International Economics: Theory and Policy (6th Edition) (Hardcover)

~ Paul R. Krugman (Author), (Author)
Key Phrases: international trade theory, trade policy, imperfect competition, United States, New York, European Union (more...)

Editorial Reviews

Product Description

International Economics, the best-selling textbook in the field, is written by two of the world's preeminent economists. Both the real trade portion of the book and the monetary portion are divided into a core of chapters focused on theory, followed by chapters applying the theory to major policy questions, past and current. The Sixth Edition has been throughly revised to reflect the changes of today's global economic landscape, including the unprecedented expansion of globalization, the increasingly crucial nature of international economic relations, the gains from trade, and recent anti-globalization controversies such as the continuing debate over the optimal level of trade. Consistent with previous editions, the text presents an integrated treatment of the Ricardian model, specific factors, factor endowments, and imperfect competition models of trade, along with in-depth analysis of empirical evidence. It covers the effects and causes of trade policy, including strategic trade policy and the income-distribution effects of trade.The book also provides a unified model of open-economy macroeconomics, based on an asset-market approach to exchange rate determination with a central role for expectations.

About the Author

Paul Krugman earned his Ph.D. in economics from MIT, and has since taught at some of United States' most prestigious universities, including Yale, Stanford, MIT, and currently, Princeton University.

Krugman spent a year in the early 1980s working in the White House for the Council of Economic Advisors. He has written and edited several hundred articles and 18 internationally acclaimed books. Notably, he is recognized as a co-founder of the "new trade theory," which has been an important contribution to the fields of economics and finance.

In recognition of his achievements, Krugman was awarded the John Bates Clark medal in 1991.

Maurice Obstfeld specialized in mathematics in Cambridge University and went on to MIT, where he attained his Ph.D. in economics. He has since held faculty positions at Columbia University and the University of Pennsylvania and currently, is the class of 1958 Professor of Economics at the University of California, Berkeley.

Obstfeld has authored numerous articles and highly influential books. In view of his prominence in the fields of economics and finance, he has served as consultant for the World Bank, as participant in the European Commission Study Group on the impact of the Euro on capital markets, and most recently as the honorary advisor for the Institute of Economic and Monetary Studies, Bank of Japan.

Product Details

• Hardcover: 784 pages
• Publisher: Addison Wesley; 6 edition (July 26, 2002)
• Language: English
• ISBN-10: 0201770377
• ISBN-13: 978-0201770377
• Product Dimensions: 9.7 x 7.4 x 1.3 inches
• Shipping Weight: 3 pounds
• Average Customer Review: 3.7 out of 5 stars  See all reviews (18 customer reviews)
• Amazon.com Sales Rank: #251,003 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

56 of 62 people found the following review helpful:

1.0 out of 5 stars Not What I've Come to Expect from Krugman, April 3, 2005

By	TitaniumDreads "http://blog.titaniumdreads.com" (Cambridge, MA United States) - See all my reviews

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.

43 of 49 people found the following review helpful:

5.0 out of 5 stars The book to start with in International Economics, May 4, 1999

By	L. Battaglini "mauouo" (IT) - See all my reviews (REAL NAME)

This review is from: International Economics: Theory and Policy (Hardcover)

For anybody - but especially students - interested in exploring the subject of international economics, this is the book to start with. It is illuminating (as it is always the case with Krugman's writings) on otherwise technical concepts as comparative advantage, trade policy and exchange rate determinants, but it is also entertaining, with its "reality checks". The first part of the book deals with the "real" economy, the second part with monetary international economics. It will save you a lot of time to begin your study of the field with this book. If you have had previous experiences with international economics but either forgot most about it or had trouble making sense of the whole thing you will probably get a good grasp of the subject after reading this manual. The bibliography is accurate and rich, the exercises won't give you an headache. Readers with some background in economics are most likely to take full advantage from the book. For the others, well, some introductory economics will be necessary. Once you've read this book, you can continue more safely your studies/readings on international economics.

15 of 17 people found the following review helpful:

4.0 out of 5 stars international economics, January 16, 2000

By	Soeren Puerschel (Tuebingen, Germany) - See all my reviews

This review is from: International Economics: Theory and Policy (Hardcover)

This book describes in a very detailed way all the general theories of economics concerning trade. It is very well done as there are many examples and it is optically inspiring. Your eyes won't get tired too quickly, as the layout is done fine. The content of the book is fine, a good book for students of economics, even though it is advisable to read more down the line. But for the overview of a topic it serves allright.