Foundations of International Macroeconomics

Rating:
Summary: a must-have for your private library
Review: Currently I'm using this book for my class called Trade and Economic Growth I II. The nuances of microeconomic foundations found in chapters 1 to 5 are used to explain and develop the concepts studied in open economy macroeconomics and international finance; so it is recommended that you understand fully the first three chapters of this book at least to understand the rest. The authors try to explain the concepts as clear as possible; however, you have to derive for yourself the equations that appear in the text, which is a challenge for most first year graduate students who are not yet proficient in using the tools of static/dynamic optimization, etc. A reference on mathematical economics such as Chiang's "Fundamental methods of math. econ.," and "Elements of dynamic optimization," or Simon Blume's "Mathematics for economists" should be kept near at hand. Nevertheless, there are many real-world examples that help clarify matters and make the this book more readable and interesting.

Rating:
Summary: a must-have for your private library
Review: Currently I'm using this book for my class called Trade and Economic Growth I II. The nuances of microeconomic foundations found in chapters 1 to 5 are used to explain and develop the concepts studied in open economy macroeconomics and international finance; so it is recommended that you understand fully the first three chapters of this book at least to understand the rest. The authors try to explain the concepts as clear as possible; however, you have to derive for yourself the equations that appear in the text, which is a challenge for most first year graduate students who are not yet proficient in using the tools of static/dynamic optimization, etc. A reference on mathematical economics such as Chiang's "Fundamental methods of math. econ.," and "Elements of dynamic optimization," or Simon Blume's "Mathematics for economists" should be kept near at hand. Nevertheless, there are many real-world examples that help clarify matters and make the this book more readable and interesting.

Rating:
Summary: Coherent synthesis of modern open economy macro literature
Review: The authors recognized the problems with the way that the subject of open economy macroeconomics has been taught in graduate programs in the past. In particular, there was little agreement and no definitive text that tied together any unified theme. Eclectic reading lists, mainly from the 1960's and the 1970's, were provided on each subject area with major changes in analysis required to shift from one area to another. The counter argument from others in the field was that the modern literature lacked policy relevance. The authors' retort by claiming that the "classic approach" lacks internal consistency and the micro foundations required. Moreover, the older approach has been criticized for failing to deal with dynamics clearly and does not address many of the policy issues that are relevant today. With the exception of two chapters on money the text builds up from a single analytical framework to display several of the key results in international macroeconomics and growth. A rigorous approach based on the micro foundations of macroeconomics is used throughout the text. While this approach may be criticized for putting forward only a Neoclassical method, the authors have made an effort to include models of imperfections and some material based on Keynesian underpinnings. The text gives a current appreciation of the state of the literature in the field and as such is an excellent reference tool. The authors' vigilance in updating the material in the text via the web site is particularly appealing as it keeps it contemporary. For the targeted consumer: the graduate student (like myself) and certainly the academic, the level of sophistication is not prohibitive.