Introduction A Standard Model of Trading Economy International Transfers of Income: Shifting the RD Curve Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD Summary Appendix: Representing International Equilibrium with Offer Curves
Chapter Organization Introduction The Case for Free Trade National Welfare Arguments against Free Trade Income Distribution and Trade Policy International Negotiations and Trade Policy Summary Appendix: Proving that the Optimum Tariff is Positive
Chapter Organization Introduction Exchange Rates and International Transactions The Foreign Exchange Market The Demand for Foreign Currency Assets Equilibrium in the Foreign Exchange Market Interest Rates, Expectations, and Equilibrium Summary
Macroeconomic Policy Goals in an Open Economy International Macroeconomic Policy Under the Gold Standard, 1870-1914 The Interwar Years, 1918-1939 The Bretton Woods System and the International Monetary Fund
Chapter Organization How the European Single Currency Evolved The Euro and Economic Policy in the Euro Zone The Theory of Optimum Currency Areas The Future of EMU Summary
The Case for Floating Exchange rates The Case Against Floating Exchange Rates Macroeconomic Interdependence Under a Floating rate What Has been Learned Since 1973? Are Fixed Exchange Rates Even and Option for mostCountries?
Determinants of Aggregate Demand in an Open Economy The Equation of Aggregate Demand How Output Is Determined in the Short run Output Market Equilibrium in the Sort run: The DD Schedul Asset Market Equilibrium in the Short Run: The AA Schedule
Chapter Organization =Introduction The Law of One Price Purchasing Power Parity A Long-Run Exchange Rate Model Based on PPP Empirical Evidence on PPP and the Law of One Price Explaining the Problems with PPP
