国际经济学第八版下册课后答案英文版-13

克鲁格曼《国际经济学》第8版笔记和课后习题详解第19章宏观经济政策和浮动汇率制下的国际协调19.1复习笔记1．支持浮动汇率制的观点（1）货币政策自主性在布雷顿森林体系的固定汇率制度下，除美国以外的其他国家极少有机会运用货币政策来达到内部平衡和外部平衡。

由于要抵消资本流动的影响，货币政策的作用被弱化了。

但是，如果各国中央银行不再为固定汇率而被迫干预货币市场，各国政府就能够运用货币政策来达到内部平衡和外部平衡，并且各国不再会因为外部因素导致本国出现通货膨胀或通货紧缩。

浮动汇率制的提倡者认为，如果中央银行不必再承担稳定其币值的义务，那么它们将恢复对货币的控制。

货币贬值会降低本国产品的相对价格，从而使外国对本国产品的需求增加，进而减少本国的失业。

同样，在经济过热的国家中，中央银行可以通过压缩货币供给来抑制过热的经济活动，而不必担心过多的国际储备流入会破坏其稳定币值的努力。

通过加强对货币政策的控制，各国可以排除那些扭曲国际支付的障碍。

浮动汇率制的提倡者还认为，各国如果使用浮动汇率，就能够选择自己愿意接受的长期通货膨胀率，而不再会被动地引进国外的通货膨胀率。

支持浮动汇率最为有力的理论之一就是认为它能够通过汇率的自动调整来隔绝国外持续性通货膨胀带来的影响。

产生这种隔绝的机制是购买力平价。

（2）对称性浮动汇率制的支持者认为：浮动汇率制可以消除类似布雷顿森林体系所造成的不对称。

由于各国不再将本国货币钉住对美元的汇率，也就不必因此而持有美元作储备。

所以，各国都可以自主决定本国的货币状况。

同样，美国在运用货币政策或财政政策改变美元汇率时，不会再遇到特别的阻碍。

最后，在全球范围内，所有国家的汇率都将由市场而不是由政府决定。

（3）汇率自动稳定器功能与固定汇率相比，浮动汇率相对减少了需求冲击对就业的影响，从而有利于经济稳定。

当对本国产品和劳务的需求下降时，浮动汇率下的货币贬值，会使本国产品和劳务的价格下降，部分地减轻了这种需求下降的不利影响。

Chapter 5The Standard Trade ModelChapter OrganizationA Standard Model of a Trading EconomyProduction Possibilities and Relative SupplyRelative Prices and DemandThe Welfare Effect of Changes in the Terms of TradeDetermining Relative PricesEconomic Growth: A Shift of the RS CurveGrowth and the Production Possibility FrontierRelative Supply and the Terms of TradeInternational Effects of GrowthCase Study: Has the Growth of Newly Industrializing Countries Hurt Advanced Nations? International Transfers of Income: Shifting the RD CurveThe Transfer ProblemEffects of a Transfer on the Terms of TradePresumptions about the Terms of Trade Effects of TransfersCase Study: The Transfer Problem and the Asian CrisisTariffs and Export Subsidies: Simultaneous Shifts in RS and RDRelative Demand and Supply Effects of a TariffEffects of an Export SubsidyImplications of Terms of Trade Effects: Who Gains and Who Loses?SummaryAppendix: Representing International Equilibrium with Offer CurvesDeriving a Country’s Offer CurveInternational EquilibriumChapter 5 The Standard Trade Model 17Chapter OverviewPrevious chapters have highlighted specific sources of comparative advantage which give rise to international trade. This chapter presents a general model which admits previous models as special cases. This “standard trade model” is the workhorse of international trade theory and can be used to address a wide range of issues. Some of these issues, such as the welfare and distributional effects of economic growth, transfers between nations, and tariffs and subsidies on traded goods are considered in this chapter. The standard trade model is based upon four relationships. First, an economy will produce at the point where the production possibilities curve is tangent to the relative price line (called the isovalue line). Second, indifference curves describe the tastes of an economy, and the consumption point for that economy is found at the tangency of the budget line and the highest indifference curve. These two relationships yield the familiar general equilibrium trade diagram for a small economy (one which takes as given the terms of trade), where the consumption point and production point are the tangencies of the isovalue line with the highest indifference curve and the production possibilities frontier, respectively.You may want to work with this standard diagram to demonstrate a number of basic points. First, an autarkic economy must produce what it consumes, which determines the equilibrium price ratio; and second, opening an economy to trade shifts the price ratio line and unambiguously increases welfare. Third, an improvement in the terms of trade increases welfare in the economy. Fourth, it is straightforward to move from a small country analysis to a two country analysis by introducing a structure of world relative demand and supply curves which determine relative prices.These relationships can be used in conjunction with the Rybczynski and the Stolper-Samuelson Theorems from the previous chapter to address a range of issues. For example, you can consider whether the dramatic economic growth of countries like Japan and Korea has helped or hurt the United States as a whole, and also identify the classes of individuals within the United States who have been hurt by the particular growth biases of these countries. In teaching these points, it might be interesting and useful to relate them to current events. For example, you can lead a class discussion of the implications for the United States of the provision of forms of technical and economic assistance to the emerging economies around the world or the ways in which a world recession can lead to a fall in demand for U.S. export goods.The example provided in the text considers the popular arguments in the media that growth in Japan or Korea hurts the United States. The analysis presented in this chapter demonstrates that the bias of growth is important in determining welfare effects rather than the country in which growth occurs. The existence of biased growth, and the possibility of immiserizing growth is discussed. The Relative Supply (RS) and Relative Demand (RD) curves illustrate the effect of biased growth on the terms of trade. The new terms of trade line can be used with the general equilibrium analysis to find the welfare effects of growth. A general principle which emerges is that a country which experiences export-biased growth will have a deterioration in its terms of trade, while a country which experiences import-biased growth has an improvement in its terms of trade. A case study points out that growth in the rest of the world has made other countries more like the United States. This import-biased growth has worsened the terms of trade for the United States. The second issue addressed in the context of the standard trade model is the effect of international transfers. The salient point here is the direction, if any, in which the relative demand curve shifts in response to the redistribution of income from a transfer. A transfer worsens the donor’s ter ms of trade if it has a higher marginal propensity to consume its export good than the recipient. The presence of non-traded goods tends to reinforce the deterioration of terms of trade for the donor country. The case study attendant to this issue involves the deterioration of many Asian countries’ terms of trade due to the large capital withdrawals at the end of the 1990s.18 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionThe third area to which the standard trade model is applied are the effects of tariffs and export subsidies on welfare and terms of trade. The analysis proceeds by recognizing that tariffs or subsidies shift both the relative supply and relative demand curves. A tariff on imports improves the terms of trade, expressed in external prices, while a subsidy on exports worsens terms of trade. The size of the effect depends upon the size of the country in the world. Tariffs and subsidies also impose distortionary costs upon the economy. Thus, if a country is large enough, there may be an optimum, non-zero tariff. Export subsidies, however, only impose costs upon an economy. Intranationally, tariffs aid import-competing sectors and hurt export sectors while subsidies have the opposite effect. An appendix presents offer curve diagrams and explains this mode of analysis.Answers to Textbook Problems1.Note how welfare in both countries increases as the two countries move from productionpatterns governed by domestic prices (dashed line) to production patterns governed by worldprices (straight line).2.3. An increase in the terms of trade increases welfare when the PPF is right-angled. The production pointis the corner of the PPF. The consumption point is the tangency of the relative price line and the highest indifference curve. An improvement in the terms of trade rotates the relative price line about its intercept with the PPF rectangle (since there is no substitution of immobile factors, the production point stays fixed). The economy can then reach a higher indifference curve. Intuitively, although there is no supply response, the economy receives more for the exports it supplies and pays less for the imports it purchases.Chapter 5 The Standard Trade Model 19 4. The difference from the standard diagram is that the indifference curves are right angles rather thansmooth curves. Here, a terms of trade increase enables an economy to move to a higher indifference curve. The income expansion path for this economy is a ray from the origin. A terms of tradeimprovement moves the consumption point further out along the ray.5. The terms of trade of Japan, a manufactures (M) exporter and a raw materials (R) importer, is the worldrelative price of manufactures in terms of raw materials (p M/p R). The terms of trade change can be determined by the shifts in the world relative supply and demand (manufactures relative to raw materials) curves. Note that in the following answers, world relative supply (RS) and relative demand (RD) are always M relative to R. We consider all countries to be large, such that changes affect the world relative price.a. Oil supply disruption from the Middle East decreases the supply of raw materials, which increasesthe world relative supply. The world relative supply curve shifts out, decreasing the world relative price of manufactured goods and deteriorating Japan’s terms of t rade.b. Korea’s increased automobile production increases the supply of manufactures, which increasesthe world RS. The world relative supply curve shifts out, decreasing the world relative price ofmanufactured goods and deteriorating Japan’s terms of tr ade.c. U.S. development of a substitute for fossil fuel decreases the demand for raw materials. Thisincreases world RD, and the world relative demand curve shifts out, increasing the world relative price of manufactured goods and improving Japan’s terms of trade. This occurs even if no fusion reactors are installed in Japan since world demand for raw materials falls.d. A harvest failure in Russia decreases the supply of raw materials, which increases the world RS.The world relative supply curve shifts o ut. Also, Russia’s demand for manufactures decreases,which reduces world demand so that the world relative demand curve shifts in. These forcesdecrease the world relative price of manufactured goods and deteriorate Japan’s terms of trade.e. A reduction in Japan’s tariff on raw materials will raise its internal relative price of manufactures.This price change will increase Japan’s RS and decrease Japan’s RD, which increases the worldRS and decreases the world RD (i.e., world RS shifts out and world RD shifts in). The worldrelative price of manufactures declines and Japan’s terms of trade deteriorate.6. The declining price of services relative to manufactured goods shifts the isovalue line clockwise sothat relatively fewer services and more manufactured goods are produced in the United States, thus reducing U.S. welfare.20 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Edition7. These results acknowledge the biased growth which occurs when there is an increase in one factor ofproduction. An increase in the capital stock of either country favors production of Good X, while an increase in the labor supply favors production of Good Y. Also, recognize the Heckscher-Ohlin result that an economy will export that good which uses intensively the factor which that economy has in relative abundance. Country A exports Good X to Country B and imports Good Y from Country B.The possibility of immiserizing growth makes the welfare effects of a terms of trade improvement due to export-biased growth ambiguous. Import-biased growth unambiguously improves welfare for the growing country.a. A’s terms of trade worsen, A’s welfare may increase or, less likely, decrease, and B’s welfareincreases.b. A’s terms of trade improve, A’s welfare increases and B’s welfare decreases.c. B’s terms of trade improve, B’s welfare increases and A’s welfare decreases.d. B’s terms of trade worsen, B’s welfare may increase or, less likely, decrease, and A’s welfareincreases.8. Immiserizing growth occurs when the welfare deteriorating effects of a worsening in an economy’sterms of trade swamp the welfare improving effects of growth. For this to occur, an economy must undergo very biased growth, and the economy must be a large enough actor in the world economy such that its actions spill over to adversely alter the terms of trade to a large degree. This combination of events is unlikely to occur in practice.9. India opening should be good for the U.S. if it reduces the relative price of goods that China sends tothe U.S. and hence increases the relative price of goods that the U.S. exports. Obviously, any sector in the U.S. hurt by trade with China would be hurt again by India, but on net, the U.S. wins. Note that here we are making different assumptions about what India produces and what is tradable than we are in Question #6. Here we are assuming India exports products the U.S. currently imports and China currently exports. China will lose by having the relative price of its export good driven down by the increased production in India.10. Aid which must be spent on exports increases the demand for those export goods and raises their pricerelative to other goods. There will be a terms of trade deterioration for the recipient country. This can be viewed as a polar case of the effect of a transfer on the terms of trade. Here, the marginal propensity to consume the export good by the recipient country is 1. The donor benefits from a terms of trade improvement. As with immiserizing growth, it is theoretically possible that a transfer actuallyworsens the welfare of the recipient.11. When a country subsidizes its exports, the world relative supply and relative demand schedules shiftsuch that the terms of trade for the country worsen. A countervailing import tariff in a second country exacerbates this effect, moving the terms of trade even further against the first country. The firstcountry is worse off both because of the deterioration of the terms of trade and the distortionsintroduced by the new internal relative prices. The second country definitely gains from the firstcountry’s export su bsidy, and may gain further from its own tariff. If the second country retaliated with an export subsidy, then this would offset the initial improvement in the terms of trade; the“retaliatory” export subsidy definitely helps the first country and hurts th e second.。

CHAPTER 14MONEY, INTEREST RATES, AND EXCHANGE RATESANSWERS TO TEXTBOOK PROBLEMS1. A reduction in real money demand has the same effects as an increase in thenominal money supply. In figure 14.1, the reduction in money demand isdepicted as a backward shift in the money demand schedule from L1 to L2. The immediate effect of this is a depreciation of the exchange rate from E1 to E2, if the reduction in money demand is temporary, or a depreciation to E3if thereduction is permanent. The larger impact effect of a permanent reduction in money demand arises because this change also affects the future exchange rate expected in the foreign exchange market. In the long run, the price level rises to bring the real money supply into line with real money demand, leaving all relative prices, output, and the nominal interest rate the same and depreciating the domestic currency in proportion to the fall in real money demand. The long-run level of real balances is (M/P2), a level where the interest rate in thelong-run equals its initial value. The dynamics of adjustment to a permanent reduction in money demand are from the initial point 1 in the diagram, where the exchange rate is E1, immediately to point 2, where the exchange rate is E3and then, as the price level falls over time, to the new long-run position at point 3, with an exchange rate of E4.2. A fall in a country's population would reduce money demand, all else equal,since a smaller population would undertake fewer transactions and thus demand less money. This effect would probably be more pronounced if the fall in the population were due to a fall in the number of households rather than a fall in the average size of a household since a fall in the average size of households implies a population decline due to fewer children who have a relatively small transactions demand for money compared to adults. The effect on the aggregate money demand function depends upon no change in income commensurate with the change in population -- else, the change in incomewould serve as a proxy for the change in population with no effect on the aggregate money demand function.R(M/P E 1E 4E 2E 3E(M/PFigure 14-13. Equation 14-4 is M s /P = L(R,Y). The velocity of money, V = Y/(M/P). Thus,when there is equilibrium in the money market such that money demand equals money supply, V = Y/L(R,Y). When R increases, L(R,Y) falls and thus velocity rises. When Y increases, L(R,Y) rises by a smaller amount (since the elasticity of aggregate money demand with respect to real output is less than one) and the fraction Y/L(R,Y) rises. Thus, velocity rises with either an increase in the interest rate or an increase in income. Since an increase in interest rates as well as an increase in income cause the exchange rate to appreciate, an increase in velocity is associated with an appreciation of the exchange rate.4. An increase in domestic real GNP increases the demand for money at anynominal interest rate. This is reflected in figure 14-2 as an outward shift in the money demand function from L 1 to L 2. The effect of this is to raise domestic interest rates from R 1 to R 2 and to cause an appreciation of the domestic currency from E 1 to E 2.5. Just as money simplifies economic calculations within a country, use of avehicle currency for international transactions reduces calculation costs. More importantly, the more currencies used in trade, the closer the trade becomes to barter, since someone who receives payment in a currency she does not need must then sell it for a currency she needs. This process is much less costly when there is a ready market in which any nonvehicle currency can be traded against the vehicle currency, which then fulfills the role of a generally accepted medium of exchange.REE 1E 2Figure 14-26. Currency reforms are often instituted in conjunction with other policies whichattempt to bring down the rate of inflation. There may be a psychological effect of introducing a new currency at the moment of an economic policy regime change, an effect that allows governments to begin with a "clean slate" and makes people reconsider their expectations concerning inflation. Experience shows, however, that such psychological effects cannot make a stabilization plan succeed if it is not backed up by concrete policies to reduce monetary growth.7. The interest rate at the beginning and at the end of this experiment are equal.The ratio of money to prices (the level of real balances) must be higher when full employment is restored than in the initial state where there isunemployment: the money-market equilibrium condition can be satisfied only with a higher level of real balances if GNP is higher. Thus, the price level rises, but by less than twice its original level. If the interest rate were initially below its long-run level, the final result will be one with higher GNP and higher interest rates. Here, the final level of real balances may be higher or lower than the initial level, and we cannot unambiguously state whether the price level has more than doubled, less than doubled, or exactly doubled.8. The 1984 - 1985 money supply growth rate was 12.4 percent in the UnitedStates (100%*(641.0 - 570.3)/570.3) and 334.8 percent in Brazil (100%*(106.1 - 24.4)/24.4). The inflation rate in the United States during this period was 3.5 percent and in Brazil the inflation rate was 222.6 percent. The change in real money balances in the United States was approximately 12.4% - 3.5% = 8.9%, while the change in real money balances in Brazil was approximately 334.8% - 222.6% = 112.2%. The small change in the U.S. price level relative to the change in its money supply as compared to Brazil may be due to greater short-run price stickiness in the United States; the change in the price level in the United States represents 28 percent of the change in the money supply ((3.5/12.4)*100%) while in Brazil this figure is 66 percent ((222.6/334.8) *100%). There are, however, large differences between the money supply growth and the growth of the price level in both countries, which casts doubt on the hypothesis of money neutrality in the short run for both countries.9. Velocity is defined as real income divided by real balances or, equivalently,nominal income divided by nominal money balances (V=P*Y/M). Velocity in Brazil in 1985 was 13.4 (1418/106.1) while velocity in the United States was6.3 (4010/641). These differences in velocity reflected the different costs ofholding cruzados compared to holding dollars. These different costs were due to the high inflation rate in Brazil which quickly eroded the value of idle cruzados, while the relatively low inflation rate in the United States had a much less deleterious effect on the value of dollars.RE(M 1E 3E 2E 1(M 2E 4Figure 14-310. If an increase in the money supply raises real output in the short run, then thefall in the interest rate will be reduced by an outward shift of the money demand curve caused by the temporarily higher transactions demand for money. In figure 14-3, the increase in the money supply line from (M 1/P) to (M 2/P) is coupled with a shift out in the money demand schedule from L 1 to L 2. The interest rate falls from its initial value of R 1 to R 2, rather than to the lower level R 3, because of the increase in output and the resulting outward shift in the money demand schedule. Because the interest rate does not fall as much when output rises, the exchange rate depreciates by less: from its initial value of E 1 to E 2, rather than to E 3, in the diagram. In both cases we see the exchange rate appreciate back some to E4 in the long run. The difference is the overshoot is much smaller if there is a temporary increase in Y. Note, the fact that the increase in Y is temporary means that we still move to the same IP curve, as LR prices will still shift the same amount when Y returns to normal and we still have the same size M increase in both cases. A permanent increase in Y would involve a smaller expected price increase and a smaller shift in the IP curve.Undershooting occurs if the new short-run exchange rate is initially below its new long-run level. This happens only if the interest rate rises when the money supply rises – that is if GDP goes up so much that R does not fall, but increases. This is unlikely because the reason we tend to think that an increase in M may boost output is because of the effect of lowering interest rates, so we generally don’t think that the Y response can be so great as to increase R.。

克鲁格曼《国际经济学》（第8版）课后习题详解克鲁格曼《国际经济学》(第8版)课后习题详解第1章绪论本章不是考试的重点章节，建议读者对本章内容只作大致了解即可，本章没有相关的课后习题。

第1篇国际贸易理论第2章世界贸易概览一、概念题1>(发展中国家(developing countries)答:发展中国家是与发达国家相对的经济上比较落后的国家，又称“欠发达国家”或“落后国家”。

通常指第三世界国家，包括亚洲、非洲、拉丁美洲及其他地区的130多个国家。

衡量一国是否为发展中国家的具体标准有很多种，如经济学家刘易斯和世界银行均提出过界定发展中国家的标准。

一般而言，凡人均收入低于美国人均收入的五分之一的国家就被定义为发展中国家。

比较贫困和落后是发展中国家的共同特点。

2>(服务外包(service outsourcing)答:服务外包是指企业将其非核心的业务外包出去，利用外部最优秀的专业化团队来承接其业务，从而使其专注于核心业务，达到降低成本、提高效率、增强企业核心竞争力和对环境应变能力的一种管理模式。

20世纪90年代以来，随着信息技术的迅速发展，特别是互联网的普遍存在及广泛应用，服务外包得到蓬勃发展。

从美国到英国，从欧洲到亚洲，无论是中小企业还是跨国公司，都把自己有限的资源集中于公司的核心能力上而将其余业务交给外部专业公司，服务外包成为“发达经济中不断成长的现象”。

3>(引力模型(gravity model)答:丁伯根和波伊赫能的引力模型基本表达式为:其中，是国与国的贸易额，为常量，是国的国内生产总值，是国的国内生产总值，是两国的距离。

、、三个参数是用来拟合实际的经济数据。

引力模型方程式表明:其他条件不变的情况下，两国间的贸易规模与两国的GDP成正比，与两国间的距离成反比。

把整个世界贸易看成整体，可利用引力模型来预测任意两国之间的贸易规模。

另外，引力模型也可以用来明确国际贸易中的异常现象。

4>(第三世界(third world)答:第三世界这个名词原本是指法国大革命中的Third Estate(第三阶级)。

克鲁格曼《国际经济学》(国际金融)习题答案要点赤字。

因此，1982-1985年美国资本流入超过了其经常项目的赤字。

第13章 汇率与外汇市场：资产方法 1、汇率为每欧元1.5美元时，一条德国香肠bratwurst 等于三条hot dog 。

其他不变时，当美元升值至1.25$per Euro, 一条德国香肠bratwurst 等价于2.5个hot dog 。

相对于初始阶段，hot dog 变得更贵。

2、63、25%；20%；2%。

4、分别为：15%、10%、-8%。

5、（1）由于利率相等，根据利率平价条件，美元对英镑的预期贬值率为零，即当前汇率与预期汇率相等。

（2）1.579$per pound6、如果美元利率不久将会下调，市场会形成美元贬值的预期，即e E 值变大，从而使欧元存款的美元预期收益率增加，图13-1中的曲线I 移到I '，导致美元对欧元贬值，汇率从0E 升高到1E 。

131-图　7、（1）如图13-2，当欧元利率从0i 提高到1i 时，汇率从0E 调整到1E ，欧元相对于美元升值。

I 'IE 1E $/euroE图13-2（2）如图13-3，当欧元对美元预期升值时，美元存款的欧元预期收益率提高，美元存款的欧元收益曲线从I '上升到I ，欧元对美元的汇率从E '提高到E ，欧元对美元贬值。

133-图8、(a)如果美联储降低利率，在预期不变的情况下，根据利率平价条件，美元将贬值。

如图13-4，利率从i 下降到i ' ，美元对外国货币的汇价从E 提高到E '，美元贬值。

如果软着陆，并且美联储没有降低利率，则美元不会贬值。

即使美联储稍微降低利率，假如从i 降低到*i （如图13-5），这比人们开始相信会发生的还要小。

同时，由于软着陆所产生的乐观因素，使美元预期升值，即e E 值变小，使国外资产的美元预期收益率降低（曲线I 向下移动到I '），曲线移动反映了对美国软着陆引起的乐观预期，同时由乐观因素引起的预期表明：在没有预期变化的情况下，由利I 'E E 'euro/$E IiE 1E euro/$E rate of return(in euro)0i 1i率i 下降到*i 引起美元贬值程度（从E 贬值到*E ）将大于存在预期变化引起的美元贬值程度（从E 到E ''）。

国际经济学英⽂版（第⼋版）章节练习第⼀章International Economics, 8e (Krugman)Chapter 1 Introduction1.1 What Is International Economics About?1) Historians of economic thought often describe ________ written by ________ and published in ________ as the first real exposition of an economic model.A) ”Of the Balance of Trade,” David Hume, 1776B) ”Wealth of Nations,” David Hume, 1758C) ”Wealth of Nations,” Adam Smith, 1758D) ”Wealth of Nations,” Adam Smith, 1776E) ”Of the Balance of Trade,” David Hume, 1758Answer: E2) 2)Ancient theories of international economics from the 18th and 19th Centuries areA) not relevant to current policy analysis.B) are only of moderate relevance in today’s modern international economy.C) are highly relevant in today’s modern international economy.D) are the only theories that actually relevant to modern international economy.E) are not well understood by modern mathematically oriented theorists.Answer: C3) An important insight of international trade theory is that when countries exchange goods and services one with the other itA) is always beneficial to both countries.B) is usually beneficial to both countries.C) is typically beneficial only to the low wage trade partner country.D) is typically harmful to the technologically lagging country.E) tends to create unemployment in both countries.Answer: B4) If there are large disparities in wage levels between countries, thenA) trade is likely to be harmful to both countries.B) trade is likely to be harmful to the country with the high wages.C) trade is likely to be harmful to the country with the low wages.D) trade is likely to be harmful to neither country.E) trade is likely to have no effect on either country.Answer: D5) Who sells what to whomA) has been a major preoccupation of international economics.B) is not a valid concern of international economics.C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market.D) is determined by political rather than economic factors.E) None of the aboveAnswer: A6) The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed byA) Adam Smith.B) David Hume.C) David Ricardo.D) Eli Heckscher.E) Lerner and Samuelson. Answer: C7) The euro, a common currency for most of the nations of Western Europe, was introducedA) before 1900.B) before 1990.C) before 2000.D) in order to snub the pride of the U.S.E) None of the above.Answer: C8) For the 50 years preceding 1994, international trade policies have been governedA) by the World Trade Organization.B) by the International Monetary Fund.C) by the World.D) by an international treaty known as the General Agreement on Tariffs and Trade (GATT).E) None of the above.Answer: D9) The international capital market isA) the place where you can rent earth moving equipment anywhere in the world.B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future.C) the arrangement where banks build up their capital by borrowing from the Central Bank.D) the place where emerging economies accept capital invested by banks.E) None of the above.Answer: B10) Since 1994, trade rules have been enforced byA) the WTO.B) the G10.C) the GATT.D) The U.S. Congress.E) None of the above.Answer:A11) Cost-benefit analysis of international tradeA) is basically useless.B) is empirically intractable.C) focuses attention primarily on conflicts of interest within countries.D) focuses attention on conflicts of interests between countries.E) None of the above.Answer: C12) An improvement in a country’s balance of payments means a decrease in its balance of payments deficit, or an increase in its surplus. In fact we know that a surplus in a balance of paymentsA) is good.B) is usually good.C) is probably good.D) may be considered bad.E) is always bad.Answer: D13) The GATT wasA) an international treaty.B) an international U.N. agency.C) an international IMF agency.D) a U.S. government agency.E) a collection of tariffs.Answer: A14) International economics can be divided into two broad sub-fieldsA) macro and micro.B) developed and less developed.C) monetary and barter.D) international trade and international money.E) static and dynamic.Answer: DInternational Economics, 8e (Krugman)Chapter 2 World Trade: An Overview2.1 Who Trades with Whom?1) What percent of all world production of goods and services is exported to other countries?A) 10%B) 30%C) 50%D) 100%E) None of the above.Answer: B2) The gravity model offers a logical explanation for the fact thatA) trade between Asia and the U.S. has grown faster than NAFTA trade.B) trade in services has grown faster than trade in goods.C) trade in manufactures has grown faster than in agricultural products.D) Intra-European Union trade exceeds International Trade of the European Union.E) None of the above.Answer: D3) According to the gravity model, a characteristic that tends to affect the probability of trade existing betweenany two countries isA) their cultural affinity.B) the average weight/value of their traded goods.C) their colonial-historical ties.D) the distance between them.E) the number of varieties produced on the average by their industries.Answer: D4) Why does the gravity model work?A) Large economies became large because they were engaged in international trade.B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment.C) Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country.D) Large economies tend to have large incomes and tend to spend more on imports.E) None of the above.Answer: D5) The two neighbors of the United States do a lot more trade with the United States than European economiesof equal size.A) This contradicts predictions from gravity models.B) This is consistent with predictions from gravity models.C) This is relevant to any inferences that may be drawn from gravity models.D) This is because these neighboring countries have exceptionally large GDPs.E) None of the above.Answer: B6) Since World War II (the early 1950s), the proportion of most countries' production being used in some other countryA) remained constant.B) increased.C) decreased.D) fluctuated widely with no clear trend.E) both A and D above.Answer: B7) Since World War II, the relative importance of raw materials, including oil, in total world tradeA) remained constant.B) increased.C) decreased.D) fluctuated widely with no clear trendE) both A and D above.Answer: C8) In the current Post-Industrial economy, international trade in services (including banking and financial services)A) dominates world trade.B) does not exist.C) is relatively small.D) is relatively stagnant.E) None of the above.Answer: C9) In the pre-World War I period, the U.S. exported primarilyA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer: C10) In the pre-World War I period, the United Kingdom exported primarilyA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer:A11) In the present, most of the exports from China are inA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer: AInternational Economics, 8e (Krugman)Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model1) Trade between two countries can benefit both countries ifA) each country exports that good in which it has a comparative advantage.B) each country enjoys superior terms of trade.C) each country has a more elastic demand for the imported goods.D) each country has a more elastic supply for the exported goods.E) Both C and D.Answer: A2) In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ________ unit labor requirementsA) oneB) twoC) threeD) fourE) fiveAnswer: D3) A country engaging in trade according to the principles of comparative advantage gains from trade because itA) is producing exports indirectly more efficiently than it could alternatively.B) is producing imports indirectly more efficiently than it could domestically.C) is producing exports using fewer labor units.D) is producing imports indirectly using fewer labor units.E) None of the above.Answer: B4) Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A5) Given the information in the table above, if the Home economy suffered a meltdown, and theUnit Labor Requirements doubled to 30 for cloth and 60 for widgets then home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A6) The earliest statement of the principle of comparative advantage is associated withA) David Hume.B) David Ricardo.C) Adam Smith.D) Eli Heckscher.E) Bertil Ohlin.Answer: B7) The Gains from Trade associated with the principle of Comparative Advantage depends onA) the trade partners must differ in technology or tastes.B) there can be no more goods traded than the number of trade partners.C) there may be no more trade partners than goods traded.D) All of the above.E) None of the above.Answer: A8) The Ricardian model demonstrates thatA) trade between two countries will benefit both countries.B) trade between two countries may benefit both regardless of which good each exports.two countries may benefit both if each exports the product in which it has a comparative advantage. C)trade betweenD) trade between two countries may benefit one but harm the other.E) None of the above.Answer: C9) Given the information in the table aboveA) neither country has a comparative advantage.B) Home has a comparative advantage in cloth.C) Foreign has a comparative advantage in cloth.D) Home has a comparative advantage in widgets.E) Home has a comparative advantage in both products.Answer: B10) Given the information in the table above, if wages were to double in Home, then Home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A11) In a two product two country world, international trade can lead to increases inA) consumer welfare only if output of both products is increased.B) output of both products and consumer welfare in both countries.C) total production of both products but not consumer welfare in both countries.D) consumer welfare in both countries but not total production of both products.E) None of the above.Answer: B12) A nation engaging in trade according to the Ricardian model will find its consumption bundleA) inside its production possibilities frontier.B) on its production possibilities frontier.C) outside its production possibilities frontier.D) inside its trade-partner's production possibilities frontier.E) on its trade-partner's production possibilities frontier.Answer: C13) In the Ricardian model, if a country's trade is restricted, this will cause all except which?A) limit specialization and the division of laborB) reduce the volume of trade and the gains from tradeC) cause nations to produce inside their production possibilities curvesD) may result in a country producing some of the product of its comparative disadvantageE) None of the above.Answer: C14) If the world terms of trade for a country are somewhere between the domestic cost ratio of Hand that of F, thenA) country H but not country F will gain from trade.B) country H and country F will both gain from trade.C) neither country H nor F will gain from trade.D) only the country whose government subsidizes its exports will gain.E) None of the above.Answer: B15) According to Ricardo, a country will have a comparative advantage in the product in which itsA) labor productivity is relatively low.B) labor productivity is relatively high.C) labor mobility is relatively low.D) labor mobility is relatively high.E) None of the above.Answer: B16)Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan ifA) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.B) U.S. productivity equaled 30 units per hour whereas Japan's was 20.C) U.S. labor productivity equaled 20 and Japan's 30.D) U.S. labor productivity equaled 15 and Japan's 25 units per hour.E) None of the above.Answer: A17) Let us define the real wage as the purchasing power of one hour of labor. In the Ricardian 2X2 model, if twocountries under autarky engage in trade thenA) the real wage will not be affected since this is a financial variable.B) the real wage will increase only if a country attains full specialization.C) the real wage will increase in one country only if it decreases in the other.D) the real wage will rise in both countries.E) None of the above.Answer: D18) In a two country and two product Ricardian model, a small country is likely to benefit more than the largecountry becauseA) the large country will wield greater political power, and hence will not yield to market signals.B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices.C) the small country is more likely to fully specialize.D) the small country is less likely to fully specialize.E) None of the above.Answer: B19) An examination of the Ricardian model of comparative advantage yields the clear result thattrade is (potentially) beneficial for each of the two trading partners since it allows for anexpanded consumption choice for each. However, for the world as a whole the expansion ofproduction of one product must involve a decrease in the availability of the other, so that it isnot clear that trade is better for the world as a whole as compared to an initial situation ofnon-trade (but efficient production in each country). Are there in fact gains from trade for theworld as a whole? Explain.Answer: If we were to combine the production possibility frontiers of the two countries to create a single world production possibility frontier, then it is true that any change in production points (from autarky tospecialization with trade) would involve a tradeoff of one good for another from the world'sperspective. In other words, the new solution cannot possibly involve the production of more of bothgoods. However, since we know that each country is better off at the new solution, it must be true thatthe original points were not on the trade contract curve between the two countries, and it was in factpossible to make some people better off without making others worse off, so that the new solutiondoes indeed represent a welfare improvement from the world's perspective.20）Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign? Answer: One half a widget.21) Given the information in the table above. If these two countries trade these two goods in the context of the Ricardian model of comparative advantage, then what is the lower limit of the world equilibrium price of widgets? Answer: 1/2 Cloths.22) Given the information in the table above. If these two countries trade these two goods with each other incontext of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth? Answer: One half a widget.23) Given the information in the table above. What is the opportunity cost of cloth in terms of Widgets inForeign?Answer: 2 widgets.24) If a production possibilities frontier is bowed out (concave to the origin), then production occurs underconditions ofA) constant opportunity costs.B) increasing opportunity costs.C) decreasing opportunity costs.D) infinite opportunity costs.E) None of the above.Answer: B25) If the production possibilities frontier of one the trade partners ("Country A") is bowed out (concave to theorigin), then increased specialization in production by that country willA) increase the economic welfare of both countries.B) increase the economic welfare of only Country A.C) decrease the economic welfare of Country A.D) decrease the economic welfare of Country B.E) None of the above.Answer: A26)If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios), thenA) it is not possible that producers in each will find export markets profitable.B) it is not possible that consumers in both countries will enhance their respective welfares throughimports.C) it is not possible that both countries will find gains from trade.D) it is possible that both will enjoy the conventional gains from trade.E) None of the above.Answer: D27) In a two-country, two-product world, the statement "Germany enjoys a comparative advantageover France in autos relative to ships" is equivalent toA) France having a comparative advantage over Germany in ships.B) France having a comparative disadvantage compared to Germany in autos and ships.C) Germany having a comparative advantage over France in autos and ships.D) France having no comparative advantage over Germany.E) None of the above.Answer: A28) Suppose the United states production possibility frontier was flatter to the widget axis, whereasGermany's was flatter to the butter axis. We now learn that the German wage doubles, but U.S.wages do not change at all. We now know thatA) the United States has no comparative advantage.B) Germany has a comparative advantage in butter.C) the United States has a comparative advantage in butter.D) Not enough information is given.E) None of the above.Answer: B29) We know that in antiquity, China exported silk because no-one in any other country knew how to producethis product. From this information we learn thatA) China enjoyed a comparative advantage in silk.B) China enjoyed an absolute advantage, but not a comparative advantage in silk.C) no comparative advantage exists because technology was not diffused.D) China should have exported silk even though it had no comparative advantage.E) None of the above.Answer: A30) The evidence cited in the chapter using the examples of the East Asia New IndustrializingCountries suggests that as international productivities converge, so do international wage levels.Why do you suppose this happened for the East Asian NICs? In light of your answer, what doyou think is likely to happen to the relative wages (relative to those in the United States) ofChina in the coming decade? Explain your reasoning.Answer: Following the logic of the Ricardian model of comparative advantage, the East Asian countries played to their respective comparative advantages. This allowed the world demand to provide excessdemands for their relatively abundant labor, which in turn tended to raise these wages. If Chinafollows the same pattern, their wages levels should also be expected over time to converge to those intheir industrialized country markets.Answers to Textbook Problems1. a. The production possibility curve is a straight line that intercepts the apple axis at 400(1200/3)and the banana axis at 600(1200/2).b. The opportunity cost of apples in terms of bananas is 3/2. It takes three units of labor toharvest an apple but only two units of labor to harvest a banana. If one foregoes harvesting an apple,this frees up three units of labor. These 3 units of labor could then be used to harvest 1.5 bananas.c. Labor mobility ensures a common wage in each sector and competition ensures the price ofgoods equals their cost of production. Thus, the relative price equals the relative costs, which equalsthe wage times the unit labor requirement for apples divided by the wage times the unit laborrequirement for bananas. Since wages are equal across sectors, the price ratio equals the ratio of the unit labor requirement, which is 3 apples per 2 bananas. 2. a. The production possibility curve is linear, with the intercept on the apple axis equal to 160(800/5) and the intercept on the banana axis equal to 800(800/1).b. The world relative supply curve is constructed by determining the supply of apples relative to the supply of bananas at each relative price. The lowest relative price at which apples are harvested is 3 apples per 2 bananas. The relative supply curve is flat at this price. The maximum number of apples supplied at the price of 3/2 is 400 supplied by Home while, at this price, Foreign harvests 800 bananas and no apples, giving a maximum relative supply at this price of 1/2. This relative supply holds for any price between 3/2 and 5. At the price of 5, both countries would harvest apples. The relative supply curve is again flat at 5. Thus, the relative supply curve is step shaped, flat at the price 3/2 from the relative supply of 0 to 1/2, vertical at the relative quantity 1/2 rising from 3/2 to 5, and then flat again from 1/2 to infinity.International Economics, 8e (Krugman)Chapter 4 Resources, Comparative Advantage, and Income Distribution1) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border wouldA) move the point of production along the production possibility curve.B) shift the production possibility curve outward, and increase the production of both goods.C) shift the production possibility curve outward and decrease the production of the labor-intensiveproduct.D) shift the production possibility curve outward and decrease the production of the capital-intensiveproduct.E) None of the above.Answer: D2) In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA) tastes.B) military capabilities.C) size.D) relative availabilities of factors of production.E) labor productivities.Answer: D3) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the formerA) has only two countries.B) has only two products.C) has two factors of production.D) has two production possibility frontiers (one for each country).E) None of the above.Answer: C4) "A good cannot be both land- and labor-intensive." Discuss.Answer: In a two good, two factor model, such as the original Heckscher-Ohlin framework, the factorintensities are relative intensities. Hence, the relevant statistic is either workers per acre (or acres perworker); or wage per rental unit (or rental per wage). In order to illustrate the logic of the statementabove, let us assume that the production of a broom requires 4 workers and 1 acre. Also, let us assumethat the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres perperson required to produce a broom is one quarter, whereas to produce a bushel of wheat requires 2 acres per person. The wheat is therefore (relatively) land intensive, and the broom is (relatively) labor intensive.5) "No country is abundant in everything." Discuss.Answer: The concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than doesthe other country. If one country has more capital worker than another, it is an arithmeticimpossibility that it also has more workers per unit capital.6) Refer to above figure. Can you guess which group of producers in Country P might lobby against free trade? Answer:In Country P, the owners of the relatively scarce factor of production are the owners of capital. Their relative and realincomes will decrease, and so they may well attempt to lobby for protectionism, which may prevent the country frommoving to a free trade equilibrium.An Economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:7) Refer to the table above.(a) Graph the production functions for good 1 and good 2(b) Graph the production possibility frontier. Why is it curved?Answer: The production possibility frontier is curved because of the diminishing returns associated with the expansion of output in the short run in each of the two industries.8) In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit theowners ofA) capital.B) the relatively abundant factor of production.C) the relatively scarce factor of production.D) the relatively inelastic factor of production.E) the factor of production with the largest elasticity of substitution.Answer: B9) According to the Heckscher-Ohlin model, the source of comparative advantage is a country'sA) technology.B) advertising.C) human capital.D) factor endowments.E) Both A and B.Answer: D10) The Hechscher-Ohlin model states that a country will have a comparative advantage in the good or servicewhose production is relatively intensive in the ________ with which the country is relatively abundant.A) tastesB) technologyC) factor of productionD) opportunity costE) scale economyAnswer: C11) According to the Hecksher-Ohlin model,A) everyone automatically gains from trade.B) the scarce factor necessarily gains from trade.C) the gainers could compensate the losers and still retain gains.D) a country gains if its exports have a high value added.E) None of the above.Answer:CAssume that only two countries, A and B, exist.12) Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory,A) country A will export good S.B) country B will export good S.C) both countries will export good S.D) trade will not occur between these two countries.E) Insufficient information is given.Answer: B13) In international-trade equilibrium in the Heckscher-Ohlin model,A) the capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.B) the capital rich country will charge the same price for the capital intensive good as that paid for it by the capital poor country.C) the capital rich country will charge more for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.D) the workers in the capital rich country will earn more than those in the poor country.E) the workers in the capital rich country will earn less than those in the poor country.Answer: B14) The Heckscher-Ohlin model predicts all of the following exceptA) which country will export which product.B) which factor of production within each country will gain from trade.C) the volume of trade.D) that wages will tend to become equal in both trading countries.。

Chapter 8The Instruments of Trade PolicyChapter OrganizationBasic Tariff AnalysisSupply, Demand, and Trade in a Single IndustryEffects of a TariffMeasuring the Amount of ProtectionCosts and Benefits of a TariffConsumer and Producer SurplusMeasuring the Costs and BenefitsOther Instruments of Trade PolicyExport Subsidies: TheoryCase Study: Europe’s Common Agricultural PolicyImport Quotas: TheoryCase Study: An Import Quota in Practice: U.S. SugarVoluntary Export RestraintsCase Study: A Voluntary Export Restraint in Practice: Japanese Autos Local Content RequirementsBox: American Buses, Made in HungaryOther Trade Policy InstrumentsThe Effects of Trade Policy: A SummarySummaryAppendix I: Tariff Analysis in General EquilibriumA Tariff in a Small CountryA Tariff in a Large CountryAppendix II: Tariffs and Import Quotas in the Presence of Monopoly The Model with Free TradeThe Model with a TariffThe Model with an Import QuotaComparing a Tariff with a QuotaChapter 8 The Instruments of Trade Policy 33Chapter OverviewThis chapter and the next three focus on international trade policy. Students will have heard various arguments for and against restrictive trade practices in the media. Some of these arguments are sound and some are clearly not grounded in fact. This chapter provides a framework for analyzing the economic effects of trade policies by describing the tools of trade policy and analyzing their effects on consumers and producers in domestic and foreign countries. Case studies discuss actual episodes of restrictive trade practices. An instructor might try to underscore the relevance of these issues by having students scan newspapers and magazines for other timely examples of protectionism at work.The analysis presented here takes a partial equilibrium view, focusing on demand and supply in one market, rather than the general equilibrium approach followed in previous chapters. Import demand and export supply curves are derived from domestic and foreign demand and supply curves. There are a number of trade policy instruments analyzed in this chapter using these tools. Some of the important instruments of trade policy include specific tariffs, defined as taxes levied as a fixed charge for each unit of a good imported; ad valorem tariffs, levied as a fraction of the value of the imported good; export subsidies, which are payments given to a firm or industry that ships a good abroad; import quotas, which are direct restrictions on the quantity of some good that may be imported; voluntary export restraints, which are quotas on trading that are imposed by the exporting country instead of the importing country; and local content requirements, which are regulations that require that some specified fraction of a good is produced domestically.The import supply and export demand analysis demonstrates that the imposition of a tariff drives a wedge between prices in domestic and foreign markets, and increases prices in the country imposing the tariff and lowers the price in the other country by less than the amount of the tariff. This contrasts with most textbook presentations which make the small country assumption that the domestic internal price equals the world price times one plus the tariff rate. The actual protection provided by a tariff willnot equal the tariff rate if imported intermediate goods are used in the production of the protected good. The proper measurement, the effective rate of protection, is described in the text and calculated for a sample problem.The analysis of the costs and benefits of trade restrictions require tools of welfare analysis. The text explains the essential tools of consumer and producer surplus. Consumer surplus on each unit sold is defined as the difference between the actual price and the amount that consumers would have been willing to pay for the product. Geometrically, consumer surplus is equal to the area under the demand curve and above the price of the good. Producer surplus is the difference between the minimum amount for which a producer is willing to sell his product and the price which he actually receives. Geometrically, producer surplus is equal to the area above the supply curve and below the price line. These tools are fundamental to the student’s understanding of the implications of trade polici es and should be developed carefully. The costs of a tariff include distortionary efficiency losses in both consumption and production. A tariff provides gains from terms of trade improvement when and if it lowers the foreign export price. Summing the areas in a diagram of internal demand and supply provides a method for analyzing the net loss or gain from a tariff.Other instruments of trade policy can be analyzed with this method. An export subsidy operates in exactly the reverse fashion of an import tariff. An import quota has similar effects as an import tariff upon prices and quantities, but revenues, in the form of quota rents, accrue to foreign producers of the protected good. Voluntary export restraints are a form of quotas in which import licenses are held by foreign governments. Local content requirements raise the price of imports and domestic goods and do not result in either government revenue or quota rents.34 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionThroughout the chapter the analysis of different trade restrictions are illustrated by drawing upon specific episodes. Europe’s common agricultural policy provides and example of export subsidies in action. The case study corresponding to quotas describes trade restrictions on U.S. sugar imports. Voluntary export restraints are discussed in the context of Japanese auto sales to the United States. The oil import quota in the United States in the 1960’s provides an example of a local content scheme.There are two appendices to this chapter. Appendix I uses a general equilibrium framework to analyze the impact of a tariff, departing from the partial equilibrium approach taken in the chapter. When a small country imposes a tariff, it shifts production away from its exported good and toward the imported good. Consumption shifts toward the domestically produced goods. Both the volume of trade and welfare of the country decline. A large country imposing a tariff can improve its terms of trade by an amount potentially large enough to offset the production and consumption distortions. For a large country, a tariff may be welfare improving.Appendix II discusses tariffs and import quotas in the presence of a domestic monopoly. Free trade eliminates the monopoly power of a domestic producer and the monopolist mimics the actions of a firm in a perfectly competitive market, setting output such that marginal cost equals world price. A tariff raises domestic price. The monopolist, still facing a perfectly elastic demand curve, sets output such that marginal cost equals internal price. A monopolist faces a downward sloping demand curve under a quota.A quota is not equivalent to a tariff in this case. Domestic production is lower and internal price higher when a particular level of imports is obtained through the imposition of a quota rather than a tariff.Answers to Textbook Problems1. The import demand equation, MD, is found by subtracting the home supply equation from the homedemand equation. This results in MD= 80 - 40 ⨯P. Without trade, domestic prices and quantities adjust such that import demand is zero. Thus, the price in the absence of trade is 2.2. a. Foreign’s export supply curve, XS, is XS=-40 + 40⨯P. In the absence of trade, the price is 1.b. When trade occurs, export supply is equal to import demand, XS=MD. Thus, using theequations from Problems 1 and 2a, P= 1.50, and the volume of trade is 20.3. a. The new MD curve is 80 - 40 ⨯ (P+ t) where t is the specific tariff rate, equal to 0.5. (Note: Insolving these problems, you should be careful about whether a specific tariff or ad valorem tariff is imposed. With an ad valorem tariff, the MD equation would be expressed as MD= 80 - 40 ⨯(1 + t)P.) The equation for the export supply curve by the foreign country is unchanged. Solving,we find that the world price is $1.25, and thus the internal price at home is $1.75. The volume of trade has been reduced to 10, and the total demand for wheat at home has fallen to 65 (from thefree trade level of 70). The total demand for wheat in Foreign has gone up from 50 to 55.b. andc. The welfare of the home country is best studied using the combined numerical andgraphical solutions presented below in Figure 8.1.Figure 8.1Chapter 8 The Instruments of Trade Policy 35where the areas in the figure are:a.55(1.75 - 1.50) -0.5(55 - 50)(1.75 - 1.50) = 13.125b. 0.5(55 - 50)(1.75 - 1.50) = 0.625c. (65 - 55)(1.75 - 1.50) = 2.50d. 0.5(70 - 65)(1.75 - 1.50) = 0.625e. (65 - 55)(1.50 - 1.25) = 2.50Consumer surplus change: -(a+ b+ c+ d) =-16.875. Producer surplus change: a= 13.125.Government revenue change: c+ e= 5. Efficiency losses b+ d are exceeded by terms of tradegain e. (Note: In the calculations for the a, b, and d areas, a figure of 0.5 shows up. This isbecause we are measuring the area of a triangle, which is one-half of the area of the rectangledefined by the product of the horizontal and vertical sides.)4. Using the same solution methodology as in Problem 3, when the home country is very small relativeto the foreign country, its effects on the terms of trade are expected to be much less. The smallcountry is much more likely to be hurt by its imposition of a tariff. Indeed, this intuition is shown in this problem. The free trade equilibrium is now at the price $1.09 and the trade volume is now$36.40.With the imposition of a tariff of 0.5 by Home, the new world price is $1.045, the internal home price is $1.545, home demand is 69.10 units, home supply is 50.90, and the volume of trade is 18.20.When Home is relatively small, the effect of a tariff on world price is smaller than when Home is relatively large. When Foreign and Home were closer in size, a tariff of 0.5 by home lowered world price by 25 percent, whereas in this case the same tariff lowers world price by about 5 percent. The internal Home price is now closer to the free trade price plus t than when Home was relatively large.In this case, the government revenues from the tariff equal 9.10, the consumer surplus loss is 33.51, and the producer surplus gain is 21.089. The distortionary losses associated with the tariff (areas b+ d) sum to 4.14 and the terms of trade gain (e) is 0.819. Clearly, in this small country example, the distortionary losses from the tariff swamp the terms of trade gains. The general lesson is the smaller the economy, the larger the losses from a tariff since the terms of trade gains are smaller.5. ERP = (200 ⨯ 1.50 - 200)/100 = 100%6. The effective rate of protection takes into consideration the costs of imported intermediate goods.Here, 55% of the cost can be imported, suggesting with no distortion, home value added would be 45%. A 15% increase in the price of ethanol, though, means home value added could be as high as 60%. Effective rate of protection = (V t-V w)/V w, where V t is the value added in the presence of trade policies, and V w is the value added without trade distortions. In this case, we have (60 - 45)/45 = 33% effective rate of protection.7. We first use the foreign export supply and domestic import demand curves to determine the newworld price. The foreign supply of exports curve, with a foreign subsidy of 50 percent per unit,becomes XS=-40 + 40(1 + 0.5) ⨯P. The equilibrium world price is 1.2 and the internal foreign price is 1.8. The volume of trade is 32. The foreign demand and supply curves are used to determine the costs and benefits of the subsidy. Construct a diagram similar to that in the text and calculate the area of the various polygons. The government must provide (1.8 - 1.2)⨯ 32 = 19.2 units of output to support the subsidy. Foreign producers surplus rises due to the subsidy by the amount of 15.3 units of output. Foreign consumers surplus falls due to the higher price by 7.5 units of the good. Thus, the net loss to Foreign due to the subsidy is 7.5 + 19.2 - 15.3 = 11.4 units of output. Home consumers and producers face an internal price of 1.2 as a result of the subsidy. Home consumers surplus rises by 70 ⨯ 0.3 + 0.5 (6⨯ 0.3) = 21.9, while Home producers surplus falls by 44 ⨯ 0.3 + 0.5(6 ⨯ 0.3) =14.1, for a net gain of 7.8 units of output.36 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Edition8. a. False, unemployment has more to do with labor market issues and the business cycle than withtariff policy.b. False, the opposite is true because tariffs by large countries can actually reduce world priceswhich helps offset their effects on consumers.c. This kind of policy might reduce automobile production and Mexico, but also would increase theprice of automobiles in the United States, and would result in the same welfare loss associatedwith any quota.9. At a price of $10 per bag of peanuts, Acirema imports 200 bags of peanuts. A quota limiting theimport of peanuts to 50 bags has the following effects:a. The price of peanuts rises to $20 per bag.b. The quota rents are ($20 - $10) ⨯ 50 = $500.c. The consumption distortion loss is 0.5 ⨯ 100 bags ⨯ $10 per bag = $500.d. The production distortion loss is 0.5 ⨯ 50 bags ⨯ $10 per bag = $250.10. The reason is largely that the benefits of these policies accrue to a small group of people and thecosts are spread out over many people. Thus, those that benefit care far more deeply about these policies. These typical political economy problems associated with trade policy are probably even more troublesome in agriculture, where there are long standing cultural reasons for farmers andfarming communities to want to hold onto their way of life, making the interests even moreentrenched than they would normally be.11. It would improve the income distribution within the economy since wages in manufacturing wouldincrease, and real incomes for others in the economy would decrease due to higher prices formanufactured goods. This is true only under the assumption that manufacturing wages are lower than all others in the economy. If they were higher than others in the economy, the tariff policies would worsen the income distribution.。

international（国际经济学）课后习题及答案----------------------- Page 1-----------------------Review Questions and Condensed Answers forInternational Trade TheoriesChapter 1 World Trade and the National EconomyReview Questions::::1( What features distinguish international from domestic transactions?2( What can you say about the growth of world trade in both nominal and real terms? Was itfaster than the growth of output?3( Evaluate the statement,” the United States is a closed economy, hence foreign trade is ofno consequence to it.”4( Distinguish between export industries, import-competing industries and nontraded goods.Give examples of each.5( Using the figure in table 1-3, what can you say about the trade structure of the USA andJapan.Condensed Answers to Review Questions::::1. The text discusses ways that international transactions differfrom domestic ones.i. International trade requires that transactions be conductedbetween twocurrencies mediated by an exchange rate. Domestic transactions are conductedin a single currency.ii. Commercial policies that operate to restrict international transactions cannot, ingeneral, be imposed on domestic trade. Such policies include tariffs, quotas,voluntary export restraints, export subsidies, and exchange controls.iii. Countries pursue different domestic macroeconomic policieswhich result indivergent rates of economic growth, inflation, and unemployment.iv. More statistical data exist on the nature, volume, and value of internationaltransactions than exist in domestic trade.v. Factors of production are more mobile domestically than internationally.vi. Countries exhibit different demand patterns, sales techniques,and marketingrequirements. Many of these are due to culture and custom. Someresult fromdifferences in government regulations. Included here are health, safety,environmental, and technical rules.2. The real volume of world exports grew at an annual rate of more than 6 percent between1950 and 2000. Global output grew at an annual rate of 4 percent. Export growth inexcess of output growth reflects the increased openness to trade of many countries.3. The United States is a relatively closed economy since the share of trade in GDP issmaller than that of most other industrial nations. In 2000, U.S. exports of goods andservices were 11 percent of GDP. The U.S. economy is less dependent on the foreignsector than other major economies, but to say that foreign trade is of no consequence is anexaggeration. The U.S. economy has become increasingly open and, therefore, moreimpacted by trade developments over time. This trend is likely to continue. Curtailingimports would, for example, have a big effect on consumers' ability to buy some goods----------------------- Page 2-----------------------(e.g. tropical products) and would raise the prices of others. The absence of certain keycommodities and material inputs would greatly disrupt areas of U.S. industry.4. a. Export industries send a substantial share of their output abroad. Ratios ofexports to GDP are much higher than the average ratio for all industries. Netexporting industries are those for which exports exceed imports. U.S. netexporting industries include farm products, chemicals, certain types of machinery,and aerospace products.b. Import-competing industries are domestic industries that sharethe domesticmarket with a substantial import presence. These activities haveratios ofimports to GDP that are much higher than the average ratio for all industries.U.S. import-competing industries include fuels, automobiles,clothing, footwear,and iron and steel.c. Nontraded goods are those which, because of their nature and characteristics, arenot easily exported or imported. Examples are hair-dressing, movie theaters,meals, construction activity, and health-care.5. Table 1.3 contains figures on the trade structure of the U.S. and Japan. The U.S. is a netexporter of food, certain ores, chemicals, and other machinery and transport equipment,and is a net importer of raw materials, mining products, fuels, nonferrous metals, iron andsteel, semimanufactures, office and telecommunications equipment, automotive products,textiles and clothing, and other consumer goods. Japan is a net exporter of iron and steel,chemicals, semimanufactures, office and telecommunications equipment, automotiveproducts, other machinery and transport equipment, and other consumer goods. Importsexceed exports in food, raw materials, and textiles and clothing.----------------------- Page 3-----------------------Chapter 2 Why Nations TradeReview Questions::::1( a. In what sense are the cost data of footnote 4 related to the figures of scheme 1?b. Based on the figures of footnote 4, determine the:Direction of trade once it develops.Limits to mutually beneficial trade.Limits to a sustainable exchange trade.2. Evaluate the following statements:a. In international trade, domestic cost ratios determine the limits of mutually beneficial trade,whereas demand considerations show where, within these limits, the actual exchange ratio will lie.b. Comparative advantage is a theoretical concept. It cannot be used to explain any real-worldphenomena.c. The opening up of trade raises the price of export goods; hence trade is inflationary.d. The concept of absolute advantage offers explainations for East Germany’s high unemploymentrates in the 1990s.3. a. Use the theory of comparative advantage to explain why it pays for:The USA to export grains and import oil.Russia to export oil and import grains.b. Why does the popular press believe that grain exports are inflnationary? What is wrongwith this porposition?Condensed Answers to Review Questions:1. a. Scheme 1 is based on labor productivity comparisons, while Footnote 4presentsper unit cost data. Production cost ratios are inversely related to productivitymeasures.b. i. Textiles will be exported from the U.K. and wheat from the U.S.ii. The U.S. will trade only if one yard of textiles costs less than3 bushels ofwheat. The U.K. will trade only if 1 yard of textiles can be exchangedfor more than 2 bushels of wheat.iii. The value of the ? must be between $1 and $1.502. a. Consider Figure 2.2. The domestic cost ratios define limits of mutually beneficialtrade. Within the region of mutually beneficial trade the actual exchange rate willbe determined by the relative intensity of each country's demand for the othercountry's product. A full analysis requires an understanding of reciprocal demandcurves, but the following general principle might help heuristically. If the Britishare more eager to buy U.S. wheat than the Americans are eager for British textiles,the exchange ratio falls close to the U.K. domestic cost ratio and the U.S. can beviewed as capturing a greater share of the gains from trade.b. Since the real world does not conform to the convenienttwo-country, two-goodassumptions, the simple theoretical model is not immediately applicable.However, we can generalize the model to many goods and many nations. Thefundamental truth remains. Countries export those goods in which their relativeproduction costs are lower and import those goods for which the relative costs arehigher.----------------------- Page 4-----------------------c. While trade tends to raise the prices of exportables in the domestic economy, theeffect of trade is to lower the average price level of all goods. Trade givesconsumers an opportunity to consume at lower world prices. Many goods will becheaper when purchased from foreign supply sources. Trade also conveysprocompetitive effects, stimulates the adoption of new technologies, and allowsfirms to achieve efficient scale production levels. Thus, trade is anti-inflationary.d. The reunification of the Germany economy in 1990 was undertaken on the basisthat a unit of the deutschmark, the West German currency, should be equal in valueto a unit of the ostmark, the East German currency. At this exchange rate, goodsproduced in East Germany were almost universally more expensive to producethan their counterparts in the West. Labor productivity in East Germanmanufacturing was found to be about 35% of the West German level. Underthese conditions the East German manufacturing sector collapsed. Investors werereluctant to purchase East German factories and large scale closures and dismissalsresulted.3. a. The U.S. enjoys a comparative advantage in grains. It also produces oil, but will gain byspecializing in grain production and using proceeds of exported agriculturalproducts to purchase oil from nations that produce oil relatively more efficiently.Russia is relatively more efficient in the production of oil and will gain bypurchasing grain from the U.S. in exchange for oil.b. The popular press asserts that by exporting grain from the U.S. (say to the former U R)we are lowering the domestic supply of grain and raising the domestic U.S. price of grain. Sincegrain is an important ingredient in many food products, grain exports are believed to increase theprice of those products. However, the price of grain is determined in world markets. U.S.exports alone cannot permanently raise the domestic U.S. price. If the domestic U.S. grainpricerose above the world price, the U.S. would be a net importer of grains and the domestic price wouldfall.----------------------- Page 5-----------------------Chapter 3 The Commodity Composition of TradeReview Questions::::1( Does the factor proportions theory provide a good explanation of intraindustry trade? Ifnot, can you outline an alternative explaination for the growing phenomenon?2( Explain the dynamic nature of comparative advantage using Japan’s experience as anexample.3( Once the United States acquires a comparative advantage in jet aircraft production it canbe sure of a dominant position in the global market forever. Do you agree with thisstatement? Explain.Condensed Answers to Review Questions1. The factor proportions theory is better suited to explain interindustry trade, or the exchangebetween countries of totally different commodities, than intraindustry trade, which is thetwo-way trade of similar commodities. The growth of intraindustry trade is greatest inimperfectly competitive industries characterized by economies of scale. Here, scaleeconomies force firms in each industry to specialize in a narrow range of products withineach industry to achieve efficient scale operations. Intraindustry specialization combinedwith diverse consumer tastes gives rise to two-way trade within the same industryclassification.2. Japan's comparative advantage in the immediate post-war period was in labor intensivegoods. The high level of saving and investment transformed Japan into a relatively capitalabundant country. Its advantage in the labor-intensive industries was lost as wages rose.Moreover, Japan increased its technological capability through high spending on R&D.Now Japan's advantage lies in the production of high-tech, capital intensive goods similar tothe U.S. This in large part explains the increasing trade friction between the twocountries.3. Once the U.S. acquires a comparative advantage in jet aircraft, it is likely to enjoy a dominantposition in the global marketplace for years, but not forever. Jet aircraft production is characterizedby huge economies of scale due largely to research and development costs. High capitalrequirements and scale economies pose large entry barriers. It is extremely difficult for a countryto enter into aircraft production once the U.S. has the lead. The new firm would initially have asmall market share and would be unable to compete on a cost basis. The new market entrant wouldrequire considerable government support and encouragement. This was the case with the EuropeanAirbus.----------------------- Page 6-----------------------Chapter 4 Protection of Domestic Industries: The TariffReview Questions::::1( A tariff on textiles is equivalent to a tax on consumers and a subsidy to the textileproducers and workers.2( Explain the concept of effective rate of protection.a. What does the effective rate on final goods depend upon and how?b. In what way does the effective rate analysis help to illuminate these policy issues:Deepening of production in LDCsEscalation of tariff rates by degree of processing in industrial countries3. A tariff lowers the real income of the country, while at the same time it distributes income fromconsumers to the governments and to the import-competing industry.Condensed Answers to Review Questions:1. The effect of a tariff is comparable to the combined effects of a tax on consumers and a subsidy toproducers. Using Figure 4.3, one can show a tariff results in a transfer of resources from theconsumers (who lose P P fd ) to the producers (who gain P P ec). With a non-prohibitive tariff, the2 3 2 3government will also gain revenue efmn. Whether the two schemes are equivalent depends on theexact nature of the tax and subsidy scheme.2. a. The effective rate of protection measures the percentage increase in domesticvalue added per unit of output made possible by tariffs on the output and onmaterial inputs. Determinants of the effective rate include thetariff on the finalproduct, tariffs on the imported material inputs, and the free trade value added perunit of output which is influenced by intermediate input coefficients. Effectiverates are positively related to the tariff on the final product and negatively related toboth tariffs on imported inputs and the free trade value added. A derivation ofthe formula appears in footnote 10, and footnote 12 interprets that formula.b. "Deepening" of production in LDCs involves import substitution industrializationpolicy. A final assembly plant is given a protective tariff and imported inputs areaccorded duty free treatment. As a second stage, the LDC begins to deepenproduction by manufacturing inputs and according them protection. By imposingtariffs on imported inputs, the LDC is reducing effective protection for the finalgood.Because of relatively high rates of protection on finished goods and low protectionon unfinished goods and raw materials, effective tariff rates in developed countriesmay be as much as double their nominal counterparts. Developing countriesmaintain that such tariff structures fatally harm their efforts to increase exports offinished manufactures.3. Again using Figure4.3, the loss in real income is shown by triangles cen and mfd.Redistribution has been given in 8a.----------------------- Page 7-----------------------Chapter 5 Nontariff Barriers (NTBs) to TradeReview Question::::Suppose the USA steel industry is seeking protection from foreign imports. Compare andcontrast the following measures of restricting steel industries: a tariff, a quota, and voluntaryexport restraints.Condensed Answers to Review Question:There are a variety of ways in which a tariff may be considered to be less harmful than an equivalentquota:i. The revenue effect. Tariffs provide revenue. Quotas do not automatically providerevenue. Under a quota, revenue accrues to holders of import licenses.Depending on the quota scheme, licenses may be held by domestic importers, foreign exporters, foreign governments, or domestic officialswho may use them to encourage bribery. Only through auctioning or selling licenses can the government capture quota rents.ii. Performance under demand and supply changes. Any amount of imports can enterunder a tariff, but with a quota import volumes are fixed. When demandgrows, or there is a shortfall in supply, the quota does not permit a quantityadjustment. The domestic price can depart significantly from the worldprice. Under a tariff, the domestic price cannot rise above the worldprice by more than the tariff rate. Thus, a tariff is less harmful than aquota.iii. Impact on Exporters. When a tariff is levied on an imported good it is usually rebatedwhen the good is exported. The same is not true for a quota. Quotas maytherefore be more harmful to export performance.iv. Curbing monopoly power. Quotas curtail monopoly power less than an equivalent tariff.v. Terms of Trade Effects. Quotas provide no incentive for exporting nations to absorb partof the price increase; tariffs do if the exporting nation wishes to retainmarket share.vi. Quality Upgrading. Quotas give an incentive for the exporting country to engage in qualityupgrading. Ad valorem tariffs do not provide an incentive for this behavior but specific duties do.VERs share all of the undesirable effects of quotas. When the exporter does the restricting, there isno opportunity to sell import licenses. Quota rents accrue toforeign exporters orgovernments under a VER. Therefore, VERs are more costly to society than anequivalent quota with licenses sold or a tariff. Quantitative restrictions like VERsare discriminatory. VERs are also hard to monitor. Since shipments from thirdparty countries are unrestricted, transshipment throughnonrestricted countries is amajor problem. One advantage of VERs is they do not invite retaliation sincethey are profitable to foreign exporters and governments.Tariffs, quotas and VERs may be equivalent in terms of effects on the domestic price and thevolumeof imports. This may be shown using diagram 5-1. However, there are important differencesdiscussed in 1a. above.----------------------- Page 8-----------------------Chapter 6 International and Regional Trade Organizations Among Developed CountriesReview Questions::::1. Explain the following terms:Trade creation of a customs union.Trade diversion of a customs union.2.What are the conflicts between the WTO and the environmental movement?Condensed Answers to Review Questions:1. Trade creation refers to the replacement of high cost production in each member by importsfrom another member. This effect is favorable to world welfare. Tradediversion is the diversion of trade from a nonmember to a higher cost member.This is unfavorable because it reduces worldwide resource allocative efficiency(See Figure 4-8).The basic approach to calculating welfare effects associated with customs union formation is toconstruct hypothetical estimates of what member country trade patterns wouldhave been in the absence of integration, comparing these with actual trade flows,and attributing any difference to integration. Effects ofintegration can be isolatedby using trade flow data pertaining to nonmember "normalizer" countries over thesame period to suggest what trade patterns would have been expected for memberswithout integration. Assume, in the absence of integration, both total (internalplus external) and external member imports would have grown at the same rates asthe corresponding imports in the normalizer. The normalizer's external importsrefer to its imports from third countries (i.e. intra-trade is excluded). Thenormalizer's internal imports are imports of normalizer countries from each other(e.g. intra-trade). The preintegration member country total import level ismultiplied by the corresponding normalizer import growth rate to yield an estimateof hypothetical total imports without integration. When compared with actualtotal imports, an estimate of trade creation is obtained. Trade diversion isestimated by multiplying the member country preintegration external import levelby the normalizer's rate of change of external imports to yield hypothetical membercountry external imports. The excess of hypothetical over actual external importsconstitutes trade diversion. The European Union (EU) is a customs unioncomprised of 15 West European countries.2. WTO rules often conflict with both international environmental agreements and nationalenvironmental laws. For example, a 1991 GATT panel upheld a Mexican challenge to aU.S. law banning importation of tuna caught indolphin-killing purse-seine nets.GATT/WTO provisions are concerned with products and not production methods.----------------------- Page 9-----------------------Chapter 7 International Mobility of Productive FactorsReview Question::::What is the meaning of DFI? List some of the factors that induce companies to invest abroad.Condensed Answers to Review Question:Direct Foreign Investment refers to international capital movement that gives a company controlover a foreign subsidiary. It may be the purchase of an existing company, a substantial part of itsshares, or the establishment of a new enterprise. It should be contrasted with portfolio investmentthat gives, by and large, no control over foreign assets.The motives are diverse and any particular investment may involve one or more of the followingi. investment in extractive industries to secure raw material supplies;ii. investment in manufacturing industry to take advantage of cheaper foreign labor;iii. to locate production close to foreign markets and avoid transportation costs;iv. to take advantage of incentives offered by host countries;v. to circumvent tariff barriers;vi. changes in the exchange values of currencies; andvii. marketing considerations.。

Chapter 18The International Monetary System, 1870–1973?Chapter OrganizationMacroeconomic Policy Goals in an Open EconomyInternal Balance: Full Employment and Price-Level StabilityExternal Balance: The Optimal Level of the Current Account International Macroeconomic Policy under the Gold Standard, 1870–1914 Origins of the Gold StandardExternal Balance under the Gold StandardThe Price-Specie-Flow MechanismThe Gold Standard “Rules of the Game”: Myth and RealityBox: Hume v. the MercantilistsInternal Balance under the Gold StandardCase Study: The Political Economy of Exchange Rate Regimes:Conflict over America’s Monetary Standard During the 1890s The Interwar Years, 1918–1939The Fleeting Return to GoldInternational Economic DisintegrationCase Study: The International Gold Standard and the Great Depression The Bretton Woods System and the International Monetary Fund Goals and Structure of the IMFConvertibility and the Expansion of Private Capital FlowsSpeculative Capital Flows and CrisesAnalyzing Policy Options under the Bretton Woods SystemMaintaining Internal BalanceMaintaining External BalanceExpenditure-Changing and Expenditure-Switching PoliciesThe External-Balance Problem of the United StatesCase Study: The Decline and Fall of the Bretton Woods SystemWorldwide Inflation and the Transition to Floating Rates Summary?Chapter OverviewThis is the first of five international monetary policy chapters. These chapters complement the preceding theory chapters in several ways. They provide the historical and institutional background students require to place their theoretical knowledge in a useful context. The chapters also allow students, through study of historical and current events, to sharpen their grasp of the theoretical models and to develop the intuition those models can provide. (Application of the theory to events of current interest will hopefully motivate students to return to earlier chapters and master points that may have been missed on the first pass.)Chapter 18 chronicles the evolution of the international monetary system from the gold standard of1870–1914, through the interwar years, and up to and including the post-World War II Bretton Woods regime that ended in March 1973. The central focus of the chapter is the manner in which each system addressed, or failed to address, the requirements of internal and external balance for its participants.A country is in internal balance when its resources are fully employed and there is price level stability. External balance implies an optimal time path of the current account subject to its being balanced over the long run. Other factors have been important in the definition of external balance at various times, and these are discussed in the text. The basic definition of external balance as an appropriate current-account level, however, seems to capture a goal that most policy-makers share regardless of the particular circumstances.The price-specie-flow mechanism described by David Hume shows how the gold standard could ensure convergence to external balance. You may want to present the following model of the price-specie-flow mechanism. This model is based upon three equations: 1. The balance sheet of the central bank. At the most simple level, this is justgold holdings equals the money supply: G ? M.2. The quantity theory. With velocity and output assumed constant and bothnormalized to 1, this yields the simple equation M ? P.3. A balance of payments equation where the current account is a function of thereal exchange rate and there are no private capital flows: CA ? f(E ? P*/P)These equations can be combined in a figure like the one below. The 45? line represents the quantity theory, and the vertical line is the price level where the real exchange rate results in a balanced current account. The economy moves along the 45? line back towards the equilibrium Point 0 whenever it is out of equilibrium. For example, the loss of four-fifths of a country’s gold would put that country at Point a with lower prices and a lower money supply. The resulting real exchange rate depreciation causes a current account surplus which restores money balances as the country proceeds up the 45? line froma to 0.FigureThe automatic adjustment process described by the price-specie-flow mechanism is expedited by following “rules of the game” under which governments contract the domestic source components oftheir monetary bases when gold reserves are falling (corresponding to a current-account deficit) and expand when gold reserves are rising (the surplus case).In practice, there was little incentive for countries with expanding gold reserves to follow the “rules of the game.” This increased the contractionary burden shouldered by countries with persistent current account deficits. The gold standard also subjugated internal balance to the demands of external balance. Research suggests price-level stability and high employment were attained less consistently under the gold standard than in the post-1945 period.The interwar years were marked by severe economic instability. The monetization of war debt and of reparation payments led to episodes of hyperinflation in Europe. Anill-fated attempt to return to thepre-war gold parity for the pound led to stagnation in Britain. Competitive devaluations and protectionism were pursued in a futile effort to stimulate domestic economic growth during the Great Depression.These beggar-thy-neighbor policies provoked foreign retaliation and led to the disintegration of the world economy. As one of the case studies shows, strict adherence to the Gold Standard appears to have hurt many countries during the Great Depression.Determined to avoid repeating the mistakes of the interwar years, Allied economic policy-makers metat Bretton Woods in 1944 to forge a new international monetary system for the postwar world. The exchange-rate regime that emerged from this conference had at its center the . dollar. All other currencies had fixed exchange rates against the dollar, which itself had a fixed value in terms of gold.An International Monetary Fund was set up to oversee the system and facilitate its functioning by lending to countries with temporary balance of payments problems.A formal discussion of internal and external balance introduces the concepts of expenditure-switching and expenditure-changing policies. The Bretton Woods system, with its emphasis on infrequent adjustmentof fixed parities, restricted the use of expenditure-switching policies. Increases in U.S. monetary growth to finance fiscal expenditures after the mid-1960s led to a loss of confidence in the dollar and the termination of the dollar’s convertibility into gold. The analysis presented in the text demonstrateshow the Bretton Woods system forced countries to “import” inflation from the United States and shows that the breakdown of the system occurred when countries were no longer willing to accept this burden.?Answers to Textbook Problems1. a. Since it takes considerable investment to develop uranium mines, you wouldwant a larger current account deficit to allow your country to finance some of the investment with foreign savings.b. A permanent increase in the world price of copper would cause a short-termcurrent account deficit if the price rise leads you to invest more in coppermining. If there are no investment effects, you would not change yourexternal balance target because it would be optimal simply to spend youradditional income.c. A temporary increase in the world price of copper would cause a currentaccount surplus. You would want to smooth out your country’s consumption bysaving some of its temporarily higher income.d. A temporary rise in the world price of oil would cause a current accountdeficit if you were an importer of oil, but a surplus if you were an exporter of oil.2. Because the marginal propensity to consume out of income is less than 1, atransfer of income from B to A increases savings in A and decreases savings in B.Therefore, A has a current account surplus and B has a corresponding deficit.This corresponds to a balance of payments disequilibrium in Hume’s world, which must be financed by gold flows from B to A. These gold flows increase A’s money supply and decrease B’s money supply, pushing up prices in A and depressingprices in B. These price changes cease once balance of payments equilibrium has been restored.3. Changes in parities reflected both initial misalignments and balance of paymentscrises. Attempts to return to the parities of the prewar period after the war ignored the changes in underlying economic fundamentals that the war caused. This made some exchange rates less than fully credible and encouraged balance ofpayments crises. Central bank commitments to the gold parities were also less than credible after the wartime suspension of the gold standard, and as a result of the increasing concern of governments with internal economic conditions.4. A monetary contraction, under the gold standard, will lead to an increase in thegold holdings of the contracting country’s central bank if other countries do not pursue a similar policy. All countries cannot succeed in doing thissimultaneously since the total stock of gold reserves is fixed in the short run.Under a reserve currency system, however, a monetary contraction causes anincipient rise in the domestic interest rate, which attracts foreign capital. The central bank must accommodate the inflow of foreign capital to preserve theexchange rate parity. There is thus an increase in the central bank’s holdings of foreign reserves equal to the fall in its holdings of domestic assets. There is no obstacle to a simultaneous increase in reserves by all central banksbecause central banks acquire more claims on the reserve currency country while their citizens end up with correspondingly greater liabilities.5. The increase in domestic prices makes home exports less attractive and causes acurrent account deficit. This diminishes the money supply and causescontractionary pressures in the economywhich serve to mitigate and ultimately reverse wage demands and price increases.6. A “demand determined” increase in dollar reserve holdings would not affect theworld supply of money as central banks merely attempt to trade their holdings of domestic assets for dollar rese rves. A “supply determined” increase in reserve holdings, however, would result from expansionary monetary policy in the United States (the reserve center). At least at the end of the Bretton Woods era the increase in world dollar reserves arose in part because of an expansionarymonetary policyin the United States rather than a desire by other central banks to increasetheir holdings of dollar assets. Only the “supply determined” increase indollar reserves is relevant for analyzing the relationship between world holdings of dollar reserves by central banks and inflation.7. An increase in the world interest rate leads to a fall in a central bank’sholdings of foreign reserves as domestic residents trade in their cash forforeign bonds. This leads to a d ecline in the home country’s money supply. The central bank of a “small” country cannot offset these effects sinceit cannot alter the world interest rate. An attempt to sterilize the reserve loss through open market purchases would fail unless bonds are imperfect substitutes.8. Capital account restrictions insulate the domestic interest rate from the worldinterest rate. Monetary policy, as well as fiscal policy, can be used to achieve internal balance. Because there are no offsetting capital flows, monetary policy, as well as fiscal policy, can be used to achieve internal balance. The costs of capital controls include the inefficiency which is introduced when the domestic interest rate differs from the world rate and the high costs of enforcing the controls.9. Yes, it does seem that the external balance problem of a deficit country is moresevere. While the macroeconomic imbalance may be equally problematic in the long run regardless of whether it is a deficit or surplus, large external deficits involve the risk that the market will fix the problem quickly by ceasing to fund the external deficit. In this case, there may have to be rapid adjustment that could be disruptive. Surplus countries are rarely forced into rapid adjustments, making the problems less risky.10. An inflow attack is different from capital flight, but many parallels exist. Inan “outflow” attack, speculators sell the home currency and drain the central bank of its foreign assets. The central bank could always defend if it so chooses (they can raise interest rates to improbably high levels), but if it is unwilling to cripple the economy with tight monetary policy, it must relent. An “inflow”attack is similar in that the central bank can always maintain the peg, it is just that the consequences of doing so may be more unpalatable than breaking the peg. If money flows in, the central bank must buy foreign assets to keep thecurrency from appreciating. If the central bank cannot sterilize all the inflows (eventually they may run out of domestic assets to sell to sterilize thetransactions where they are buying foreign assets), it will have to either let the currency appreciate or let the money supply rise. If it is unwilling to allow and increase in inflation due to a rising money supply, breaking the peg may be preferable.11. a. We know that China has a very large current account surplus, placing them highabove the XX line. They also have moderate inflationary pressures (describedas “gathering” in the question, implying they are not yet very strong). This suggests that China is above the II line, but not too far above it. It wouldbe placed in Zone 1 (see below).b. China needs to appreciate the exchange rate to move down on the graph towardsbalance. (Shown on the graph with the dashed line down)c. China would need to expand government spending to move to the right and hitthe overall balance point. Such a policy would help cushion the negativeaggregate demand pressurethat the appreciation might generate.。

克鲁格曼《国际经济学》第8版笔记和课后习题详解第20章最优货币区和欧洲的经验20.1复习笔记1．欧洲单一货币的演变（1）1969～1978年欧洲货币改革的原因欧盟国家从20世纪60年代末开始努力寻求货币政策的一致性和汇率的更大稳定性，其主要有三个原因：一是影响世界经济的政策形势发生了变化；二是人们希望欧盟能发挥更大的作用；三是汇率的变动给欧盟带来了不少管理上的问题。

具体原因有两个：①为了提高欧洲在世界货币体系中的地位。

1969年的货币危机使得欧洲对美国将其国际货币职责放在其国家利益之前的可靠性失去信心。

面对美国越来越自私的政策，欧盟国家为了更加有效地维护自己的经济利益，决定在货币问题上采取一致行动。

②为了把欧盟变成一个真正的统一市场。

欧盟的长远目标就是要消除所有障碍，把欧盟变成一个巨大的统一的市场。

欧洲的政府官员认为，汇率的不确定性，是减少欧盟内部贸易的主要原因之一，只有在欧洲国家之间建立起固定的相互汇率，才能形成一个真正的统一欧洲市场。

（2）1979～1998年的欧洲货币体系（EMS）欧洲货币体系是欧洲共同体国家为实现经济一体化而于1979年3月13日建立的区域性金融体系。

当时参加的国家有联邦德国、法国、意大利、荷兰、比利时、卢森堡、丹麦和爱尔兰。

1984年9月希腊加入，1987年5月12日西班牙加入，1987年11月10日葡萄牙加入，1995年1月1日奥地利、芬兰和瑞典加入。

欧洲货币体系的主要内容包括三个方面：①创建欧洲货币单位。

欧洲货币单位是欧洲货币体系的中心内容。

在结构上，欧洲货币单位与欧洲记账单位相同，都是由成员国的一定量的货币组成，是一个货币“篮子”。

与欧洲记账单位的本质区别是，欧洲货币单位不仅可以作为价值尺度给资产和负债标价，而且还是一种支付手段，在许多方面发挥着货币的功能。

所以，欧洲货币单位既是一个货币“篮子”，也是一种“篮子货币”。

②建立双重的中心汇率制，以保证成员国汇率的稳定。

习题选答第1章6.（1）消费者需求理论揭示，当一种商品价格上升时，该商品的需求量减少，。

（2）当国内消费者面对的进口商品价格上升时，该商品的出口需求量将会减少。

7、（1）政府可以通过减少政府支出和（或）增加税收来减少财政逆差。

（2）政府可以通过对进口商品征税和（或）对出口补贴，增加国外借款或教师国外贷款，以及降低国民收入水平来减少或消除国际收支逆差。

10.国际贸易给消费者带来商品的低价格，但是损害了国内竞争厂商的利益。

通常，那些厂商联合起来对政府施加压力，要求限制进口。

通常消费者数量多，但缺乏组织。

并且每个人只从进口限制中受到很小的损失，因而政府往往屈服于厂商的压力而对进口施加限制。

第2章2、In case A, the United States has a comparative advantage in wheat and the United Kingdom in cloth.In case B, the United States has a comparative advantage in wheat and the United Kingdom in cloth.In case C, the United States has a comparative advantage in wheat and the United Kingdom in cloth.In case D, the United States and the United Kingdom have a comparative advantage in neither commodities.4. a) The United States gains 1C.b) The United Kingdom gains 4C.c) 3C < 4W < 8C.d) The United States would gain 3C while the United Kingdom would gain 2C.10.If D W(US+UK) intersected S W(US+UK) at P W/P C=2/3 and 120W in the leftpanel of Figure 2.3, this would mean that the United States would not be specializing completely in the production of wheat.The United Kingdom, on the other hand, would be specializing completely in the production of cloth and exchanging 20C for 30W with the United States. Since the United Kingdom trades at U.S. the pre-trade relative commodity price of P W/P C=2/3 in the United States, the United Kingdom receives all of the gains from trade.第三章3（1）a) See Figure 3b) Nation 1 has a comparative advantage in X and Nation 2 in Y.c) If the relative commodity price line has equal slope in both nations.4.a) See Figure 4.b)Nation 1 gains by the amount by which point E is to the right andabove point A andNation 2 by the excess of E' over A'. Nation 1 gains more from trade because the relative price of X with trade differs more from its pretrade price than for Nation 2.7.See Figure 6 .The small nation will move from A to B in production, exports X in exchange for Y so asto reach point E > A.第四章6、a) See Figure 5.b.)The quantity of imports demanded by Nation 1 at P F'exceeds thequantity of exports of Y supplied by Nation 2. Therefore, Px/Py declines (Py/Px rises) until the quantitydemanded of imports of Y by Nation 1 equals the quantity of exports of Y supplied by Nation 2 at P B=P B'.c.)The backward bending (i.e., negatively sloped) segment of Nation 1'soffer curve indicate that nation 1 is willing to give up less of X for larger amounts of Y.8. See Figure 7.From the left panel of Figure 4.4, we see that Nation 2 does not export any amount of commodity Y at Px/Py=4, or Py/Px=1/4. This gives point A on Nation 2's supply curve of the exports of commodity Y (S). From the left panel of Figure 4.4, we also see that at Px/Py=2 or Py/Px=1/2, Nation 2 exports 40Y. This gives point H on S. Other point on S couldsimilarly be derived. Note that S in Figure 7 is identical to S in Figure 4.6 in the text showing Nation 1's exports of commodity X.From the left panel of Figure 4.3, we see that Nation 1 demands 60Y of Nation 2's e exports at Px/Py=Py/Px=1. This gives point E on Nation 1's demand curve of Nation 2's exports of commodity Y (D). From the left panel of Figure 4.3, we can estimate that Nation 1 demands 40Y at Py/Px=3/2 (point H on D in Figure 7) and 120Y at Py/Px=2 (point H' on D).The equilibrium relative commodity price of commodity Y is Py/Px=1. This is determined at the intersection of D and S in Figure 7. At Py/Px=3/2, there is an excess supply of R'R=30Y and Py/Px falls to Py/Px=1. On the other hand, at Py/Px=1/2, there is an excess demand of HH'=80Y and Py/Px rises to Py/Px=1. Note also that Figure 7 is symmetrical with Figure 4.6 in the text.10. See Figure 8 on page 36.In Figure 8, Nation 2 is the small nation and we magnified the portion of the offer curveof Nation 1 (the large nation) near the origin (where Nation 1's offer curve coincides with P A=1/4, Nation 1's pretrade relative commodity price with trade). This means that Nation 2 can import a sufficiently small quantity of commodity X without perceptibly affecting Px/Py in Nation 1. Thus, Nation 2 is a price taker and captures all of the benefits from its trade with Nation 1. The same would be true even if Nation 2 were not a small nation, as long as Nation 1 faced constant opportunity costs and did not specialize completely in the production of commodity X with trade. 第五章4. See Figure 4 on page 46.7. See Figure 6.13. a) See Figure 7.b)Factor-intensity reversal could occur if the substitutability of Kfor L in the productionof X was much greater than for Y and r/w was lower in Nation 2 than in Nation 1.c)Minhas found factor-intensity reversal to be fairly frequent.However, by correcting animportant source of bias in the Minhas study, Leontief showed that factor-intensityreversal was much less frequent. Ball tested another aspect of Minhas' conclusion andconfirmed Leontief's results that factor-intensity reversal was rare in the real world.第6章1. See Figure 1.6. See Figure 4.The AC and the MC curves in Figure 4 are the same as in Figure 6-2. However, D and thecorresponding MR curve are higher on the assumption that other firms have not yet imitatedthis firm's product, reduced its market share, or competed this firm's profits away. In Figure4, MR=MC at point E, so that the best level of output of the firm is 5 units and price is$4.50. Since at Q=5, AC=$3.00, the firm earns a profit of AB=$2.00 per unit and $10.00in total.14. See Figure 8.第七章（略）第8章4. g = 0.4 - (0.5)(0.4) = 0.4 - 0.2 = 0.2 = 40%1.0 - 0.5 0.5 0.5 7. See Figure2.8.When Nation 1 (assumed to be a small nation) imposes an importtariff on commodity Y, the real income of labor falls and that of capital rises.第九章2. The partial equilibrium effects of the import quota are:P x=$1.50; consumption is 45X, of which 15X are produced domestically;b y auctioning off import licenses, the revenue effect would be $15.3. The partial equilibrium effects of the import quota are:P x=$2.50; consumption is 40X, of which 10X are produced domestically;t he revenue effect is $45.11. a) The monopolist should charge P1=$4 in the domestic market and P2=$3 in Figure 9-5 in Appendix A9.2.b) This represents the best, or optimal distribution of sales betweenthe two markets because any other distribution of sales in the two markets gives less revenue.第十章1. If Nation A imposes a 100 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will produce commodity X domestically because thedomestic price of commodity X is $10 as compared with the tariff-inclusive price of$16 if Nation A imported commodity X from Nation B and $12 if Nation A importedcommodity X from nation C.2. a) If Nation A forms a customs union with Nation B, Nation A will import commodityX from Nation B at the price of $8 instead of producing it itself at $10 or importing itfrom Nation C at the tariff-inclusive price of $12.b) When Nation A forms a customs union with Nation B this would be a trade-creatingcustoms union because it replaces domestic production of commodity X at Px=$10with tariff-free imports of commodity X from Nation B at Px=$8.3. If Nation A imposes a 50 percent ad valorem tariff on imports of commodity X fromNation B and Nation C, Nation A will import commodity X from nation C at the tariff-inclusive price of $9 instead of producing commodity X itself or importing it fromNation B at the tariff-inclusive price of $12.第十一章（略）第十二章（略）第十三章1. a. The U.S. debits its current account by $500 (for themerchandise imports) and credits capital by the same amount (for the increase in foreign assets in the U.S.).The U.S. credits capital by $500 (the drawing down of its bank balances in London, a capital inflow) and debits capital by an equal amount (to balance the capital credit that the U.S. importer received when the U.K. exporter accepted to be paid in three months).The U.S. is left with a $500 debit in its current account and a net credit balance of $500 in its capital account.6. The U.S. credits its capital account by $400 (for the purchase of the U.S. treasury bills by the foreign resident) and debits its capital account (for the drawing down of the foreign resident's bank balances in the United States) for the by the same amount.7. The U.S. debits its current account by $40 for the interest paid, debits its capital account by $400 (for the capital outflow for the repayment of the repayment of the principal to the foreign investors by the U.S. borrower), and then credits its capital account by $440 (the increase in foreign holdings of U.S. assets, a credit).第十四章5. a. The pound is at a three-month forward premium of 1c or 0.5% (or 2%/year) withrespect to the dollar.b. The pound is at a three-month forward discount of 4c or 2% (or 8%/year) withrespect to the dollar.9. The speculator can speculate in the forward exchange market by purchasing pounds forward for delivery in three months at FR=$2/£1.If the speculator is correct, he will earn 5c per pound purchased.11. The interest arbitrageur will earn 2% per year from the purchase of foreign three- month treasury bills if he covers the foreign exchange risk.第十五章7. Md=100/4=25 falls short of Ms=30 and there will be an outflow of international reserves(a deficit in the nation's balance of payments).9.(a) The condition for uncovered interest parity is given by i-i*=EA, where EA is theexpected appreciation of the pound. That is, since the spot rate of SR=$2.02/£1 inthree months is 1% (4% on an annual basis) higher than SR=$2.00/£1 today, thecondition for UIA is satisfied because 6%-10% = 4% (with all percentage ratesexpressed on an annual basis).(b) If the spot rate is expected to be SR=$2.04/£1 in three months, the pound wouldbe expected to appreciate by 2% for the three months (8% on an annual basis). I nvestors would now earn more by investing in London than by investing in New York and the condition for UIA would no longer be satisfied. As more dollars are exchanged for pounds to increase investments in London, the actual spot rate will increase from SR=$2.00/£1 to SR=$2.02/£1. This will leave only an expected appreciation of the pound of about 4% per year (the same as before the change in expectations). This is obtained by comparing the new higher spot rate of SR=$2.02/£1 today with the new expected spot rate of SR=$2.04/£1 in three months, so as to return to UIA parity.12. According to the portfolio balance approach, an increase in the expected rate ofinflation in the nation would lead to the expectation that the domestic currency w ill depreciate and the foreign currency will appreciate under flexible exchange rates. In terms of the extended portfolio balance model, this means that the expected appreciation of the foreign currency (EA) increases. The rise in EA will lead to a reduction in the demand for money balances (M) and the domestic bond (D) and an increase in the demand for the foreign bond (F) by domestic residents (see Equations 15-10 to 15-12). This leads to a depreciation of the domestic currency as domestic residents exchange the domestic for the foreign currency in order to purchase the foreign bond and to other changes in all other variables of the model until equlibrium is reestablisehd in all the markets simultaneously.第十六章1. The nation's demand curve for imports is derived by the horizontal distance of the nation's supply curve from the nation's demand curve of the tradable commodity at each price below theequilibrium level of the tradable commodity. See Figure 1.2. The nation's supply curve for exports is derived by the horizontal distance of the nation's demand curve from the nation's supply curve of the tradable commodity at each price above the equilibrium level of the tradable commodity. See Figure 2.7. S M is infinitely elastic for a small nation because a small nation can demand any quantity of imports without affecting its price; similarly, D X is infinitely elastic because a small nation can sell any amount of its export good without having to reduce its price.第十七章5. a. S(Y)+M(Y)=-100+0.2Y+150+0.2Y=50+0.4YI+X=100+350=45050+0.4Y=450; therefore, Y E=400/0.4=1000.b. See Figure 5.The equilibrium level of national income is Y E = 1,000 and is given by point E at whichthe positively-sloped S+M function crosses the horizontal I+X function.6. See Figure 6.The equilibrium level of national income is Y E = 1,000 and is given by point E at whichthe negatively-sloped X-M function crosses the positively-sloped S-I function.∆YE=(∆X)(k")=(200)(1.88)=376∆M=(∆YE)(MPM1)=(376)(0.20)=75.2∆S=(∆YE)(MPS1)=(376)(0.20)=75.2∆X=∆S+ ∆M=75.2+75.2=150.4 so that∆X-∆M=75.2=Nation 1's trade surplus.∆YE=(∆I)(k*)=(200)(3.13)=626∆M=(∆YE)(MPM1)=(626)(0.20)=125.2∆S=(∆YE)(MPS1)=(626)(0.20)=125.2200+∆X=125.2+125.2and ∆X=50.4 so that∆X-∆M=50.4-125.2=-74.8第十八章1. Point Change in D Change in RC1 increase devalueC4 increase revalueC7 decrease revalueC10 decrease devalue11. Starting from point E in Figure 18-8 in the text, the nation could use the fiscal policy that shifts the IS curve to IS' (see Figure 5 on the next page), intersecting the LM curve at point Z. Since point Z is now to the left of the BP curve, the nation will have a surplus in its balance of payments. With flexible exchange rates, the nation's currency appreciates and so the BP curve shifts to the left. This induces a leftward shift in the IS curve to IS" and a rightward shift in the LM curve to LM', such that curve IS" and LM' intersect on the BP curve at point E'.Since at point E' the nation still faces unemployment, the nation would need to a pply additional doses of expansionary fiscal policy until all three markets are in equilibrium at the full-employment level of national income of YF = 1500.12. Point Fiscal Policy Monetary PolicyC3 expansionary easyC6 contractionary easyC9 contractionary tightC12 expansionary tight。

For personal use only in study and research; not for commercial use第一章1．为什么说在决定生产和消费时，相对价格比绝对价格更重要？答案提示：当生产处于生产边界线上，资源则得到了充分利用，这时，要想增加某一产品的生产，必须降低另一产品的生产，也就是说，增加某一产品的生产是有机会机本（或社会成本）的。

生产可能性边界上任何一点都表示生产效率和充分就业得以实现，但究竟选择哪一点，则还要看两个商品的相对价格，即它们在市场上的交换比率。

相对价格等于机会成本时，生产点在生产可能性边界上的位置也就确定了。

所以，在决定生产和消费时，相对价格比绝对价格更重要2．仿效图1—6和图1—7，试推导出Y商品的国民供给曲线和国民需求曲线。

答：参见教材第一章第二节容，将图1－6a中，以横坐标表示y商品的供给，以纵坐标表示x商品供给，得出相应生产可能性边界线，然后将图1－6b中，以横坐标表示y商品供给，以纵坐标表示y的相对价格，通过类似推导可得出国民供给曲线，国民需求曲线作类似推导可得。

3．在只有两种商品的情况下，当一个商品达到均衡时，另外一个商品是否也同时达到均衡？答：两种商品同时达到均衡。

一种商品均衡时，由其相对价格，机会成本，需求可知另一种商品得相对价格，机会成本和需求。

4．如果生产可能性边界是一条直线，试确定过剩供给（或需求）曲线。

答案提示：略，参见书上5．如果改用Y商品的过剩供给曲线（B国）和过剩需求曲线（A国）来确定国际均衡价格，那么所得出的结果与图1—13中的结果是否一致？答案提示：国际均衡价格将依旧处于贸易前两国相对价格的中间某点。

6．说明贸易条件变化如何影响国际贸易利益在两国间的分配。

答案提示：一国出口产品价格的相对上升意味着此国可以用较少的出口换得较多的进口产品，有利于此国贸易利益的获得，不过，出口价格上升将不利于出口数量的增加，有损于出口国的贸易利益；与此类似，出口商品价格的下降有利于出口商品数量的增加，但是这意味着此国用较多的出口换得较少的进口产品。

第一章绪论1、列举出体现当前国际经济学问题的一些重要事件，他们为什么重要？他们都是怎么影响中国与欧、美、日的经济和政治关系的？当前的国际金融危机最能体现国际经济学问题，其深刻地影响了世界各国的金融、实体经济、政治等领域，也影响了各国之间的关系因此显得尤为重要；其对中国与欧、美、日的政治和经济关系的影响为：减少中国对上述国家的出口，影响中国外汇储备，贸易摩擦加剧，经济联系加强，因而也会导致中国与上述国家在政治上的对话与合作。

2、我们如何评价一国与他国之间的相互依赖程度？我们可以通过一国的对外贸易依存度来评价该国与他国之间的相互依赖程度，也可以通过其他方式来评价比如一国政府政策的溢出效应和回震效应以及对外贸易对国民生活水平的影响。

3、国际贸易理论及国际贸易政策研究的内容是什么？为什么说他们是国际经济学的微观方面?国际贸易理论分析贸易的基础和所得，国际贸易政策考察贸易限制和新保护主义的原因和效果。

国际贸易理论和政策是国际经济学的微观方面，因为他们把国家看作基本单位，并研究单个商品的（相对）价格。

4、什么是外汇交易市场及国际收支平衡表？调节国际收支平衡意味着什么？为什么说他们是国际经济学的宏观方面？什么是宏观开放经济学及国际金融？外汇交易市场描述一国货币与他国货币交换的框架，国际收支平衡表测度了一国与外部世界交易的总收入与总支出的情况。

调节国际收支平衡意味着调节一国与外部世界交易出现的不均衡（赤字或盈余）；由于国际收支平衡表涉及总收入和总支出，调节政策影响国家收入水平和价格总指数，因而他们是国际经济学的宏观方面；外汇交易及国际收支平衡调节涉及总收入和总支出，调整政策影响国家收入水平和价格总指数，这些内容被称为宏观开放经济学或国际金融。

5、浏览报刊并做下列题目：（1）找出5条有关国际经济学的新闻（2）每条新闻对中国经济的重要性或影响（3）每条新闻对你个人有何影响A (1) 国际金融危机: 影响中国整体经济,降低出口、增加失业、经济减速等(2) 美国大选：影响中美未来经济政治关系(3) 石油价格持续下跌：影响中国的能源价格及相关产业(4) 可口可乐收购汇源被商务部否决：《反垄断法》的第一次实施，加强经济法治(5) 各国政府经济刺激方案：对中国经济产生外部性效应B 以上5条新闻对个人影响为：影响个人消费水平和就业前景第二章比较优势理论1、重商主义者的贸易观点如何？他们的国家财富概念与现在有何不同？重商主义者主张政府应当竭尽所能孤立出口，不主张甚至限制商品（尤其是奢侈类消费品）。

Answers to Textbook Problems1. An expansion of the central bank’s domestic assets leads to an equal fall in its foreign assets, withno change in the bank’s liabilities (or the money supply). The effect on the balance-of-paymentsaccounts is most easily understood by recalling how the fall in foreign reserves comes about. After the central bank buys domestic assets with money, there is initially an excess supply of money. The central bank must intervene in the foreign exchange market to hold the exchange rate fixed in the face of this excess supply: the bank sells foreign assets and buys money until the excess supply of money has been eliminated. Since private residents acquire the reserves the central bank loses, there is a non-central bank capital outflow (a financial-account debit) equal to the increase in foreign assets held by the private sector. The offsetting credit is the reduction in central bank holdings of foreign assets, an official financial inflow.2. An increase in government spending raises income and also money demand. The central bank preventsthe initial excess money demand from appreciating the domestic currency by purchasing foreign assets from the domestic public. Central bank foreign assets rise, as do the central bank’s liabilit ies and, with them, the money supply. The central bank’s additional reserve holdings show up as anofficial capital outflow, a capital-account debit. Offsetting this debit is the capital inflow(a credit) associated with the public’s equal reduction in it s own foreign assets.3. A one-time unexpected devaluation initially increases output; the output increase, in turn, raisesmoney demand. The central bank must accommodate the higher money demand by buying foreign assets with domestic currency, a step th at raises the central bank’s liabilities (and the home money supply) at the same time as it increases the bank’s foreign assets. The increase in official foreign reserves is an official capital outflow; it is matched in the balance of payments accounts by the equal capital outflow associated with the public’s own reduction in net foreign asset holdings. (The public must exchange foreign assets for the money it buys from the central bank, either by selling foreign assets or by borrowing foreign currency abroad. Either course of action is a capital inflow.)A more subtle issue is the following: when the price of foreign currency is raised, the value of theinitial stock of foreign reserves rises when measured in terms of domestic currency. This capital gain in itself raises central-bank foreign assets (which were measured in domestic currency units in our analysis)—so where is the corresponding increase in liabilities? Does the central bank inject more currency or bank-system reserves into the economy to balance its balance sheet? The answer is that central banks generally create fictional accounting liabilities to offset the effect of exchange-rate fluctuations on the home-currency value of international reserves. These capital gains and losses do not automatically lead to changes in the monetary base.4. As shown in Figure 17.1, a devaluation causes the AA curve to shift to A'A' which reflects anexpansion in both output and the money supply in the economy. Figure 17.1 also contains an XXcurve along which the current account is in balance. The initial equilibrium, at point 0, was on the XX curve, reflecting the fact that the current account was in balance there. After the devaluation,the new equilibrium point is above and to the left of the XX curve, in the region where the current account is in surplus. With fixed prices, a devaluation improves an economy’s competitiveness,increasing its exports, decreasing its imports, and raising the level of output.Chapter 17 Fixed Exchange Rates and Foreign-Exchange Intervention 85Figure 17.15. a. Germany clearly had the ability to change the dollar/DM exchange simply by altering its moneysupply. The fact that “billions of dollars worth of currencies are traded each day” is irrelevantbecause exchange rates equilibrate markets for stocks of assets, and the trade volumes mentioned are flows.b. One must distinguish between sterilized and nonsterilized intervention. The evidenceregarding sterilized intervention suggests that its effects are limited to the signaling aspect.This aspect may well be most important when markets are “unusually erratic,” and the signalscommunicated may be most credible when the central bank is not attempting to resist clear-cutmarket trends (which depend on the complete range of government macroeconomic policies,among other factors). Nonsterilized intervention, however, is a powerful instrument in affectingexchange rates.c. The “psychological effect” of a “stated intention” to intervene may be more precisely stated as aneffect on the expected future level of the exchange rate.d. A rewrite might go as follows:To keep the dollar from falling against the West German mark, the European central banks would have to sell marks and buy dollars, a procedure known as intervention.86 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionBecause the available stocks of dollar and mark bonds are so large, it is unlikely that sterilizedintervention in the dollar/mark market, even if carried out by the two most economicallyinfluential members of the European Community—Britain and West Germany—would havemuch effect. The reason is that sterilized intervention changes only relative bond supplies andleaves national money supplies unchanged. Intervention by the United States and Germany thatwas not sterilized, however, would affect those countries’ money supplies and have a significant impact on the dollar/mark rate.Economists believe that the direct influence of sterilized intervention on exchange rates issmall compared with that of nonsterilized intervention. Even sterilized intervention can affectexchange rates, however, through its indirect influence on market expectations about futurepolicies. Such psychological effects, which can result from just the stated intention of theCommunity’s central banks to intervene, can disrupt the market by confusing traders aboutofficial plans. The signaling effect of intervention is most likely to benefit the authorities whentheir other macroeconomic policies are already being adjusted to push the exchange rate in thedesired direction.6. The problems caused by exchange-rate variability are discussed at length in Chapter 19; somemonetary policy autonomy might willingly be sacrificed to reduce these problems. Policy-makers might also sacrifice autonomy to enter into cooperative arrangements with foreign policy-makers that reduce the risk of “beggar-thy-neighbor” policy actions (see the appendix to Chapter 19).7. By raising output, fiscal expansion raises imports and thus worsens the current-account balance.The immediate fall in the current account is smaller than under floating, however, because thecurrency does not appreciate and crowd out net exports.8. The reason that the effects of temporary and permanent fiscal expansions differ under floatingexchange rates is that a temporary policy has no effect on the expected exchange rate while apermanent policy does. The AA curve shifts with a change in the expected exchange rate. In terms of the diagram, a permanent fiscal expansion causes the AA curve to shift down and to the leftwhich, combined with the outward shift in the DD curve, results in no change in output. With fixed exchange rates, however, there is no change in the expected exchange rate with either policy since the exchange rate is, by definition, fixed. In response to both temporary and permanent fiscal expansions, the central bank must expand the money supply (shift AA out) to prevent the currency fromappreciating (due to the shift out in the DD curve). Thus, Y goes up and E does not changeafter a permanent or temporary fiscal expansion when exchange rates are fixed.9. By expanding output, a devaluation automatically raises private saving, since part of any increase inoutput is saved. Government tax receipts rise with output, so the budget deficit is likely to decline, implying an increase in public saving. We have assumed investment to be constant in the main text. If investment instead depends negatively on the real interest rate (as in the IS-LM model), investment rises because devaluation raises inflationary expectations and thus lowers the real interest rate.(The nominal interest rate remains unchanged at the world level.) The interest-sensitive components of consumption spending also rise, and if these interest rate effects are strong enough, a current-account deficit could result.Chapter 17 Fixed Exchange Rates and Foreign-Exchange Intervention 87 10. An import tariff raises the price of imports to domestic consumers and shifts consumption fromimports to domestically produced goods. This causes an outward shift in the DD curve, increasing output and appreciating the currency. Since the central bank cannot allow exchange rates to change, it must increase the money supply, an action depicted in the diagram as an outward shift in the AAschedule. Corresponding to this monetary expansion is a balance of payments surplus and an equal increase in official foreign reserves.The fall in imports for one country implies a fall in exports for another country, and a corresponding inward shift of that country’s DD curve necessitating a monetary contraction by the central bank to preserve its fixed exchange rate. If all countries impose import tariffs, then no country succeeds in turning world demand in its favor or in gaining reserves through an improvement in its balance of payments. Trade volumes shrink, however, and all countries lose some of the gains from trade.11. If the market expects the devaluation to “stick,” the home nominal interest rate falls to the world levelafterward, money demand rises, and the central bank buys foreign assets with domestic money to prevent excess money demand from appreciating the currency. The central bank thus gains official reserves, according to our model. Even if another devaluation was to occur in the near future,reserves might be gained if the first devaluation lowered the depreciation expected for the future and, with it, the home nominal interest rate. An inadequate initial devaluation could, however, increase the devaluation expected for the future, with opposite effects on the balance of payments.12. If the Bank of Japan holds U.S. dollars instead of Treasury bills, the adjustment process is symmetric.Any purchase of dollars by the Bank of Japan leads to a fall in the U.S. money supplyas the dollar bills go out of circulation and into the Bank of Japan’s vaults. A Japanese balance of payments surplus increases the Bank of Japan’s money supply (if there is no sterilizati on) andreduces the U.S. money supply at the same time.13. A central bank that is maintaining a fixed exchange rate will require an adequate buffer stock offoreign assets on hand during periods of persistent balance of payments deficits. If a central bank depletes its stock of foreign reserves, it is no longer able to keep its exchange rate from depreciating in response to pressures arising from a balance of payments deficit. Simply put, a central bank can either choose the exchange rate and allow its reserve holdings to change or choose the amount of foreign reserves it holds and allow the exchange rate to float. If it loses the ability to control theamount of reserves because the private demand for them exceeds its supply, it can no longer control the exchange rate. Thus, a central bank maintaining a fixed exchange rate is not indifferent about using domestic or foreign assets to implement monetary policy.14. An ESF intervention to support the yen involves an exchange of dollar-denominated assets initiallyowned by the ESF for yen-denominated assets initially owned by the private sector. Since this is an exchange of one type of bond for another, there is no change in the money supply and thusthis transaction is automatically sterilized. This transaction increases the outstanding stock ofdollar-denominated assets held by the private sector, which increases the risk premium on dollar-denominated assets.88 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Edition15. The monetary authorities can combine a change in the money supply with a purchase or sale of itsforeign assets to keep the exchange rate fixed while altering the domestic interest rate. For example, the monetary authorities lower domestic interest rates by increasing the money supply. To maintain a fixed value of the exchange rate, the monetary authority would also sell foreign assets and purchase domestic assets. In the Figure 17.2, the increase in the money supply lowers the interest rate from R0 to R'. The purchase of domestic assets and sale of foreign assets, while having no further effect on the money supply, lowers the risk premium, shifts the interest parity schedule from II to I'I' and maintains the exchange rate at E0.Figure 17.216.Assets LiabilitiesFA: 900 Deposits held by banks: 400DA: 1500 Currency: 2000The central bank’s foreign assets still drop, and consequently liabilities must still drop also. In this case, though, currency has not changed, but after the check clears, the issuing bank has $100 less held as a deposit at the central bank.17. Yes, there is some room within a target zone for domestic interest rates to move independently ofthe foreign rate. For a one-year rate, we might see that when R* rises 1%, the home currencydepreciates 1%, setting an expected appreciation of the home currency back to the middle of the band, thus offsetting the 1% lower interest rate. On a shorter maturity, one could—in theory—expect achange in the exchange rate of up to 2% (top to bottom of the band) in three months. This allowsthree-month rates to be 2% apart, meaning annualized rates could be over 8% apart. The shorter the maturity, the difference becomes essentially unbounded. But, this would require that the fixedexchange rate remains credible. On a ten-year bond, there can be only a 0.2% difference in rates as expected appreciation could be a maximum of 0.2% a year for the ten years.18. In a three country world, a central bank fixes one exchange rate but lets the other float. It is stillconstrained in its ability to use monetary policy. It must manipulate the money supply to keep the interest rate at the level that maintains interest parity. It has no autonomy. At the same time, it cannot keep more than one exchange rate fixed.Chapter 17 Fixed Exchange Rates and Foreign-Exchange Intervention 89 19. Consider an example where France sells domestic assets (DA) for gold. If other central banks wantto hold onto their monetary gold, they will raise interest rates (by selling domestic assets to reduce the money supply) to keep gold from leaving their country. The consequence may be that all central banks reduce their DA holdings and still hold the same amount of gold. Put differently, if France tries to sell domestic assets for gold and all other central banks do the same thing, the net effect is that there is still the same amount of gold on the asset side of all central banks balance sheets combined, but the domestic assets have gone down. Thus, the total assets have declined and there has been a monetary contraction. In contrast, if France buys U.S. dollar assets to hold as reserves in a reserves currency system, they can buy the dollars on the open market in exchange for domestic assets. If the investors want to hold dollars and the price of dollars begins to rise, the Fed can easily increase the supply of dollars by purchasing foreign assets in exchange for dollars. Thus, both have increased their foreign reserves, and there was no need for the assets side of the balance sheet to decline.20. When a country devalues against the reserve currency, the value of its reserves in foreign currency isunchanged, but the local currency value is now different. A devaluation, where the foreign currency can now buy more local currency leads to an increase in the value of reserves measured in localcurrency. If a country revalues, this will lead to local currency losses. These potential valuationgains and losses will affect the costs of reserves. A country receiving a lower interest rate on U.S.treasury bills than it pays on its own debt is experiencing a cost of holding reserves, but if uncovered interest parity holds, this interest rate gap loss should be exactly offset by exchange rate changes and valuation gains as the local currency is expected to depreciate versus the dollar (because local R is R U.S.). On the other hand, countries with large stocks of dollar reserves expose themselves to losses if the dollar depreciates rapidly. As long as U.S. interest rates are greater than local rates(which if the dollar is expected to depreciate, they should be), these losses will be offset by interest rate gains. On the other hand, if there are unexpected changes in the exchange rate, then we will see the valuation gains or losses materialize without any offsetting interest rate payments. In some sense, one cost of holding large stocks of reserves is exposure to these unexpected changes.。