International Finance: Theory and Policy, Global Edition

Paul Krugman, recipient of the 2008 NobelMemorial Prize in Economic Sciences, taught at Princeton University for 14years. In 2015, he joined the faculty of the Graduate Center of the CityUniversity of New York, associated with the Luxembourg Income Study, whichtracks and analyzes income inequality around the world. He received his BA fromYale and his PhD from MIT. Before Princeton, he taught at Yale, Stanford, andMIT. He also spent a year on the staff of the Council of Economic Advisers in1982-1983. His research has included trailblazing work on international trade,economic geography, and currency crises. In 1991, Krugman received the AmericanEconomic Association's John Bates Clark medal. In addition to his teaching andacademic research, Krugman writes extensively for nontechnical audiences. He isa regular op-ed columnist for the New York Times. Maurice Obstfeld is the Class of 1958Professor of Economics at UC Berkeley. He joined Berkeley in 1989 as aprofessor, following appointments at Columbia (1979-1986) and the University ofPennsylvania (1986-1989). He was also a visiting professor at Harvard between1989 and 1991. In 2014-2015 he was a Member of President Obama's Council ofEconomic Advisers, and from 2015-2018 he served as chief economist at theInternational Monetary Fund. Before that, he served as an honorary adviser tothe Bank of Japan's Institute of Monetary and Economic Studies. Among ProfessorObstfeld's honors are the Frank Graham Lecture at Princeton, the inauguralMundell-Fleming Lecture of the International Monetary Fund, the Bernhard HarmsPrize and Lecture of the Kiel Institute for World Economy, the L. K. JhaMemorial Lecture at the Reserve Bank of India, and the Richard T. Ely Lectureof the American Economic Association. Professor Obstfeld is a Fellow of theEconometric Society and the American Academy of Arts and Sciences. He is activeas a research fellow of the Centre for Economic Policy Research and a researchassociate of the National Bureau of Economic Research. Most recently, he hasjoined the Peterson Institute for International Economics in Washington, DC, asa nonresident senior fellow. Marc Melitz is the David A. Wells Professor ofPolitical Economy at Harvard University. He holds a BA from Haverford College(1989), an MSBA from the Robert Smith School of Business (1992), and a PhD fromthe University of Michigan (2000). He is a fellow of the Econometric Societyand is affiliated with the National Bureau of Economic Research (NBER), theCentre for Economic Policy Research (CEPR), CESifo, and the Kiel Institute forthe World Economy. His broad research interests are in international trade andinvestment. More specifically, he studies producer-level responses toglobalization and their implications for aggregate trade and investmentpatterns. His research has been funded by the Sloan Foundation and by the NSF.

1. Introduction PART ONE: EXCHANGE RATES ANDOPEN-ECONOMY MACROECONOMICS 2. NationalIncome Accounting and the Balance of Payments 3. Exchange Rates and the Foreign Exchange Market: An Asset Approach 4. Money, Interest Rates, and Exchange Rates 5. Price Levels and the Exchange Rate in the Long Run 6. Output and the Exchange Rate in the Short Run 7. Fixed Exchange Rates and Foreign Exchange Intervention PARTTWO: INTERNATIONAL MACROECONOMIC POLICY 8.International Monetary Systems: A Historical Overview 9. Financial Globalization: Opportunity and Crisis 10. Optimum Currency Areas and the Euro 11. Developing Countries: Growth, Crisis, and Reform