1 INTRODUCTION:THE POLITICAL ECONOMY OF INTERNATIONAL AFFAIRS
Domestic Political Economy
International Political Economy
Approaches to International Political Economy
2 THE ECONOMICS OF INTERNATIONAL POLITICAL ECONOMY
The Balance of Payments
Monetary and Fiscal Policy
Exchange Rates and Trade Deficits
How Exchange Rates Affect Trade
Exchange Rates ,Trade,and Macroeconomic Policy
3 THE ORIGNS OF A WORLD ECONOMY
Industrialization and International Trade
The Turn to Freer Trade
Repeal of the corn Laws
The Expansion of the World Ecconomy
The Perils of Interdependence:1873-1914
Transformation of the World Economy
Japan and Late Efconomic Devepopment
The world Economy on the Eve of world War I
World War I and Its Aftermath
The Economic Consequences of World War I
A Failure of Political Vision
collapse of the World Economy
Autarchy and Cooperation
4 THE POLITICAL ECONOMY OF AMERICAN HEGEMONY,1938-1973
5 GLOBALIZATION AND THE WORLD ECONOMY
6 COOPERATIONA AMONG ADVANCED INDUSTRIALSTATES
7 COMPETITION AND DONFLICT AMONG ADVANCED INDUSTRIAL STATES
8 RICH AND POOR STATES IN THE WORLD ECONOMY
9 STARATEGIES OF SOUTHERN TRADE AND DEVELOPMENT
10 FOREIGN AID AND THIRD WORLD DEVELOPMENT
11 MULITINATIONAL CORPORATIONS IN THE THIRD WORLD
12 THIRD WORLD DEBT AND NORTH-SOUTH FINACE
13 HUNGER ,POPULATION ,AND SUSTATNABLE DEVELOPMETN
14 CHARTING THE FUTURE:COOPERATION AND CONFLICT IN THE GLOBAL ECONOMY
This edition of our book carries over many of the objectives and themes central to the first two editions while also addressing a number of new topics and issues. Once again, our goal has been to produce a clear and
readable textbook without sacrificing sophistication or rigor. We recognize the difficulties that students face in mastering a subject that lies at the intersection of two complex fields—political science and economics. We therefore take great care to explain basic economic concepts and to offer a balanced blend of theory, history, and policy. We believe that the resulting volume is accessible enough to be used as a supplement in an introductory course on international relations, but challenging enough to be assigned as a main textbook for upper level courses.
As before, we depict the international political economy as a realm of both struggle and cooperation. We show how these contrary imperatives coexist and how the mix between the two varies over time, across countries, and within issues. In pursuing this theme, we weave together theory, concepts, and arguments throughout and tie these ideas closely to the topics under discussion.
The third edition includes a number of pedagogical aids, including illustrations and tables, anecdotes, an annotated bibliography at the end of each chapter, a glossary of essential terms, a list of acronyms, and a list of relevant Web links.
Introduction: The Political Economy of International Affairs
understanding international affairs is exceedingly difficult and perhaps impossible without a clear sense of how politics and economics are related. This assertion, very controversial even fifteen years ago, may still
provoke dissent and perhaps confusion from students today. After all, political science is taught in one department and economics in another. One looks at power and the other at money and products. The study of international political economy is premised on the view that such distinctions are artificial and, ultimately, unproductive. Rather, international political economists promote the view that great gains in understanding may be had by focusing on the intersections between political and economic relationships in world affairs.
One way to see the benefits of thinking in terms of international political economy is to consider some of the events in international affairs and observe how closely politics and economics are entangled. Examine the following account of a recent international financial crisis. Why is the crisis happening to Mexico, and why is this a problem for the United States?
During the winter of 1994—1995, the collapse of the Mexican peso threatened the stability of the international financial system. The United States and several important international economic organizations responded by providing Mexico with large loans. They did this not out of beneficence, but rather because an unchecked crisis in Mexico could have brought on a global financial crisis with great potential harm to many countries. What caused the crisis?