International Economics, 9th Edition

In the ninth edition of International Economics: Theory & Policy, Krugman et al. has been thoroughly updated in terms of content and extensively revised chapters. These revisions respond both to users’ suggestions and to some important developments on the theoretical and practical sides of international economics.

The most far-reaching changes to the ninth edition are the following:

• The specific factors model of trade is back!  In response to popular demand, chapter 4 "Specific Factors and Income Distribution in the Short Run" reinstates the specific factors model of trade.  This model provides a simple and intuitively appealing account of why countries trade and for illustrating how trade creates clear losers as well as winners.  Chapter 4 also covers international labor movements and immigration within a theoretical framework.
• Expanded coverage of the effects on wage inequality of North-South trade, of technological change, and of outsourcing in Chapter 5, "Resources and Trade:  The Heckscher-Ohlin Model".
• NEW!  Coverage of important recent research advances on the role of firms in international trade can be found in Chapter 8, "Firms in the Global Economy:  Export Decisions, Outsourcing, and Multinational Enterprises.  Among the topics featured are new models with performance differences across firms, discussion of how economic integration generates both winners and losers among firms in the same industry, and the productivity gains from economic integration.  The chapter also develops models of multinational firms and of outsourcing.
• Updated treatment of the effects of trade restrictions on United States firms can be found in Chapter 9, "The Instruments of Trade Policy"
• The recommendations in the sixth edition of the IMF's Balance of Payments and International Investment Position Manual has been reflected in this ninth edition!  You will find these recommendations in Krugman et al's thoroughly revised Chapter 13, "National Income Accounting and the Foreign Exchange Market".  These conventions set forth by the IMF have been widely adopted internationally and will be phased in over the next few years in the official United States statistics on international transations.
• Would you like to introduce the topic of "unconventional" monetary policies in your international economics class?  NEW!  Krugman et al's Chapter 18, "Fixed Exchange Rates and Foreign Exchange Intervention" now integrates the case of the liquidity trap into the development of the DD-AA model, thereby allowing the instructor to introduce the topic of "unconventional" monetary policies.
• NEW coverage of the macroeconomic antecedents and consequences of the global financial crisis of 2007-2009!  In chapter 19, "International Monetary Systems:  An Historical Overview," Krugman et al merged streamlined versions of prior chapters 18 & 19, which covered, respectively, pre-1973 and post-1973 international monetary history.  This chapter takes the open-economy trilemma, previously introduced in Chapter 21, as a guiding framework for understanding the evolution of the international monetary system since the late 19th century.  It also features coverage of the macroeconomic antecedents and consequences of the global financial crisis of 2007-2009.
• Extended discussion of shadow banking systems, moral hazard, and financial aspects of the 2007-2009 global crisis can be found in Chapter 21, "Financial Globalization:  Opportunity and Crisis"

 One of the most current International Economics texts on the market today!

• International Economics:  Theory & Policy, Krugman et al maintains its status as the most current International Economics book on the market today by:
  • Examining linkages between trade and unemployment
  • Reviewing recent trends in foreign direct investment.
  • Discussing the carry trade in light of uncovered interest parity.
  • Describing the euro zone soverign debt crisis that started in 2010.
  • Explaining how the financial crisis of 2007-2009 gave rise to a global "dollar shortage," leading   central banks to establish an unprecedented network of currency swap lines.