New Releases by Ben S. Bernanke

This brand-new principles of economics text is the most exciting new entry in years. Written by two well-known and well-respected economists, Bob Frank and Ben Bernanke, the text seeks to teach introductory students the core economic concepts—the essence of economics—without overwhelming them with details. Principles of Economics presents the material in an intuitive way that avoids excessive math. The authors introduce a well-articulated short list of core principles, reinforce them by illustrating and applying each principle in several contexts, and then ask students to work exercises to see what they’ve learned.The text seeks to create “Economic Naturalists”; that is, after reading the text, students will ask (and answer) questions about their economic environment. For example, students will see Braille dots on drive-up ATMs and ask why they’re there. Peppered with such thought-provoking examples, Frank and Bernanke not only engage students, but teach them to see each feature of their economic landscape as the reflection of an implicit or explicit cost-benefit calculation.

This book covers the essential topics of microeconomics while exploring the relationship between economics analysis and human behaviour, which, in this context, is of significant interest to today's academic community. The clear narrative appeals to students, and the numerous examples help the development of economic intuition. The text introduces modern topics not often found in intermediate textbooks. Readers are encouraged to develop the distinctive mindset known as thinking like an economist.

This paper examines the relationship between inflation, exchange rates, and the pattern of international trade and payments in a small economy with utility-maximizing agents and a transactions demand for money. Fully anticipated inflation has real effects in the model through its role as a tax on money and thereby on monetary transactions. An increase in the rate of monetary expansion generally reduces the value of domestic output and alters the composition of domestic production. The result is a change in the pattern of international comparative advantage and trade flows. The initial depreciation of the exchange rate following an increase in the rate of monetary expansion is accompanied by a trade surplus and capital outflow, while the subsequent depreciation is accompanied by a trade deficit.