International Economics

Main Issues (Int'l Economics, by Paul R. Krugman & Maurice Obstfeld)
: The subject matter of international economics consists of issues raised by the special problems of economic interaction between sovereign states. Seven main themes are:

1."The Gain from Trade": How does International Trade affect the distribution of income within nations?
2."The Pattern of Trade": the Ricardian model, the HOV model, etc.
3."Protectionism": When is government intervention good for the economy? The relative power of different interest groups
4."The Balance of Payments": Explaining and diagnosing the balance of payments, international capital movements, international monetary policy
5."Exchange Rate Determination": Which system, fixed or floating rates, is better? The role of changing exchange rates
6."International Policy Coordination": How to produce an acceptable degree of harmony among the international trade and monetary policies of different countries?
7."The International Capital Market": Currency fluctuations, National default