Reference Reviews

Lawrence Looks at Books

The Princeton Encyclopedia of World Economy, edited by Kenneth A. Reinert, Ramkishen S. Rajan, Amy Jocelyn Glass and Lewis S. Davis. 2 vols. 1,246p. Princeton, NJ: Princeton University Press, 2009. 978-0-691-12812-2; 2008-20573. $250.

The events of the past year have demonstrated that more than ever no nation operates in isolation from the world economy. Petroleum prices, epidemics, crop failures and banking disasters can all produce ripple effects that sweep over almost every continent. With globalization the world economy is more interconnected and complicated than ever before. With that said, it is a small wonder that any proposal to change trade policies or mitigate the effects economic events attract dramatically differing assessments from many quarters. In the face of such divided opinions, government decision-makers, much less lay people, are often confounded by the complexity of economic issues. This scholarly encyclopedia is an attempt to describe the key features of international trade, finance, production and economic development today. From fair trade to hedge funds many of the 322 essays of this encyclopedia explain basic concepts and principles of international economics. Economic theories and models are explored in articles on foreign direct investment, growth in open economies and monopolistic competition. Also reviewed is the impact of NAFTA, GATT, the IMF, the World Bank and a host of other international agreements and organizations. The importance of foreign aid, tariffs and capitol controls is demonstrated in discussions of monetary policies and instruments. From balance of payments to exchange rates, the tools that economists use to study financial trends are illuminated. Special problems like child labor, the digital divide and corruption also are investigated. The international team of experts presenting these issues includes scholars from more than 30 countries and international agencies. Each entry provides authoritative discussion of the subject citing numerous historical examples. Substantial bibliographies provide sources for additional research. Chronological coverage extends through the end of 2007. Had this work been completed a year later, one might expect very different discussions of bailouts, early warning systems and moral hazards. Yet one could hardly hope for a more thorough presentation of the chief issues of world economics. This guide is highly recommended for academic libraries.