{"product_id":"international-economics-australia-and-new-zealand-edition","title":"International Economics, Australia and New Zealand Edition","description":"\u003cp\u003e\u003cb\u003e1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 The Globalization of the World Economy 1\u003c\/p\u003e \u003cp\u003e1.2 International Trade and the Nation’s Standard of Living 4\u003c\/p\u003e \u003cp\u003e1.3 The International Flow of Goods, Services, Labor, and Capital 8\u003c\/p\u003e \u003cp\u003e1.4 International Economic Theories and Policies 12\u003c\/p\u003e \u003cp\u003e1.5 Current International Economic Problems and Challenges 14\u003c\/p\u003e \u003cp\u003e1.6 Organization and Methodology of the Text 16\u003c\/p\u003e \u003cp\u003eSummary 18\u003c\/p\u003e \u003cp\u003eKey Terms 19\u003c\/p\u003e \u003cp\u003eQuestions for Review 19\u003c\/p\u003e \u003cp\u003eProblems 19\u003c\/p\u003e \u003cp\u003eAppendix 20\u003c\/p\u003e \u003cp\u003eA1.1 Basic International Trade Data 20\u003c\/p\u003e \u003cp\u003eA1.2 Sources of Additional International Data and Information 24\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 1 International Trade Theory\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Law of Comparative Advantage 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction 29\u003c\/p\u003e \u003cp\u003e2.2 The Mercantilists’ Views on Trade 30\u003c\/p\u003e \u003cp\u003e2.3 Trade Based on Absolute Advantage: Adam Smith 32\u003c\/p\u003e \u003cp\u003e2.4 Trade Based on Comparative Advantage: David Ricardo 33\u003c\/p\u003e \u003cp\u003e2.5 Comparative Advantage and Opportunity Costs 38\u003c\/p\u003e \u003cp\u003e2.6 The Basis for and the Gains from Trade under Constant Costs 42\u003c\/p\u003e \u003cp\u003e2.7 Empirical Tests of the Ricardian Model 44\u003c\/p\u003e \u003cp\u003eSummary 47\u003c\/p\u003e \u003cp\u003eKey Terms 48\u003c\/p\u003e \u003cp\u003eQuestions for Review 48\u003c\/p\u003e \u003cp\u003eProblems 49\u003c\/p\u003e \u003cp\u003eAppendix 50\u003c\/p\u003e \u003cp\u003eA2.1 Comparative Advantage with More Than Two Commodities 50\u003c\/p\u003e \u003cp\u003eA2.2 Comparative Advantage with More Than Two Nations 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 The Standard Theory of International Trade 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Introduction 53\u003c\/p\u003e \u003cp\u003e3.2 The Production Frontier with Increasing Costs 53\u003c\/p\u003e \u003cp\u003e3.3 Community Indifference Curves 56\u003c\/p\u003e \u003cp\u003e3.4 Equilibrium in Isolation 57\u003c\/p\u003e \u003cp\u003e3.5 The Basis for and the Gains from Trade with Increasing Costs 60\u003c\/p\u003e \u003cp\u003e3.6 Trade Based on Differences in Tastes 67\u003c\/p\u003e \u003cp\u003eSummary 68\u003c\/p\u003e \u003cp\u003eKey Terms 69\u003c\/p\u003e \u003cp\u003eQuestions for Review 69\u003c\/p\u003e \u003cp\u003eProblems 69\u003c\/p\u003e \u003cp\u003eAppendix 70\u003c\/p\u003e \u003cp\u003eA3.1 Production Functions, Isoquants, Isocosts, and Equilibrium 71\u003c\/p\u003e \u003cp\u003eA3.2 Production Theory with Two Nations, Two Commodities, and Two Factors 72\u003c\/p\u003e \u003cp\u003eA3.3 Derivation of the Edgeworth Box Diagram and Production Frontiers 73\u003c\/p\u003e \u003cp\u003eA3.4 Some Important Conclusions 76\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Demand and Supply, Offer Curves, and The Terms of Trade 77\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction 77\u003c\/p\u003e \u003cp\u003e4.2 The Equilibrium-Relative Commodity Price with Trade—Partial Equilibrium Analysis 77\u003c\/p\u003e \u003cp\u003e4.3 Offer Curves 80\u003c\/p\u003e \u003cp\u003e4.4 The Equilibrium-Relative Commodity Price with Trade—General Equilibrium Analysis 83\u003c\/p\u003e \u003cp\u003e4.5 Relationship Between General and Partial Equilibrium Analyses 84\u003c\/p\u003e \u003cp\u003e4.6 The Terms of Trade 86\u003c\/p\u003e \u003cp\u003eSummary 88\u003c\/p\u003e \u003cp\u003eKey Terms 89\u003c\/p\u003e \u003cp\u003eQuestions for Review 89\u003c\/p\u003e \u003cp\u003eProblems 89\u003c\/p\u003e \u003cp\u003eAppendix 90\u003c\/p\u003e \u003cp\u003eA4.1 Derivation of a Trade Indifference Curve for Nation 1 90\u003c\/p\u003e \u003cp\u003eA4.2 Derivation of Nation 1’s Trade Indifference Map 92\u003c\/p\u003e \u003cp\u003eA4.3 Formal Derivation of Nation 1’s Offer Curve 92\u003c\/p\u003e \u003cp\u003eA4.4 Outline of the Formal Derivation of Nation 2’s Offer Curve 94\u003c\/p\u003e \u003cp\u003eA4.5 General Equilibrium of Production, Consumption, and Trade 96\u003c\/p\u003e \u003cp\u003eA4.6 Multiple and Unstable Equilibria 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Factor Endowments and The Heckscher–Ohlin Theory 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 99\u003c\/p\u003e \u003cp\u003e5.2 Assumptions of the Theory 100\u003c\/p\u003e \u003cp\u003e5.3 Factor Intensity, Factor Abundance, and the Shape of the Production Frontier 101\u003c\/p\u003e \u003cp\u003e5.4 Factor Endowments and the Heckscher–Ohlin Theory 107\u003c\/p\u003e \u003cp\u003e5.5 Factor–Price Equalization and Income Distribution 112\u003c\/p\u003e \u003cp\u003e5.6 Empirical Tests of the Heckscher–Ohlin Model 119\u003c\/p\u003e \u003cp\u003eSummary 125\u003c\/p\u003e \u003cp\u003eKey Terms 126\u003c\/p\u003e \u003cp\u003eQuestions for Review 127\u003c\/p\u003e \u003cp\u003eProblems 127\u003c\/p\u003e \u003cp\u003eAppendix 128\u003c\/p\u003e \u003cp\u003eA5.1 The Edgeworth Box Diagram for Nation 1 and Nation 2 129\u003c\/p\u003e \u003cp\u003eA5.2 Relative Factor–Price Equalization 130\u003c\/p\u003e \u003cp\u003eA5.3 Absolute Factor–Price Equalization 132\u003c\/p\u003e \u003cp\u003eA5.4 Effect of Trade on the Short-Run Distribution of Income: The Specific-Factors Model 132\u003c\/p\u003e \u003cp\u003eA5.5 Illustration of Factor–Intensity Reversal 134\u003c\/p\u003e \u003cp\u003eA5.6 The Elasticity of Substitution and Factor–Intensity Reversal 136\u003c\/p\u003e \u003cp\u003eA5.7 Empirical Tests of Factor–Intensity Reversal 137\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Economies of Scale, Imperfect Competition, and International Trade 138\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction 138\u003c\/p\u003e \u003cp\u003e6.2 The Heckscher–Ohlin Model and New Trade Theories 138\u003c\/p\u003e \u003cp\u003e6.3 Economies of Scale and International Trade 140\u003c\/p\u003e \u003cp\u003e6.4 Imperfect Competition and International Trade 143\u003c\/p\u003e \u003cp\u003e6.5 Trade Based on Dynamic Technological Differences 152\u003c\/p\u003e \u003cp\u003e6.6 Costs of Transportation, Environmental Standards, and International Trade 156\u003c\/p\u003e \u003cp\u003eSummary 160\u003c\/p\u003e \u003cp\u003eKey Terms 161\u003c\/p\u003e \u003cp\u003eQuestions for Review 161\u003c\/p\u003e \u003cp\u003eProblems 162\u003c\/p\u003e \u003cp\u003eAppendix 162\u003c\/p\u003e \u003cp\u003eA6.1 External Economies and the Pattern of Trade 162\u003c\/p\u003e \u003cp\u003eA6.2 Dynamic External Economies and Specialization 164\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Economic Growth and International Trade 166\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Introduction 166\u003c\/p\u003e \u003cp\u003e7.2 Growth of Factors of Production 167\u003c\/p\u003e \u003cp\u003e7.3 Technical Progress 169\u003c\/p\u003e \u003cp\u003e7.4 Growth and Trade: The Small-Country Case 172\u003c\/p\u003e \u003cp\u003e7.5 Growth and Trade: The Large-Country Case 177\u003c\/p\u003e \u003cp\u003e7.6 Growth, Change in Tastes, and Trade in Both Nations 182\u003c\/p\u003e \u003cp\u003eSummary 184\u003c\/p\u003e \u003cp\u003eKey Terms 185\u003c\/p\u003e \u003cp\u003eQuestions for Review 185\u003c\/p\u003e \u003cp\u003eProblems 186\u003c\/p\u003e \u003cp\u003eAppendix 187\u003c\/p\u003e \u003cp\u003eA7.1 Formal Proof of the Rybczynski Theorem 187\u003c\/p\u003e \u003cp\u003eA7.2 Growth with Factor Immobility 189\u003c\/p\u003e \u003cp\u003eA7.3 Graphical Analysis of Hicksian Technical Progress 190\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 2 International Trade Policy\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Trade Restrictions: Tariffs 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Introduction 195\u003c\/p\u003e \u003cp\u003e8.2 Partial Equilibrium Analysis of a Tariff 197\u003c\/p\u003e \u003cp\u003e8.3 The Theory of Tariff Structure 203\u003c\/p\u003e \u003cp\u003e8.4 General Equilibrium Analysis of a Tariff in a Small Country 207\u003c\/p\u003e \u003cp\u003e8.5 General Equilibrium Analysis of a Tariff in a Large Country 210\u003c\/p\u003e \u003cp\u003e8.6 The Optimum Tariff 212\u003c\/p\u003e \u003cp\u003eSummary 213\u003c\/p\u003e \u003cp\u003eKey Terms 214\u003c\/p\u003e \u003cp\u003eQuestions for Review 214\u003c\/p\u003e \u003cp\u003eProblems 215\u003c\/p\u003e \u003cp\u003eAppendix 216\u003c\/p\u003e \u003cp\u003eA8.1 Partial Equilibrium Effects of a Tariff in a Large Nation 216\u003c\/p\u003e \u003cp\u003eA8.2 Derivation of the Formula for the Rate of Effective Protection 218\u003c\/p\u003e \u003cp\u003eA8.3 The Stolper–Samuelson Theorem Graphically 219\u003c\/p\u003e \u003cp\u003eA8.4 Exception to the Stolper–Samuelson Theorem—The Metzler Paradox 221\u003c\/p\u003e \u003cp\u003eA8.5 Short-Run Effect of a Tariff on Factors’ Income 222\u003c\/p\u003e \u003cp\u003eA8.6 Measurement of the Optimum Tariff 224\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Nontariff Trade Barriers and the New Protectionism 226\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction 226\u003c\/p\u003e \u003cp\u003e9.2 Import Quotas 226\u003c\/p\u003e \u003cp\u003e9.3 Other Nontariff Barriers and the New Protectionism 229\u003c\/p\u003e \u003cp\u003e9.4 The Political Economy of Protectionism 238\u003c\/p\u003e \u003cp\u003e9.5 Strategic Trade and Industrial Policies 242\u003c\/p\u003e \u003cp\u003e9.6 History of U.S. Commercial Policy 246\u003c\/p\u003e \u003cp\u003e9.7 The Uruguay Round, the Failed Doha Round, and the Outstanding Trade Problems 250\u003c\/p\u003e \u003cp\u003eSummary 255\u003c\/p\u003e \u003cp\u003eKey Terms 256\u003c\/p\u003e \u003cp\u003eQuestions for Review 257\u003c\/p\u003e \u003cp\u003eProblems 257\u003c\/p\u003e \u003cp\u003eAppendix 258\u003c\/p\u003e \u003cp\u003eA9.1 Centralized Cartels 258\u003c\/p\u003e \u003cp\u003eA9.2 International Price Discrimination 259\u003c\/p\u003e \u003cp\u003eA9.3 Tariffs, Subsidies, and Domestic Goals 260\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Economic Integration: Customs Unions and Free Trade Areas 262\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Introduction 262\u003c\/p\u003e \u003cp\u003e10.2 Trade-Creating Customs Union 263\u003c\/p\u003e \u003cp\u003e10.3 Trade-Diverting Customs Unions 264\u003c\/p\u003e \u003cp\u003e10.4 The Theory of the Second Best and Other Static Welfare Effects of Customs Unions 266\u003c\/p\u003e \u003cp\u003e10.5 Dynamic Benefits from Customs Unions 268\u003c\/p\u003e \u003cp\u003e10.6 History of Attempts at Economic Integration 269\u003c\/p\u003e \u003cp\u003eSummary 280\u003c\/p\u003e \u003cp\u003eKey Terms 281\u003c\/p\u003e \u003cp\u003eQuestions for Review 281\u003c\/p\u003e \u003cp\u003eProblems 281\u003c\/p\u003e \u003cp\u003eAppendix 282\u003c\/p\u003e \u003cp\u003eA10.1 General Equilibrium Analysis of the Static Effects of a Trade-Diverting Customs Union 282\u003c\/p\u003e \u003cp\u003eA10.2 Regional Trade Agreements and Other Groups Around the World in June 2018 284\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 International Trade and Economic Development 289\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Introduction 289\u003c\/p\u003e \u003cp\u003e11.2 The Importance of Trade to Development 290\u003c\/p\u003e \u003cp\u003e11.3 The Terms of Trade and Economic Development 295\u003c\/p\u003e \u003cp\u003e11.4 Export Instability and Economic Development 300\u003c\/p\u003e \u003cp\u003e11.5 Import Substitution versus Export Orientation 303\u003c\/p\u003e \u003cp\u003e11.6 Current Problems Facing Developing Countries 307\u003c\/p\u003e \u003cp\u003eSummary 313\u003c\/p\u003e \u003cp\u003eKey Terms 313\u003c\/p\u003e \u003cp\u003eQuestions for Review 314\u003c\/p\u003e \u003cp\u003eProblems 314\u003c\/p\u003e \u003cp\u003eAppendix 315\u003c\/p\u003e \u003cp\u003eA11.1 Income Inequalities by Traditional and Purchasing-Power Parity (PPP) Measures 315\u003c\/p\u003e \u003cp\u003eA11.2 The World by Income 316\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 International Resource Movements and Multinational Corporations 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Introduction 319\u003c\/p\u003e \u003cp\u003e12.2 Some Data on International Capital Flows 320\u003c\/p\u003e \u003cp\u003e12.3 Motives for International Capital Flows 323\u003c\/p\u003e \u003cp\u003e12.4 Welfare Effects of International Capital Flows 326\u003c\/p\u003e \u003cp\u003e12.5 Multinational Corporations 329\u003c\/p\u003e \u003cp\u003e12.6 Motives for and Welfare Effects of International Labor Migration 334\u003c\/p\u003e \u003cp\u003eSummary 338\u003c\/p\u003e \u003cp\u003eKey Terms 339\u003c\/p\u003e \u003cp\u003eQuestions for Review 339\u003c\/p\u003e \u003cp\u003eProblems 339\u003c\/p\u003e \u003cp\u003eAppendix 340\u003c\/p\u003e \u003cp\u003eA12.1 The Transfer Problem 340\u003c\/p\u003e \u003cp\u003eA12.2 International Trade, Financial and Aid Flows, and Migration 341\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 3 The Balance of Payments, Foreign Exchange Markets, and Exchange Rates\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Balance of Payments 347\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Introduction 347\u003c\/p\u003e \u003cp\u003e13.2 Balance of Payments Accounting 348\u003c\/p\u003e \u003cp\u003e13.3 The International Transactions of the United States 350\u003c\/p\u003e \u003cp\u003e13.4 Accounting Balances and the U.S. Balance of Payments 353\u003c\/p\u003e \u003cp\u003e13.5 The Postwar Balance of Payments of the United States 353\u003c\/p\u003e \u003cp\u003e13.6 The Importance of the Current Account 356\u003c\/p\u003e \u003cp\u003e13.7 The International Investment Position of the United States 357\u003c\/p\u003e \u003cp\u003eSummary 360\u003c\/p\u003e \u003cp\u003eKey Terms 361\u003c\/p\u003e \u003cp\u003eQuestions for Review 361\u003c\/p\u003e \u003cp\u003eProblems 362\u003c\/p\u003e \u003cp\u003eAppendix 362\u003c\/p\u003e \u003cp\u003eA13.1 The IMF Method of Reporting International Transactions 362\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Foreign Exchange Markets and Exchange Rates 366\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Introduction 366\u003c\/p\u003e \u003cp\u003e14.2 Functions of the Foreign Exchange Markets 366\u003c\/p\u003e \u003cp\u003e14.3 Foreign Exchange Rates 370\u003c\/p\u003e \u003cp\u003e14.4 Spot and Forward Rates, Currency Swaps, Futures, and Options 376\u003c\/p\u003e \u003cp\u003e14.5 Foreign Exchange Risks, Hedging, and Speculation 379\u003c\/p\u003e \u003cp\u003e14.6 Interest Arbitrage and the Efficiency of Foreign Exchange Markets 385\u003c\/p\u003e \u003cp\u003e14.7 Eurocurrency or Offshore Financial Markets 392\u003c\/p\u003e \u003cp\u003eSummary 396\u003c\/p\u003e \u003cp\u003eKey Terms 397\u003c\/p\u003e \u003cp\u003eQuestions for Review 398\u003c\/p\u003e \u003cp\u003eProblems 398\u003c\/p\u003e \u003cp\u003eAppendix 399\u003c\/p\u003e \u003cp\u003eA14.1 Derivation of the Formula for the Covered Interest Arbitrage Margin 399\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Exchange Rate Determination 401\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Introduction 401\u003c\/p\u003e \u003cp\u003e15.2 Purchasing-Power Parity Theory 402\u003c\/p\u003e \u003cp\u003e15.3 Monetary Approach to the Balance of Payments and Exchange Rates 407\u003c\/p\u003e \u003cp\u003e15.4 Portfolio Balance Model and Exchange Rates 416\u003c\/p\u003e \u003cp\u003e15.5 Exchange Rate Dynamics 421\u003c\/p\u003e \u003cp\u003e15.6 Empirical Tests of the Monetary and Portfolio Balance Models and Exchange Rate Forecasting 425\u003c\/p\u003e \u003cp\u003eSummary 428\u003c\/p\u003e \u003cp\u003eKey Terms 429\u003c\/p\u003e \u003cp\u003eQuestions for Review 429\u003c\/p\u003e \u003cp\u003eProblems 429\u003c\/p\u003e \u003cp\u003eAppendix 431\u003c\/p\u003e \u003cp\u003eA15.1 Formal Monetary Approach Model 431\u003c\/p\u003e \u003cp\u003eA15.2 Formal Portfolio Balance Model and Exchange Rates 433\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 4 Open-Economy Macroeconomics and the International Monetary System\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates 437\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Introduction 437\u003c\/p\u003e \u003cp\u003e16.2 Adjustment with Flexible Exchange Rates 438\u003c\/p\u003e \u003cp\u003e16.3 Effect of Exchange Rate Changes on Domestic Prices and the Terms of Trade 441\u003c\/p\u003e \u003cp\u003e16.4 Stability of Foreign Exchange Markets 443\u003c\/p\u003e \u003cp\u003e16.5 Elasticities in the Real World 445\u003c\/p\u003e \u003cp\u003e16.6 Adjustment under the Gold Standard 454\u003c\/p\u003e \u003cp\u003eSummary 456\u003c\/p\u003e \u003cp\u003eKey Terms 457\u003c\/p\u003e \u003cp\u003eQuestions for Review 457\u003c\/p\u003e \u003cp\u003eProblems 458\u003c\/p\u003e \u003cp\u003eAppendix 458\u003c\/p\u003e \u003cp\u003eA16.1 The Effect of Exchange Rate Changes on Domestic Prices 458\u003c\/p\u003e \u003cp\u003eA16.2 Derivation of the Marshall–Lerner Condition 460\u003c\/p\u003e \u003cp\u003eA16.3 Derivation of the Gold Points and Gold Flows Under the Gold Standard 462\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 The Income Adjustment Mechanism and Synthesis of Automatic Adjustments 464\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Introduction 464\u003c\/p\u003e \u003cp\u003e17.2 Income Determination in a Closed Economy 465\u003c\/p\u003e \u003cp\u003e17.3 Income Determination in a Small Open Economy 468\u003c\/p\u003e \u003cp\u003e17.4 Foreign Repercussions 476\u003c\/p\u003e \u003cp\u003e17.5 Absorption Approach 479\u003c\/p\u003e \u003cp\u003e17.6 Monetary Adjustments and Synthesis of the Automatic Adjustments 481\u003c\/p\u003e \u003cp\u003eSummary 484\u003c\/p\u003e \u003cp\u003eKey Terms 485\u003c\/p\u003e \u003cp\u003eQuestions for Review 485\u003c\/p\u003e \u003cp\u003eProblems 486\u003c\/p\u003e \u003cp\u003eAppendix 487\u003c\/p\u003e \u003cp\u003eA17.1 Derivation of Foreign Trade Multipliers with Foreign Repercussions 487\u003c\/p\u003e \u003cp\u003eA17.2 The Transfer Problem Once Again 489\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Open-Economy Macroeconomics: Adjustment Policies 491\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Introduction 491\u003c\/p\u003e \u003cp\u003e18.2 Internal and External Balance with Expenditure-Changing and Expenditure-Switching Policies 494\u003c\/p\u003e \u003cp\u003e18.3 Equilibrium in the Goods Market, in the Money Market, and in the Balance of Payments 496\u003c\/p\u003e \u003cp\u003e18.4 Fiscal and Monetary Policies for Internal and External Balance with Fixed Exchange Rates 498\u003c\/p\u003e \u003cp\u003e18.5 The \u003ci\u003eIS\u003c\/i\u003e–\u003ci\u003eLM\u003c\/i\u003e–\u003ci\u003eBP \u003c\/i\u003eModel with Flexible Exchange Rates 506\u003c\/p\u003e \u003cp\u003e18.6 Policy Mix and Price Changes 510\u003c\/p\u003e \u003cp\u003e18.7 Direct Controls 516\u003c\/p\u003e \u003cp\u003eSummary 519\u003c\/p\u003e \u003cp\u003eKey Terms 520\u003c\/p\u003e \u003cp\u003eQuestions for Review 520\u003c\/p\u003e \u003cp\u003eProblems 521\u003c\/p\u003e \u003cp\u003eAppendix 522\u003c\/p\u003e \u003cp\u003eA18.1 Derivation of the \u003ci\u003eIS \u003c\/i\u003eCurve 522\u003c\/p\u003e \u003cp\u003eA18.2 Derivation of the \u003ci\u003eLM \u003c\/i\u003eCurve 524\u003c\/p\u003e \u003cp\u003eA18.3 Derivation of the \u003ci\u003eBP \u003c\/i\u003eCurve 525\u003c\/p\u003e \u003cp\u003eA18.4 Mathematical Summary 527\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply 528\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e19.1 Introduction 528\u003c\/p\u003e \u003cp\u003e19.2 Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed Economy 528\u003c\/p\u003e \u003cp\u003e19.3 Aggregate Demand in an Open Economy Under Fixed and Flexible Exchange Rates 534\u003c\/p\u003e \u003cp\u003e19.4 Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demand in Open Economies with Flexible Prices 536\u003c\/p\u003e \u003cp\u003e19.5 Effect of Fiscal and Monetary Policies in Open Economies with Flexible Prices 539\u003c\/p\u003e \u003cp\u003e19.6 Macroeconomic Policies to Stimulate Growth and Adjust to Supply Shocks 544\u003c\/p\u003e \u003cp\u003eSummary 549\u003c\/p\u003e \u003cp\u003eKey Terms 550\u003c\/p\u003e \u003cp\u003eQuestions for Review 550\u003c\/p\u003e \u003cp\u003eProblems 551\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Flexible Versus Fixed Exchange Rates, The European Monetary System, and Macroeconomic Policy Coordination 552\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Introduction 552\u003c\/p\u003e \u003cp\u003e20.2 The Case for Flexible Exchange Rates 553\u003c\/p\u003e \u003cp\u003e20.3 The Case for Fixed Exchange Rates 555\u003c\/p\u003e \u003cp\u003e20.4 Optimum Currency Areas, the European Monetary System, and the European Monetary Union 562\u003c\/p\u003e \u003cp\u003e20.5 Currency Boards Arrangements and Dollarization 571\u003c\/p\u003e \u003cp\u003e20.6 Exchange Rate Bands, Adjustable Pegs, Crawling Pegs, and Managed Floating 573\u003c\/p\u003e \u003cp\u003e20.7 International Macroeconomic Policy Coordination 578\u003c\/p\u003e \u003cp\u003eSummary 580\u003c\/p\u003e \u003cp\u003eKey Terms 581\u003c\/p\u003e \u003cp\u003eQuestions for Review 581\u003c\/p\u003e \u003cp\u003eProblems 581\u003c\/p\u003e \u003cp\u003eAppendix 582\u003c\/p\u003e \u003cp\u003eA20.1 Exchange Rate Arrangements 582\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 The International Monetary System: Past, Present, and Future 586\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21.1 Introduction 586\u003c\/p\u003e \u003cp\u003e21.2 The Gold Standard and the Interwar Experience 587\u003c\/p\u003e \u003cp\u003e21.3 The Bretton Woods System 590\u003c\/p\u003e \u003cp\u003e21.4 Operation and Evolution of the Bretton Woods System 592\u003c\/p\u003e \u003cp\u003e21.5 U.S. Balance-of-Payments Deficits and Collapse of the Bretton Woods System 596\u003c\/p\u003e \u003cp\u003e21.6 The International Monetary System: Present and Future 599\u003c\/p\u003e \u003cp\u003eSummary 615\u003c\/p\u003e \u003cp\u003eKey Terms 616\u003c\/p\u003e \u003cp\u003eQuestions for Review 617\u003c\/p\u003e \u003cp\u003eProblems 617\u003c\/p\u003e \u003cp\u003eAppendix 618\u003c\/p\u003e \u003cp\u003eA21.1 International Reserves: 1950–2018 618\u003c\/p\u003e \u003cp\u003eGlossary of Key Terms G-1\u003c\/p\u003e \u003cp\u003eName Index I-1\u003c\/p\u003e \u003cp\u003eSubject Index I-5\u003c\/p\u003e","brand":"Dominick Salvatore","offers":[{"title":"Default Title","offer_id":42838973415485,"sku":"9781119667513","price":171.86,"currency_code":"AUD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0597\/7689\/2989\/files\/9781119667513_66b224b6-b23b-4609-adc5-5f25167c3528.jpg?v=1766950943","url":"https:\/\/www.palmleaf.com.au\/products\/international-economics-australia-and-new-zealand-edition","provider":"Palmleaf","version":"1.0","type":"link"}