Economics

'The European adaptation of Krugman provides an outstanding introduction to Economics. To a very high standard this text allows students to gain a firm understanding of economic ideas and principles. At the same time it brings the subject alive through topical and up-to-date examples and illustrations relevant to the contemporary European economy.' Andrew Healey, University of Swansea, UK 'The applications using real world examples and the clarity of exposition make this the most accessible introductory text in economics around at the moment.' Stephen Smith, London Metropolitan University, UK

PAUL KRUGMAN is Professor of Economics at Princeton University, where he regularly teaches the principles course. He received his BA from Yale and his PhD from MIT. Prior to his current position, he taught at Yale, Stanford, and MIT. He also spent a year on the staff of the Council of Economic Advisers in 1982-1983. His research is mainly in the area of international trade, where he is one of the founders of the "new trade theory," which focuses on increasing returns and imperfect competition. He also works in international finance, with a concentration in currency crises. In 1991, Krugman received the American Economic Association's John Bates Clark medal. In addition to his teaching and academic research, Krugman writes extensively for nontechnical audiences. Krugman is a regular op-ed columnist for the New York Times. His latest trade book is a best-selling collection of his Times articles entitled The Great Unraveling: Losing Our Way in the New Century. His earlier books, Peddling Prosperity and The Age of Diminished Expectations, have become modern classics. ROBIN WELLS is Researcher in Economics at Princeton University, where she regularly teaches undergraduate courses. She received her BA from the University of Chicago and her PhD from the University of California at Berkeley; she then did postdoctoral work at MIT. She has taught at the University of Michigan, the University of Southampton (United Kingdom), Stanford, and MIT. Her teaching and research focus on the theory of organizations and incentives. She writes regularly for academic journals. KATHRYN GRADDY is Professor of Applied Economics at the University of Oxford and a Fellow of Exeter College, Oxford, where she regularly teaches introductory microeconomics and macroeconomics to undergraduate students. She received her BA from Tulane University, her MBA from Columbia University, and her PhD from Princeton University. She came to Oxford in 1993 as a Junior Research Fellow of Jesus College, Oxford, and from 1995 to 1998 taught Managerial Economics at the London Business School and has therefore lectured in the UK for over 10 years. Her current research focuses on the economics of art auctions.

WHAT IS ECONOMICS? Introduction: The Ordinary Business of Life First Principles Economic Models: Trade-offs and Trade Appendix: Graphs in Economics SUPPLY AND DEMAND Supply and Demand Price and Quantity Controls Elasticity INDIVIDUALS AND MARKETS Consumer and Producer Surplus Making Decisions THE PRODUCER Behind the Supply Curve: Inputs and Costs Perfect Competition and the Supply Curve THE CONSUMER The Rational Consumer Consumer Preferences and Consumer Choice MARKETS AND EFFICIENCY Factor Markets and the Distribution of Income Appendix: Indifference Curve Analysis of Labour Supply Efficiency and Equity MARKET STRUCTURE BEYOND PERFECT COMPETITION Monopoly Oligopoly Monopolistic Competition and Product Differentiation EXTENDING MARKET BOUNDARIES International Trade Uncertainty, Risk, and Private Information MICROECONOMICS AND PUBLIC POLICY Externalities Public Goods and Common Resources Taxes, Government Spending and Income Distribution NEW DIRECTIONS FOR MARKETS Technology, Information Goods and Network Externalities INTRODUCTION TO MACROECONOMICS Macroeconomics: The Big Picture Tracking the Macroeconomy THE ECONOMY IN THE LONG RUN Long - Run Economic Growth Savings, Investment Spending, and the Financial System SHORT RUN ECONOMIC FLUCTUATIONS Aggregate Supply and Aggregate Demand Income and Expenditure Appendix: Deriving the Multiplier Algebraically Fiscal Policy Appendix: Taxes and the Multiplier Money and Banking Monetary Policy THE SUPPLY SIDE AND THE MEDIUM RUN Labour markets, unemployment and inflation Inflation, Disinflation, and Deflation THE OPEN ECONOMY Open -Economy Macroeconomics EVENTS AND IDEAS The Making of Modern Macroeconomics