ texts, it is not mathematically rigorous, nor is it well written. Usually we see one or the other but rarely both. Initially, I thought these observations were mine alone, but other students began openly voicing pointed criticisms of the book during class (and I am perhaps being too kind here in not repeating them). I've been in school nearly as long as I can remember and I have never seen such discontent with a text.
During the second half of the course even my econ prof became fed up and abandoned the book altogether. Given that, I find all of the positive reviews for this book rather astounding. My suspicion is that there might have been open rebellion amongst my classmates had not the professor decided to leave this text by the wayside. I also found that it is brimming with misplaced, one-sided arguments that come across as Krugman blatantly strawmanning arguments opposed to his own. One of many examples of this comes out of nowhere near the end of chapter 2. Krugman implies that anyone who doesn't believe in unmitigated free trade is intellectually irresponsible!?! This book pushes for unrestrained market fundamentalism throughout, primarily by misrepresenting any arguments that would effectively challenge it's simplistic and seemingly outdated dogma. This book, in particular, feeds into the same system of self serving scientism so prevalent in economics for the last 60 years.
Please don't mistake this review as the bile of a jilted student, I did quite well in the course. However, this is almost certainly the result of looking for alternative explanations of virtually every topic covered. The reason this book gets one star instead of two is because it lacks a lot of the modern learning tools prevalent in almost every other textbook. Things like quality questions, keywords, vocabulary and historical context all get short shrift in this this volume. If you're into learning about incomplete models that only represent a theoretical version of the world, this book is for you. Unfortunately, just like Krugman said on The Daily Show, if you are a student there is probably little chance that you have a choice on the matter. Buy the cheap international edition for 20 bucks. I would recommend that you use to the difference to buy William Easterly's Elusive Quest for Growth...and a beer.
11 of 12 people found the following review helpful.
A not-so-bad survey of international economics
By Coleman Nee
Regarding Gerald Senarclens de Grancy's comments: The idea of Krugman as a Bush administration cheerleader is pretty funny. At first I thought this was a joke but then I realised it wasn't. Granted, the book doesn't mention the Tobin Tax, but there's only so much you can pack into a superficial survey text like this. Overall, I think the authors are pretty unbiased and mainstream. (Haven't used the web supplements, so can't comment on that).
Having seen this book evolve over several editions, I can honestly say that the current one represents a distinct improvement, with the new introductory chapter on the gravity model providing some much needed perspective at the start. However, it's not an ideal book to learn trade theory and open econonmy macro from. My favorite (although slightly more rigorous) is "The International Economy" by Kenen. And if you are only interested in trade theory, "International Trade, Theory and Evidence" by Markusen et. al. is superior.
10 of 11 people found the following review helpful.
A very good guide for an undergraduate course
By Ernesto Sepúlveda-Villarreal
I used several times the fifth edition of Krugman and Obstfeld's book to teach International Finance to undergraduates in economics, and I found it comprehensive, understandable and very didactic. True, the book does not follow a rigorous mathematical approach, even less a dynamic one, but I think that is not the authors' intention. On the contrary, they use simple equations, basic graphical analysis, empirical data illustrations and some economic history to show the main issues they want to. And I must say that they clearly succeed in explaining virtually every topic an undergraduate student should know about international economics.
There are several essential topics that should be part of the backbone of a course in international finance, and they are included in this book:
- the asset approach to exchange rates;
- the crucial role of expectations;
- the relationship between money, interest rates and the exchange rates in the short run;
- the long run relationship between prices and exchange rates;
- the internal and external equilibrium for small open economies;
- the interaction of fiscal and monetary policies in an international context;
- inflation bias and other policy formulation problems;
- fixed exchange rates and foreign intervention;
- A description of the evolution of the international monetary system;
- floating exchange rates; macroeconomic policy and international coordination;
- optimum currency areas;
- recent topics on the global capital markets; and
- growth, crisis and reform in developing countries.
In sum, the book by Krugman and Obstfeld is a pretty good undergrad textbook to learn for the first time the core of monetary issues in international economics.
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