Exchange-Rate Instability.

KRUGMAN, Paul.

$400.00

Item Number: 114546

Cambridge: The MIT Press, 1989.

First edition of Krugman’s provocative analysis of the extraordinary exchange-rate volatility of the 1980s. Octavo, original cloth. Presentation copy, inscribed by the author on the title page, “For William, Paul R. Krugman.” Near fine in a very good dust jacket.

In this intriguing synthesis of current theories of international finance, trade, and industrial organization, MIT economics professor Paul Krugman presents a succinct analysis of the causes and effects of exchange-rate instability. In a surprising reevaluation of his own work on exchange rates, Krugman questions the need for further devaluation of the dollar, arguing that uncertainty - rather than the lack of cost-competitiveness - explains the failure of current policies to reduce the U.S. trade deficit.