Krugman and Obstfeld provide a unified model of open-economy macroeconomics based upon an asset-market approach to exchange rate determination with a central role for expectations. This eighth edition integrates research, data and policy in hot topics such as outsourcing, geographic geography and financial derivatives.

Part 1: International trade theory -- 2. World trade: an overview -- 3. Labor productivity and comparative advantage: the Ricardian model -- 4. Resources, comparative advantage, and income distribution -- 5. The standard trade model -- 6. Economies of scale, imperfect competition, and international trade -- 7. International factor movements -- Part 2: International trade policy -- 8. The instruments of trade policy -- 9. The political economy of trade policy -- 10. Trade policy in developing countries -- 11. Controversies in trade policy. Part 3: Exchange rates and open-economy macroeconomics -- 12. National income accounting and the balance of payments -- 13. Exchange rates and the foreign exchange market: an asset approach -- 14. Money, interest rates, and exchange rates -- 15. Price levels and the exchange rate in the long run -- 16. Output and the exchange rate in the short run -- 17. Fixed exchange rates and foreign exchange intervention -- Part 4: International macroeconomic policy -- 18. The international monetary system, 1870/1973 -- 19. Macroeconomic policy and coordination under floating exchange rates -- 20. Optimum currency areas and the European experience -- 21. The global capital market: performance and policy problems -- 22. Developing countries: growth, crisis, and reform -- Mathematical postscripts.