A comprehensive, clear, and up-to-date introduction to the basic theory used by economists to understand the global economy for advanced undergraduates. Important concepts are illustrated with real-world examples and over 240 end-of-chapter questions consolidate learning.

Menzie Chinn is Professor of Public Affairs and Economics at the University of Wisconsin-Madison. He is a co-editor of the Journal of International Money and Finance, a Research Associate in the International Finance and Macroeconomics Program of the National Bureau of Economic Research, and has been a visiting scholar at the International Monetary Fund, the Congressional Budget Office, the Federal Reserve Board, the European Central Bank, and the Banque de France. He served as Senior Staff Economist for International Finance on the President's Council of Economic Advisers (2000-01). He is coauthor with Jeffry Frieden of Lost Decades: The Making of America's Debt Crisis and the Long Recovery (2011, W. W. Norton), and contributor to Econbrowser, a weblog devoted to current macroeconomic issues.

Preface; Part I. International Trade: 1. Introducing the global economy; 2. Gains from trade; 3. Exploring the gains from trade; 4. Trade and comparative advantage; 5. Trade and factor endowments; 6. Factor mobility; 7. Product variety; 8. Trade policy; 9. Trade intervention; 10. Trade policy; Part II. International Finance: 11. Measuring the economy and its interaction with the world; 12. Exchange rates, interest rates, and the foreign exchange market; 13. Spending and income in the short run; 14. Income and interest rates under fixed exchange rates; 15. Floating exchange rates and the international trilemma; 16. Income, money and the price level in an open economy; 17. The determinants of the exchange rate; 18. Emerging market crises; 19. The global financial crisis; 20. The Eurozone crisis; References; Index.