International Economics: Theory and Policy

This text aims to reflect the intellectual advances made in the field of international economics by presenting a comprehensive treatment of both the real and monetary sides of the subject. The new edition includes revised discussions of income distribution and greater coverage of the specific-factors model of international trade with intersectorally mobile labour. There is also new material on economies of scale, a more extensive treatment of imperfect competition and increasing returns in the theory of trade, and a discussion of the role of Eastern European countries in the world trading and monetary systems. The treatment of the developing-country debt crisis, including material on debt forgiveness, buybacks and debt-equity swaps has also been updated.