Foundations of International Macroeconomics

Maurice Obstfeld, Kenneth Rogoff

How do countries borrow, lend and trade over time, and what does that reveal about trade deficits, exchange rates and money?

At a glance

You will understand current account imbalances as trade between today and tomorrow, made through borrowing and lending between countries
You will see why a country can hold its debt steady relative to output by paying only the excess of interest over growth
You will weigh the evidence on whether poorer countries catch up with richer ones, and why a short period of data may hide slow convergence