Global Economics

Global Economics looks beyond the mere interaction of national economies as is implied by the term 'international economics.' It examines the integration of national economies into the emerging global economy. In keeping with the subtitle A Holistic Approach, the book considers the roles of technology, political arrangements, the rule of law, natural resources, climate change, social institutions and values, in addition to the role of economics (narrowly defined). In fact, recourse to abstract economic analysis is restrained, and discussion is replete with concrete examples and case studies. Specific topics include trade theory, policy and agreements, foreign exchange, exchange rate determination and hedging, international capital and labor flows, financial crises and development. The book details the changes that took place with the Industrial Revolution and the subsequent spread of market economics and democratic government. It develops the classic theory of comparative advantage, and then applies and extends the theory to explain the complex trade patterns of today. It uses game theory to analyze trade policy, and the tragedy of the commons to address the resource curse. The book covers topics such as the relationship of defense to trade policy not typically considered by international economics, in addition to taking a fresh approach to the traditional topics.

This book belongs in the vacation reading of many of today’s senators, representatives, administration officials, and their respective staffs. It is an efficient compilation of international economic orthodoxy—a set of powerful ideas that set the benchmarks of modern, market-driven international economics against which alternative ideas and policies must be calibrated. The setup is conventional, starting with trade theory and trade policy, then international factor transfers, leading to international monetary economics, exchange rate determination, international price and income adjustments, and ending with chapters on global financial crises and the role of developing countries. The text is spare and readable: there is little in the way of ifs, ands, or buts to cloud the argument. Presumably this can come after the reader masters the basics. Today’s challenges to a rule-based international economic and financial order desperately require these basics, and this book delivers them. Highly recommended for collections intended for undergraduate students of economics and politics.Summing Up: Recommended. Upper-division undergraduates through faculty., Global Economics: A Holistic Approach is a valuable contribution to the trade literature, especially in the current political climate where protectionism and mercantilism are once again in vogue. In the tradition of Adam Smith, David Ricardo, Frédéric Bastiat, and other early trade writers, Clifford Thies does not limit his book to matters traditionally considered “economics” but broadens his discussion to all of humanity and its institutions, putting trade into proper context and providing valuable insights into the true nature of global trade. . . Thies’s book is a powerful antidote to that overly-narrow focus on trade and an excellent admonishment that we need to consider all the pieces on the board, not just the ones that look like us or are segregated into arbitrary political groups., At a time when the evening news is filled with talks of tariffs on steel and aluminum, the future of NAFTA and the Trans-Pacific Partnership, Clifford Thies' discussion of "Global Economics" is a refreshingly clear presentation of what every citizen should understand about these issues of political economy. The book presents the concepts of trade, exchange rates, monetary economics and immigration flows at a level comprehensible to a bright high-school student yet engagingly clear and concise for those with higher education. This book should be required reading for our legislators and pundits.

Clifford F. Thies is Eldon R. Lindsey Chair of Free Enterprise and professor of economics and finance at Shenandoah University.