The Economics Book

279 Small variations in velocity will shoot a pinball in totally different directions. Like a pinball player, economists cannot ...

280 See also: Protectionism and trade 34–35 ■ Comparative advantage 80–85 ■ Economies of scale 132 ■ Market integration 226–31 T ...

281 See also: Behavioral economics 266–69 ■ Market uncertainty 274–75 ■ Sticky wages 303 ■ Searching and matching 304–05 A new f ...

THE EAST ASIAN STATE GOVERNS THE MARKET ASIAN TIGER ECONOMIES ...

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284 A fter World War II the economies of a cluster of East Asian nations grew dramatically. Led by a new set of actively interve ...

285 South Korea’s rapid development was initiated by Park Chung-hee, an army general, in 1961. He restored relations with Japan, ...

286 ASIAN TIGER ECONOMIES The rapid rise of the Asian Tigers was based on exports. Large facilities to handle container ships, s ...

287 Like most Chinese cities, the eastern city of Hangzhou has seen rapid growth and a spreading urbanization as China has indus ...

BELIEFS CAN TRIGGER CURRENCY CRISES SPECULATION AND CURRENCY DEVALUATION ...

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290 In “first generation” crisis models, when one currency is fixed to another, its “real” value, or shadow rate, may fall below ...

291 See also: Economic bubbles 98–99 ■ Rational expectations 244–47 ■ Exchange rates and currencies 250–55 ■ Financial crises 29 ...

292 SPECULATION AND CURRENCY DEVALUATION such as the crisis in Mexico in However, in 1992–93, a currency crisis erupted in the ...

CONTEMPORARY ECONOMICS 293 The East Asian financial crisis The 1997 East Asian crisis seemed to come from nowhere, overwhelming ...

294 AUCTION WINNERS PAY OVER THE ODDS THE WINNER’S CURSE A uctions have been around for a long time, but economists have only re ...

295 See also: The competitive market 126–29 ■ Risk and uncertainty 162–63 ■ Social choice theory 214–15 ■ Game theory 234–41 Sel ...

STABLE ECONOMIES CONTAIN THE SEEDS OF INSTABILITY FINANCIAL CRISES ...

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298 T he instability of economic systems has been debated throughout the history of economic thought. The view of classical econ ...