Economics [First Edition] 9780321391582, 1292079207, 9781292079202, 9780321383952, 0321383958, 0321391586

Table of contents :
Cover......Page 1
Title Page......Page 5
Copyright......Page 6
Contents......Page 13
Chapter 1: The Principles and Practice of Economics......Page 42
Economic Agents and Economic Resources......Page 43
Definition of Economics......Page 44
Positive Economics and Normative Economics......Page 45
1.2 Three Principles of Economics......Page 46
1.3 The First Principle of Economics: Optimization......Page 47
Opportunity Cost......Page 48
Cost-Benefit Analysis......Page 49
Evidence-Based Economics: Is Facebook free?......Page 50
1.4 The Second Principle of Economics: Equilibrium......Page 53
1.5 The Third Principle of Economics: Empiricism......Page 54
1.6 Is Economics Good for You?......Page 55
Key Terms......Page 56
Problems......Page 57
Chapter 2: Economic Methods and Economic Questions......Page 60
Models and Data......Page 61
An Economic Model......Page 63
Evidence-Based Economics: How much more do workers with a college education earn?......Page 64
Argument by Anecdote......Page 65
The Red Ad Campaign Blues......Page 66
Causation versus Correlation......Page 67
Experimental Economics and Natural Experiments......Page 68
Evidence-Based Economics: How much do wages increase when an individual is compelled by law to get an extra year of schooling?......Page 69
2.3 Economic Questions and Answers......Page 70
Questions......Page 72
Problems......Page 73
Experimental Design......Page 74
Describing Variables......Page 75
Cause and Effect......Page 77
Appendix Key Terms......Page 80
Appendix Problems......Page 81
Chapter 3: Optimization: Doing the Best You Can......Page 82
3.1 Two Kinds of Optimization: A Matter of Focus......Page 83
Choice & Consequence: Do People Really Optimize?......Page 85
3.2 Optimization in Levels......Page 86
Comparative Statics......Page 88
Marginal Cost......Page 90
Evidence-Based Economics: How does location affect the rental cost of housing?......Page 93
Key Terms......Page 96
Problems......Page 97
Chapter 4: Demand, Supply, and Equilibrium......Page 100
4.1 Markets......Page 101
Competitive Markets......Page 102
4.2 How Do Buyers Behave?......Page 103
Willingness to Pay......Page 104
From Individual Demand Curves to Aggregated Demand Curves......Page 105
Building the Market Demand Curve......Page 106
Shifting the Demand Curve......Page 107
Evidence-Based Economics: How much more gasoline would people buy if its price were lower?......Page 109
Supply Curves......Page 111
Shifting the Supply Curve......Page 112
4.4 Supply and Demand in Equilibrium......Page 115
Curve Shifting in Competitive Equilibrium......Page 117
4.5 What Would Happen If the Government Tried to Dictate the Price of Gasoline?......Page 119
Choice & Consequence: The Unintended Consequences of Fixing Market Prices......Page 121
Summary......Page 122
Questions......Page 123
Problems......Page 124
Chapter 5: Consumers and Incentives......Page 126
What You Like......Page 127
Choice & Consequence: Absolutes vs. Percentages......Page 128
How Much Money You Have to Spend......Page 129
5.2 Putting It All Together......Page 130
Price Changes......Page 132
5.3 From the Buyer’s Problem to the Demand Curve......Page 133
5.4 Consumer Surplus......Page 135
An Empty Feeling: Loss in Consumer Surplus When Price Increases......Page 136
Evidence-Based Economics: Would a smoker quit the habit for $100 per month?......Page 137
The Price Elasticity of Demand......Page 140
Moving Up and Down the Demand Curve......Page 141
Elasticity Measures......Page 142
Determinants of the Price Elasticity of Demand......Page 143
The Income Elasticity of Demand......Page 145
Letting the Data Speak: Should McDonald’s Be Interested in Elasticities?......Page 146
Key Terms......Page 147
Questions......Page 148
Problems......Page 149
Appendix: Representing Preferences with Indifference Curves: Another Use of the Budget Constraint......Page 151
Appendix Key Terms......Page 153
Chapter 6: Sellers and Incentives......Page 154
6.2 The Seller’s Problem......Page 155
Making the Goods: How Inputs Are Turned into Outputs......Page 156
The Cost of Doing Business: Introducing Cost Curves......Page 158
The Rewards of Doing Business: Introducing Revenue Curves......Page 160
Putting It All Together: Using the Three Components to Do the Best You Can......Page 162
6.3 From the Seller’s Problem to the Supply Curve......Page 164
Price Elasticity of Supply......Page 165
Shutdown......Page 166
6.4 Producer Surplus......Page 167
6.5 From the Short Run to the Long Run......Page 169
Choice & Consequence: Visiting a Car Manufacturing Plant......Page 170
Firm Entry......Page 171
Firm Exit......Page 172
Zero Profits in the Long Run......Page 173
Economic Profit versus Accounting Profit......Page 174
Evidence-Based Economics: How would an ethanol subsidy affect ethanol producers?......Page 175
Summary......Page 178
Questions......Page 179
Problems......Page 180
Appendix: When Firms Have Different Cost Structures......Page 182
Chapter 7: Perfect Competition and the Invisible Hand......Page 184
7.1 Perfect Competition and Efficiency......Page 185
Social Surplus......Page 186
7.2 Extending the Reach of the Invisible Hand: From the Individual to the Firm......Page 188
7.3 Extending the Reach of the Invisible Hand: Allocation of Resources Across Industries......Page 192
7.4 Prices Guide the Invisible Hand......Page 195
Deadweight Loss......Page 196
The Command Economy......Page 197
Choice & Consequence: FEMA and Walmart After Katrina......Page 198
The Central Planner......Page 199
7.5 Equity and Efficiency......Page 201
Evidence-Based Economics: Can markets composed of only self-interested people maximize the overall well-being of society?......Page 202
Questions......Page 206
Problems......Page 207
Chapter 8: Trade......Page 210
8.1 The Production Possibilities Curve......Page 211
Calculating Opportunity Cost......Page 213
8.2 The Basis for Trade: Comparative Advantage......Page 214
Absolute Advantage......Page 215
Choice & Consequence: An Experiment on Comparative Advantage......Page 216
The Price of the Trade......Page 217
8.3 Trade Between States......Page 218
Economy-Wide PPC......Page 219
Comparative Advantage and Specialization Among States......Page 221
8.4 Trade Between Countries......Page 222
Determinants of Trade Between Countries......Page 224
Exporting Nations: Winners and Losers......Page 225
Importing Nations: Winners and Losers......Page 226
Determinants of a Country’s Comparative Advantage......Page 227
Environmental and Resource Concerns......Page 228
The Effects of Tariffs......Page 229
Evidence-Based Economics: Will free trade cause you to lose your job?......Page 231
Key Terms......Page 233
Problems......Page 234
Chapter 9: Externalities and Public Goods......Page 238
9.1 Externalities......Page 239
A “Broken” Invisible Hand: Negative Externalities......Page 240
A “Broken” Invisible Hand: Positive Externalities......Page 242
Choice & Consequence: Positive Externalities in Spots You Never Imagined......Page 244
9.2 Private Solutions to Externalities......Page 245
The Coase Theorem......Page 246
Private Solution: Doing the Right Thing......Page 247
Government Regulation: Command-and-Control Policies......Page 248
Corrective Taxes and Subsidies......Page 249
Letting the Data Speak: How To Value Externalities......Page 250
Letting the Data Speak: Pay As You Throw: Consumers Create Negative Externalities Too!......Page 251
9.4 Public Goods......Page 252
Government Provision of Public Goods......Page 253
Choice & Consequence: The Free-Rider’s Dilemma......Page 254
Private Provision of Public Goods......Page 256
9.5 Common Pool Resource Goods......Page 258
Choice & Consequence: The Race to Fish......Page 259
Evidence-Based Economics: How can the Queen of England lower her commute time to Wembley Stadium?......Page 260
Questions......Page 262
Problems......Page 263
Chapter 10: The Government in the Economy: Taxation and Regulation......Page 266
10.1 Taxation and Government Spending in the United States......Page 267
Where Does the Money Come From?......Page 268
Why Does the Government Tax and Spend?......Page 270
Letting the Data Speak: Understanding Federal Income Tax Brackets......Page 272
Taxation: Tax Incidence and Deadweight Losses......Page 274
Choice & Consequence: The Deadweight Loss Depends on the Tax......Page 277
Direct Regulation......Page 279
The Direct Costs of Bureaucracies......Page 282
Corruption......Page 283
10.4 Equity Versus Efficiency......Page 284
10.5 Consumer Sovereignty and Paternalism......Page 285
Evidence-Based Economics: What is the optimal size of government?......Page 286
Letting the Data Speak: The Efficiency of Government Versus Privately Run Expeditions......Page 288
Questions......Page 289
Problems......Page 290
Chapter 11: Markets for Factors of Production......Page 292
11.1 The Competitive Labor Market......Page 293
The Demand for Labor......Page 294
11.2 The Supply of Labor: Your Labor-Leisure Trade-off......Page 296
Letting the Data Speak: “Get Your Hot Dogs Here!”......Page 298
Labor Supply Shifters......Page 299
11.3 Wage Inequality......Page 301
Differences in Human Capital......Page 302
Choice & Consequence: Paying for Worker Training......Page 303
Choice & Consequence: Compensating Wage Differentials......Page 304
Changes in Wage Inequality Over Time......Page 306
11.4 The Market for Other Factors of Production: Physical Capital and Land......Page 307
Evidence-Based Economics: Is there discrimination in the labor market?......Page 308
Questions......Page 310
Problems......Page 311
Chapter 12: Monopoly......Page 314
12.1 Introducing a New Market Structure......Page 315
Legal Market Power......Page 316
Choice & Consequence: Cleaning Up While Cleaning Up......Page 317
Economies of Scale......Page 318
12.3 The Monopolist’s Problem......Page 319
Revenue Curves......Page 320
Price, Marginal Revenue, and Total Revenue......Page 322
Setting the Optimal Price......Page 324
Does a Monopoly Have a Supply Curve?......Page 326
12.5 The “Broken” Invisible Hand: The Cost of Monopoly......Page 327
12.6 Restoring Efficiency......Page 328
Three Degrees of Price Discrimination......Page 329
Letting the Data Speak: Third-Degree Price Discrimination in Action......Page 331
The Microsoft Case......Page 332
Price Regulation......Page 333
Evidence-Based Economics: Can a monopoly ever be good for society?......Page 334
Questions......Page 336
Problems......Page 337
Chapter 13: Game Theory and Strategic Play......Page 340
13.1 Simultaneous Move Games......Page 341
Best Responses and the Prisoners’ Dilemma......Page 342
Games without Dominant Strategies......Page 343
13.2 Nash Equilibrium......Page 345
Finding a Nash Equilibrium......Page 346
Choice & Consequence: Work or Surf?......Page 347
Tragedy of the Commons Revisited......Page 348
Zero-Sum Games......Page 349
Game Theory in Penalty Kicks......Page 350
13.5 Extensive-Form Games......Page 351
Backward Induction......Page 352
First-Mover Advantage, Commitment, and Vengeance......Page 353
Evidence-Based Economics: Is there value in putting yourself into someone else’s shoes?......Page 354
Key Terms......Page 357
Problems......Page 358
Chapter 14: Oligopoly and Monopolistic Competition......Page 362
14.1 Two More Market Structures......Page 363
14.2 Oligopoly......Page 364
Oligopoly Model with Homogeneous Products......Page 365
Doing the Best You Can: How Should You Price to Maximize Profits?......Page 366
Oligopoly Model with Differentiated Products......Page 367
Collusion: One Way to Keep Prices High......Page 369
Letting the Data Speak: To Cheat or Not to Cheat: That Is the Question......Page 371
The Monopolistic Competitor’s Problem......Page 372
Doing the Best You Can: How a Monopolistic Competitor Maximizes Profits......Page 373
How a Monopolistic Competitor Calculates Profits......Page 374
Long-Run Equilibrium in a Monopolistically Competitive Industry......Page 375
14.4 The “Broken” Invisible Hand......Page 377
Regulating Market Power......Page 378
14.5 Summing Up: Four Market Structures......Page 379
Evidence-Based Economics: How many firms are necessary to make a market competitive?......Page 380
Questions......Page 383
Problems......Page 384
Chapter 15: Trade-offs Involving Time and Risk......Page 388
15.1 Modeling Time and Risk......Page 389
Future Value and the Compounding of Interest......Page 390
Borrowing Versus Lending......Page 392
Present Value and Discounting......Page 393
Time Discounting......Page 395
Preference Reversals......Page 396
Evidence-Based Economics: Do people exhibit a preference for immediate gratification?......Page 397
Roulette Wheels and Probabilities......Page 398
Independence and the Gambler’s Fallacy......Page 399
Expected Value......Page 400
Extended Warranties......Page 401
15.5 Risk Preferences......Page 402
Summary......Page 403
Problems......Page 404
Chapter 16: The Economics of Information......Page 406
16.1 Asymmetric Information......Page 407
Hidden Characteristics: Adverse Selection in the Used Car Market......Page 408
Hidden Characteristics: Adverse Selection in the Health Insurance Market......Page 409
Market Solutions to Adverse Selection: Signaling......Page 410
Evidence-Based Economics: Why do new cars lose considerable value the minute they are driven off the lot?......Page 411
16.2 Hidden Actions: Markets with Moral Hazard......Page 413
Market Solutions to Moral Hazard in the Labor Market: Efficiency Wages......Page 414
Market Solutions to Moral Hazard in the Insurance Market: “Putting Your Skin in the Game”......Page 415
Letting the Data Speak: Designing Incentives for Teachers......Page 416
Evidence-Based Economics: Why is private health insurance so expensive?......Page 417
16.3 Government Policy in a World of Asymmetric Information......Page 418
Crime and Punishment as a Principal–Agent Problem......Page 419
Letting the Data Speak: Moral Hazard Among Job Seekers......Page 420
Questions......Page 421
Problems......Page 422
Chapter 17: Auctions and Bargaining......Page 424
17.1 Auctions......Page 425
Open-Outcry English Auctions......Page 427
Letting the Data Speak: To Snipe or Not to Snipe?......Page 428
Open-Outcry Dutch Auctions......Page 429
Sealed Bid: First-Price Auction......Page 430
Sealed Bid: Second-Price Auction......Page 431
The Revenue Equivalence Theorem......Page 433
Evidence-Based Economics: How should you bid in an eBay auction?......Page 434
What Determines Bargaining Outcomes?......Page 435
Bargaining in Action: The Ultimatum Game......Page 436
Bargaining and the Coase Theorem......Page 438
Evidence-Based Economics: Who determines how the household spends its money?......Page 439
Questions......Page 441
Problems......Page 442
Chapter 18: Social Economics......Page 444
The Economics of Charity......Page 445
Letting the Data Speak: Do People Donate Less When It’s Costlier to Give?......Page 447
Letting the Data Speak: Why Do People Give to Charity?......Page 448
The Economics of Fairness......Page 449
Evidence-Based Economics: Do people care about fairness?......Page 452
18.2 The Economics of Trust and Revenge......Page 454
The Economics of Trust......Page 455
The Economics of Revenge......Page 456
The Economics of Peer Effects......Page 458
Letting the Data Speak: Is Economics Bad for You?......Page 459
Following the Crowd: Herding......Page 460
Letting the Data Speak: Your Peers Affect Your Waistline......Page 461
Key Terms......Page 462
Problems......Page 463
Chapter 19: The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates......Page 466
19.1 Macroeconomic Questions......Page 467
Production......Page 469
Income......Page 470
Circular Flows......Page 471
National Income Accounts: Production......Page 472
National Income Accounts: Expenditure......Page 474
Evidence-Based Economics: In the United States, what is the total market value of annual economic production?......Page 476
Letting the Data Speak: Saving vs. Investment......Page 478
19.3 What Isn’t Measured by GDP?......Page 479
Home Production......Page 480
Negative Externalities......Page 481
Gross Domestic Product vs. Gross National Product......Page 482
Does GDP Buy Happiness?......Page 483
19.4 Real vs. Nominal......Page 484
The GDP Deflator......Page 486
The Consumer Price Index......Page 488
Adjusting Nominal Variables......Page 489
Summary......Page 490
Problems......Page 491
Chapter 20: Aggregate Incomes......Page 494
Measuring Differences in Income per Capita......Page 495
Inequality in Income per Capita......Page 497
Income per Worker......Page 498
Productivity......Page 499
Choice & Consequence: Dangers of Just Focusing on Income per Capita......Page 500
Productivity Differences......Page 502
Labor......Page 503
Representing the Aggregate Production Function......Page 504
Dimensions of Technology......Page 506
Letting the Data Speak: Moore’s Law......Page 507
Letting the Data Speak: Efficiency of Production and Productivity at the Company Level......Page 508
Letting the Data Speak: Monopoly and GDP......Page 509
Evidence-Based Economics: Why is the average American so much richer than the average Indian?......Page 510
Key Terms......Page 512
Problems......Page 513
Appendix: The Mathematics of Aggregate Production Functions......Page 516
Chapter 21: Economic Growth......Page 518
21.1 The Power of Economic Growth......Page 519
Exponential Growth......Page 520
Choice & Consequence: The Power of Growth......Page 522
Patterns of Growth......Page 523
Letting the Data Speak: Levels versus Growth......Page 525
21.2 How Does a Nation’s Economy Grow?......Page 527
What Brings Sustained Growth?......Page 528
Knowledge, Technological Change, and Growth......Page 529
Evidence-Based Economics: Why are you so much more prosperous than your great-greatgrandparents were?......Page 531
Growth Before Modern Times......Page 533
Malthusian Limits to Growth......Page 534
Growth and Inequality......Page 535
Letting the Data Speak: Income Inequality in the United States......Page 536
Growth and Poverty......Page 537
How Can We Reduce Poverty?......Page 538
Letting the Data Speak: Life Expectancy and Innovation......Page 539
Questions......Page 540
Problems......Page 541
Appendix: The Solow Growth Model......Page 543
Appendix Problems......Page 551
Chapter 22: Why Isn’t the Whole World Developed?......Page 552
22.1 Proximate Versus Fundamental Causes of Prosperity......Page 553
Geography......Page 554
Institutions......Page 555
A Natural Experiment of History......Page 556
Inclusive and Extractive Economic Institutions......Page 558
How Economic Institutions Affect Economic Outcomes......Page 559
Letting the Data Speak: Divergence and Convergence in Eastern Europe......Page 560
The Logic of Extractive Economic Institutions......Page 563
Letting the Data Speak: Blocking the Railways......Page 564
Evidence-Based Economics: Are tropical and semitropical areas condemned to poverty by their geographies?......Page 565
22.3 Is Foreign Aid the Solution to World Poverty?......Page 570
Choice & Consequence: Foreign Aid and Corruption......Page 571
Summary......Page 572
Problems......Page 573
Chapter 23: Employment and Unemployment......Page 576
Classifying Potential Workers......Page 577
Calculating the Unemployment Rate......Page 578
Trends in the Unemployment Rate......Page 579
Who Is Unemployed?......Page 580
The Demand for Labor......Page 581
Shifts in the Labor Demand Curve......Page 582
Shifts in the Labor Supply Curve......Page 584
Equilibrium in a Competitive Labor Market......Page 585
23.4 Job Search and Frictional Unemployment......Page 586
Minimum Wage Laws......Page 587
Choice & Consequence: The Luddites......Page 588
Labor Unions and Collective Bargaining......Page 589
Downward Wage Rigidity and Unemployment Fluctuations......Page 590
The Natural Rate of Unemployment and Cyclical Unemployment......Page 591
Evidence-Based Economics: What happens to employment and unemployment if local employers go out of business?......Page 593
Summary......Page 594
Key Terms......Page 595
Problems......Page 596
Chapter 24: Credit Markets......Page 600
Borrowers and the Demand for Loans......Page 601
Real and Nominal Interest Rates......Page 602
The Credit Demand Curve......Page 603
Saving Decisions......Page 604
The Credit Supply Curve......Page 605
Choice & Consequence: Why Do People Save?......Page 606
Equilibrium in the Credit Market......Page 607
24.2 Banks and Financial Intermediation: Putting Supply and Demand Together......Page 609
Assets and Liabilities on the Balance Sheet of a Bank......Page 610
Maturity Transformation......Page 612
Management of Risk......Page 613
Bank Runs......Page 614
Bank Regulation and Bank Solvency......Page 615
Evidence-Based Economics: How often do banks fail?......Page 616
Choice & Consequence: Too Big to Fail......Page 617
Summary......Page 618
Questions......Page 619
Problems......Page 620
Chapter 25: The Monetary System......Page 622
The Functions of Money......Page 623
The Money Supply......Page 624
Choice & Consequence: Non-Convertible Currencies in U.S. History......Page 625
Nominal GDP, Real GDP, and Inflation......Page 626
The Quantity Theory of Money......Page 627
The Consequences of Inflation......Page 628
The Social Costs of Inflation......Page 629
The Social Benefits of Inflation......Page 630
Evidence-Based Economics: What caused the German hyperinflation of 1922-1923?......Page 631
The Central Bank and the Objectives of Monetary Policy......Page 633
Bank Reserves......Page 634
The Demand Side of the Federal Funds Market......Page 636
The Supply Side of the Federal Funds Market and Equilibrium in the Federal Funds Market......Page 637
The Fed’s Influence on the Money Supply and the Inflation Rate......Page 640
Choice & Consequence: Obtaining Reserves Outside the Federal Funds Market......Page 641
The Relationship Between the Federal Funds Rate and the Long-Term Real Interest Rate......Page 642
Choice & Consequence: Two Models of Inflation Expectations......Page 643
Key Terms......Page 645
Problems......Page 646
Chapter 26: Short-Run Fluctuations......Page 648
26.1 Economic Fluctuations and Business Cycles......Page 649
Patterns of Economic Fluctuations......Page 651
The Great Depression......Page 653
Labor Demand and Fluctuations......Page 655
Sources of Fluctuations......Page 657
Letting the Data Speak: Unemployment and the Growth Rate of Real GDP: Okun’s Law......Page 658
Multipliers and Economic Fluctuations......Page 661
Equilibrium in the Short Run, with Multipliers and Downward Wage Rigidity......Page 663
Equilibrium in the Medium Run: Partial Recovery and Full Recovery......Page 664
26.3 Modeling Expansions......Page 668
Evidence-Based Economics: What caused the recession of 2007–2009?......Page 669
Summary......Page 674
Questions......Page 675
Problems......Page 676
Chapter 27: Countercyclical Macroeconomic Policy......Page 678
27.1 The Role of Countercyclical Policies in Economic Fluctuations......Page 679
27.2 Countercyclical Monetary Policy......Page 681
Controlling the Federal Funds Rate......Page 682
Other Tools of the Fed......Page 684
Expectations, Inflation, and Monetary Policy......Page 685
Contractionary Monetary Policy: Control of Inflation......Page 686
Choice & Consequence: Policy Mistakes......Page 688
Policy Trade-offs......Page 689
Fiscal Policy Over the Business Cycle: Automatic and Discretionary Components......Page 690
Analysis of Expenditure-Based Fiscal Policy......Page 692
Analysis of Taxation-Based Fiscal Policy......Page 694
Fiscal Policies that Directly Target the Labor Market......Page 695
Policy Waste and Policy Lags......Page 696
Evidence-Based Economics: How much does government expenditure stimulate GDP?......Page 697
27.4 Policies That Blur the Line Between Fiscal and Monetary Policy......Page 699
Key Terms......Page 700
Problems......Page 701
Chapter 28: Macroeconomics and International Trade......Page 704
Absolute Advantage and Comparative Advantage......Page 705
Comparative Advantage and International Trade......Page 708
Efficiency and Winners and Losers from Trade......Page 709
How We Trade......Page 710
Trade Barriers: Tariffs......Page 711
Letting the Data Speak: Living in an Interconnected World......Page 712
Trade Surpluses and Trade Deficits......Page 713
International Financial Flows......Page 714
The Workings of the Current Account and the Financial Account......Page 715
28.3 International Trade, Technology Transfer, and Economic Growth......Page 717
Letting the Data Speak: From IBM to Lenovo......Page 719
Evidence-Based Economics: Are companies like Nike harming workers in Vietnam?......Page 720
Summary......Page 722
Problems......Page 723
Chapter 29: Open Economy Macroeconomics......Page 726
Nominal Exchange Rates......Page 727
Flexible, Managed, and Fixed Exchange Rates......Page 728
29.2 The Foreign Exchange Market......Page 729
How Do Governments Intervene in the Foreign Exchange Market?......Page 732
Defending an Overvalued Exchange Rate......Page 733
Evidence-Based Economics: How did George Soros make $1 billion?......Page 735
From the Nominal to the Real Exchange Rate......Page 737
Co-Movement Between the Nominal and the Real Exchange Rates......Page 738
The Real Exchange Rate and Net Exports......Page 739
29.4 GDP in the Open Economy......Page 740
Letting the Data Speak: Why Have Chinese Authorities Kept the Yuan Undervalued?......Page 741
Interest Rates, Exchange Rates, and Net Exports......Page 742
Revisiting Black Wednesday......Page 743
Summary......Page 744
Questions......Page 745
Problems......Page 746
Endnotes......Page 749
Glossary......Page 755
Credits......Page 767
B......Page 771
C......Page 772
E......Page 774
F......Page 776
G......Page 777
H......Page 778
I......Page 779
L......Page 780
M......Page 781
N......Page 782
P......Page 783
R......Page 785
S......Page 786
U......Page 788
W......Page 789
Z......Page 790