International Trade and Finance
New Frontiers for Research

This collection of essays is intended to help define an agenda for future research in the field of international trade and finance.

Benjamin J. Cohen (Edited by)

9780521022040, Cambridge University Press

Paperback / softback, published 3 November 2005

416 pages, 25 b/w illus. 47 tables
23.4 x 15.6 x 2.2 cm, 0.575 kg

"These high quality papers are fitting tributes to an innovative and influential economist. I particularly enjoyed Paul Krugman's masterly review of Peter Kenen's contributions to theory and policy." W. Max Corden, Johns Hopkins University

This collection of original essays offers a selection of contemporary scholarship intended to help define an agenda for future research in the field of international trade and finance. Written to honour Peter B. Kenen and to follow his work, the volume is divided into three parts: international trade theory, international monetary theory, and applied policy analysis. Trade issues addressed include the role of capital in standard trade models, welfare implications of economic integration, and the relationship between economic openness and the size of government. The monetary chapters include two related essays on the effects of exchange rates on economic activity and two essays on aspects of optimum currency area theory. Applied policy papers include two on industrial countries, two on developing countries, and one on problems of transition in the successor states of the former Soviet Union. Also included is an essay by Paul Krugman assessing Kenen's lifetime of scholarly achievements.

Introduction
1. The practical theorist: Peter Kenen's contribution to international economics Paul R. Krugman
Part I. International Trade Theory: 2. Nature, capital and trade: a second look Patrick J. Conway
3. The Meade model of preferential trading: history, analytics and policy implications Arvind Panagariya
4. International trade and big government Dani Rodrik
Part II. International Monetary Theory: 5. Exchange rate regime and international trade Reuven Glick and Clas G. Wihlborg
6. Exchange rates and investment response in Latin America Linda S. Goldberg
7. Optimum currency areas and exchange rate volatility: theory and evidence compared Tamim Bayoumi and Barry Eichengreen
8. Optimum currency area theory: bringing the market back in Benjamin J. Cohen
Part III. Applied Policy Analysis: 9. Labour market adjustment and trade: their interaction in the Triad Marina V. N. Whitman
10. Do the G-3 countries coordinate monetary policy? Kathryn M. E. Dominguez
11. Fundamental determinants of Mexico's exchange-rate crisis of 1994 Polly Reynolds Allen
12. Devaluation cycles and adjustment costs Nancy P. Marion
13. Payments problems in the Commonwealth of Independent States Constantine Michalopoulos.

Subject Areas: International economics [KCL]