Open economy and the world economy : text book in international economics

Here at last is a textbook in international eco nomics that is truly international, that discusses theory and policy from the perspective of small as well as large economies, and that does not limit itself to specifically U.S. problems. John Williamson, a leading international economist who has taught the course in England, Brazil, and in the United States, provides the student with a truly comprehensive basis for understanding the world economy. All the traditional topics-com parative advantage, the Heckscher-Ohlin model, commercial policy, customs unions, balance of payments theory, fixed and floating exchange rates, and the international monetary system are, of course, covered systematically and in a manner that combines theoretical rigor with an awareness of institutional realities. But William son also discusses important topics not usually covered in international economics textbooks, such as intra-industry trade, the real theory of in ternational investment, the world capital market, and global macroeconomics.

Throughout the emphasis is on theory as a tool for understanding the real world and for formu lating policy, rather than as an end in itself. A consistent effort is made to acquaint students with the pressures that have influenced the evolution of economic theory, and the relevance of theory for policy is illustrated with examples of real policy problems taken from all over the world. Beautifully written and brilliantly argued, The Open Economy and the World Economy is an ex citing new text which, in the breadth of its cov erage, the relevance of its policy examples, and, above all, the truly international perspective that pervades it, is truly unique.