World Trade and Payments: An Introduction

We used this book in a one semester graduate class for International Economics. We used the book mostly for open economy macro as opposed to trade theory i.e. Chapter 16 & on. Like our professor told us, the book builds on concepts in a gradual fashion starting from the Marshall-Lerner condition right up to the Dornbusch Overshooting Model covering along the way, the basic Keynesian framework, Mundell-Fleming framework and, the policy assignment problem. The concepts helped us trace the causes for UK's renouncement of the Exchange Rate Mechanism in 1992 (and also how George Soros made his billions!). Using the book in this integrated fashion (Theory + Case Study) makes it a valuable addition to one's library.

I found this book to be a very good learning tool, as the course reader for an introductory international economics course. I find that most textbooks are good as reference, not as learning tools, but this book is an exception. In a very concise manner, it builds theory upon theory of international trade, until the student has developed a strong set of analysis tools. The portion on international finance is good intro as well, even though it does not compare with more specialized texts. This text is sufficient to prepare the reader for any advanced trade issues, with the exception of more mathematically based arguments (which the book does not develop, given its focus on beginners).

This textbook for International Economics is a rarity. It's intelligent, exceptionally well written by the experts in the field. It does include a thorough review of the state-of-the-art theory of international trade and finance. To facilitate learning and yet challenge the reader, the authors equipped each chapter with really tough exercises. Only having solved them one might have an impression that he grasped the metarial really well. Good exercises are an indispensable companion of a student. Here we have one of the best I have ever seen. And I have seen a lot. Superior to other textbooks and highly recommended.