International Economics

1008 Pages·2014·39.63 MB·English

by  Robert C. Feenstra

Chapter 21 ■ The Euro 843
■ Defi cit limits rule out the use of active stabilization policy, but they also
shut down the “automatic stabilizer” functions of fi scal policy. Recessions
automatically lower government revenues and raise spending, and the
D Graphics Worth: Feenstra Economics
resulting defi cits help boost aggregate demand and offset the recession.
This makes defi cit limits tough to swallow, even if monetary policy auton-
omy is kept as a stabilization tool. In a monetary union, where states have
2 Preface also relinquished monetary policy to the ECB, the pain of hard fi scal rules
is likely to be intolerable.
■ Once countries joined the euro, the main “carrot” enticing them to follow the
SGP’s budget rules (or to pretend to follow them) disappeared. Hence, surveil-
lance, punishment, and commitment all quite predictably weakened once the
euro was up and running.
These failures of the SGP came to light only gradually, but by 2003 the pact was
in ruins, once it became clear that France and (ironically) Germany would be in
breach of the pact and that no serious action would be taken against them. As we
see next, fi scal problems in the Eurozone have only gotten worse, although whetherA MODERN BOOK FOR
the principles of the SGP can, or should, be reinstated is the subject of ongoing
A MODERN AUDIENCE
disagreement.
Feenstra and Taylor’s text incorporates
fresh perspectives, current topics, and
4 The Eurozone in Crisis, 2008–2013 up-to-date empirical research. It expands
For almost 10 years, Eurozone policy making focused on two main macroeconomict he study of international economics to
goals: the ECB’s monetary policy credibility and infl ation target, seen as a broad
encompass the latest theories and world
success given low and stable infl ation outcomes; and the Eurozone governments’
fi scal responsibility, seen as a failure given the general disregard for the SGP rules.e vents.
However, policy makers (like their counterparts all over the world) failed to spot key
macroeconomic and fi nancial developments that were to plunge the Eurozone into
crisis in 2008 and beyond.
Boom and Bust: Causes and Consequences of an Asymmetrical Crisis With
a fanatical devotion to infl ation targeting, the ECB (and its constituent central banks)
paid insuffi cient attention to what was historically a primary responsibility of central
banks, namely, fi nancial stability. Within some parts of the Eurozone (as elsewhere) The chapter on the euro covers
borrowers in the private sector were engaged in a credit-fueled boom. In other parts
of the Eurozone, savers and banks funneled ever more loans toward those borrow- the dramatic developments
ers. The creditors were core Northern European countries like Germany and the
since 2010, including the Greek
Netherlands; the debtors were fast-growing peripheral nations such as Greece, Ireland,
Portugal, and Spain (so called because they are located geographically on the periph- debt restructuring; assistance
ery of Europe).
In Greece, much of the borrowing was by a fi scally irresponsible government that programs in Spain, Ireland and
was later found to be falsifying its accounts. In the other peripheral nations, how- Portugal; and the Cyprus bank-
ever, the fl ow of loans funded rapid investment and consumption surges, including a
residential construction boom that in places (e.g., Dublin and Barcelona) rivaled the ing crisis.
property bubble in parts of the United States. In Ireland and Spain, even as this boom
took place, the governments had maintained a fi scal position close to balance, or even
surplus; the asymmetric boom helped them at that time. The trouble was to come
222Part 3 ■ New Explanations for International Trade
when the boom gave way to a severe asymmetric bust.
page 843 FIGURE 7-14
Trade surplus 140
(US$ billion)
Feenstra_IntEcon_3e_Ch21.indd 843 120 1/10/14 2:03 PM
100
United States
80
United Kingdom
60
40
20
India
0
–20
1970 1975 1980 1985 1990 1995 2000 2005 2010
Trade Surplus in Business Services This figure United Kingdom, its chief competitor, up until about
shows the combined trade surplus in computer and 2000. Since then the surpluses of the United Kingdom
information services, insurance, and financial services and of the United States have been similar. India’s
THEORY TESTED AND REFINED for the United States, the United Kingdom, and India surplus began growing around 2000 and is based
from 1970 to 2010. The U.S. surplus in these categories entirely on its exports of computer and information
of services has been growing since about 1985, with an services.
Feenstra and Taylor’s text covers many
occasional dip, and exceeded the trade surplus of the Source: World Bank World Development Indicators.
empirical studies that prove or refute ex-
isting theories, revealing important new
3 The Politics and Future of Offshoring
lessons about the determinants of trade,
Offshoring is controversial and is often the topic of political debate. In
factor flows, exchange rates, and crises.
February 2004 the first quote at the beginning of this chapter appeared in the
Economic Report of the President. The writer of that sentence, Harvard economist
N. Gregory Mankiw, who was chairman of the Council of Economic Advisors,
page 222 also said that “outsourcing is just a new way of doing international trade. More
things are tradable than were tradable in the past, and that’s a good thing.” Those
comments were widely criticized by the Democrats and Republicans alike, and
Professor Mankiw later apologized in a letter to the House of Representatives,
writing, “My lack of clarity left the wrong impression that I praised the loss of
U.S. jobs.”
In the Democratic primary elections of 2007 and in the presidential campaign
of 2008, this topic came up again. Senators Barack Obama and Hillary Clinton
both promised that, if elected, they would end tax breaks for companies earning
profits overseas:14
Obama, Nov. 3, 2007: When I am president, I will end the tax giveaways to
companies that ship our jobs overseas, and I will put the money in the pockets
of working Americans, and seniors, and homeowners who deserve a break.
14 These quotations and some material that follows are taken from http://www.factcheck.org/2008/02/oil-
and-gas-company-tax-breaks/ (accessed August 23, 2013).
Feenstra_IntEcon_3e_Ch07.indd 222 12/3/13 10:33 AM
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Chapter 10 ■ Export Policies in Resource and High-Technology Industries 351
MODERN TOPICS
In March 2012, the United States, the European Union, and Japan fi led another Feenstra and Taylor’s text shows why trade
WTO case against China charging that it applied unfair export restrictions on its rare
and capital flows have been liberalized
earth minerals, as well as tungsten and molybdenum. The fi rst step in such a case is
for the parties involved (the United States, Europe, and Japan on one side; China and allowed to grow. The text focuses
on the other) to see whether the charges can be resolved through consultations at
more attention on emerging markets and
the WTO. Those consultations failed to satisfy either side, and in September 2012,
the case went to a dispute settlement panel at the WTO. The Chinese government developing countries—regions that now
appealed to Article XX of the GATT, which allows for an exception to GATT rules carry substantial weight in the global
in cases “relating to the conservation of exhaustible natural resources.” But the WTO
economy.
ruled against China, who is expected to appeal.
Regardless of the ultimate outcome of that case, it appears that China has already
changed its policies on rare earth minerals. By the end of 2012, China realized that
its policy of export quotas for rare earth minerals was not having the desired effect
of maintaining high world prices. It therefore shifted away from a strict reliance on
export quotas, and introduced subsidies to help producers who were losing money.
These new policies are described in Headlines: China Signals Support for Rare
Earths. The new subsidy policy might also lead to objections from the United States,
the European Union, and Japan. But as we have seen earlier in this chapter, it is more
diffi cult for the WTO to control subsidies (which are commonly used in agriculture)
than to control export quotas.
A fi nal feature of international trade in rare earth minerals is important to rec-
ognize: the mining and processing of these minerals poses an environmental risk,
because rare earth minerals are frequently found with radioactive ores like tho-
rium or uranium. Processing these minerals therefore leads to low-grade radioactive
waste as a by-product. That aspect of rare earth minerals leads to protests against
the establishment of new mines. The Lynas Corporation mine
in Australia, mentioned in the Headlines article, processes the
minerals obtained there in Malaysia. That processing facility was
targeted by protesters in Malaysia, led by a retired math teacher
named Tan Bun Teet. Although Mr. Tan and the other protestors
did not succeed in preventing the processing facility from being
oeigwcnenopo ls?elaru nlcTdrpceewhodh tor,iih dsdnt aehaeet ne)n dt,yc vhee widem r wiohrdaanoi ntddmshdeieo e ltaafnmhocytatraa tii nlv t h cuedaio fingwaluhedcanmt- stauttremlerysci o’wnahs g opla pauuriwriltnsod sevpd .sbo ru Beelbcvs ueetesstxucs p arw(ueeoihnn sroetecven lriuorde otdf hf wnirtenomhi glmcele o nty emMhotxaipupsall r alowa nrdyoiyasisws knittasnoge., TIM WIMBORNE/Reuters/Corbis
This case illustrates the potential interaction between international Protesters from the Save
Malaysia Stop Lynas group
trade and the environment, a topic we examine in more detail in demonstrating outside a
the next chapter. ■ hotel in Sydney, Australia.
7 High-Technology Export Subsidies
We turn now to consider high-technology fi nal products. This sector of an economy
also receives substantial assistance from government, with examples including subsi-
dies to the aircraft industries in both the United States and Europe. In the United
States, subsidies take the form of low-interest loans provided by the Export-Import
page 351
Feenstra_IntEcon_3e_Ch10.indd 351 1/8/14 10:07 AM
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Chapter 12 ■ The Global Macroeconomy 417
HEADLINES
Chapter 8 ■ Import Tariffs and Quotas Under Perfect Competition 269
Economic Crisis in Iceland
International macroeconomics can often seem like a dry and abstract
APPLICATION subject, but it must be remembered that societies and individuals can be
China and the Multifi bre Arrangemenptrofoundly shaken by the issues we will study. ThiAs aPrtPiclLe wIaCs AwrTitIteOn NS
just after the start of the severe economic crisis that engulfed Iceland in
One of the founding principles of GATT2 w00a8s , tfhoallto cwoinugn ttrhiee sc oshllaopusled onfo itt su esxec hqaunogtea sr ate, Aa pfi pnalnicciaalt icorisniss, ainlldu am inate real-world
to restrict imports (see Article XI of Side Bgoavre: rKnmeeyn Pt rfi oscvaisl icornissis .o Rf etahle o GutApuTt Tpe)r. Tpehrseo n shrank by more than 10%,
Multifi bre Arrangement (MFA), organizeda undn duenre mthpel oayumspenicte rso osef tfhroem G 1A%T tTo i9n% 1. 9F7iv4e, yearps olaltiecr iae rse,c oevevrey nwtass ,j uastn d empirical evidence.
was a major exception to that principle andb aelglionwniendg tthoe tiankdeu sshtraipael .countries to restrict
imports of textile and apparel products from the developing countries. Importing
countries could join the MFA and arrangRee yqkujaovtiaks— bTihlea tcerrisailsl yth a(it. eb.r,o uagfthetr d onweng otiasmtinalgl, formerly fi shing-based economy “The 550 families we welcome here
with exporters) or unilaterally (on their oIwcenl)a.n Idn’s percaocntoimcey, itnh ela itme p2o00r8t qthuroetwa s eswtiatbh -fast cash. represent about 2,700 people, and the
lished under the MFA were very detailedt haonudsa nspdse coiffi efodr mtherely awmeoll-uonfft foafm eilaiecsh textBilaec k then, the biggest worry for many number keeps going up. And we think
and apparel product that each developingi nctoou pnotvreyr tcy,o ufolrdc insegl lp etoop lceo luiknet rIireiss tion cluIdcienlagn ders was who had the nicest SUV, it will keep growing until next year, at
turn to charity to survive. or the most opulent fl at. least,” said Asgerdur Jona Flosadottir,
Canada, Europe, and the United States.
Each week, up to 550 families queue But today visible signs of poverty who manages the Reykjavik food bank.
Although the amount of the quotas was occasionally revised upward, it did not keep
up at a small white brick warehouse in are quickly multiplying in the Nordic is- For Iris, the fall came quickly.
paguep 2w6it9h the increasing ability of new supplRyeiynkgja cvioku tnot rrieecse itvoe sfreelel. fUoondd ferro mth teh eU rulgaunda yn ation, despite its generous welfare She is struggling to keep up with pay-
Round of WTO negotiations held from 19I8c6el atond 1ic9 9A4id, dteov CFealhomapipliinteesg r oc ro1gua2nn it sra■ite i so Tnwh, eer eGs atlabotlebe, a als tMhea cmrioddelce ocnlaossm iys in4c1re7asingly ments on two car loans, which she took out
to negotiate an end to this system of impotrhtr eqeu toitmaess. Tmohree MthaFnA b eefxopreir tehde ocrnis Jisa.nuahriyt 1b,y unemployment, which is up from in foreign currencies on what proved to be
2005. The biggest potential supplier of textilReu atnurd Jaopnpsasorne,l pa ro65d-uyceatsr- wolads rCethirienda , soon teh teo nine per cent in about a year, and disastrous advice from her bank, and which
HEADLINES
expiration of the MFA meant that China cmoeuclhda neixcpalo ret nagsi nmeeur,c ha nasd ith iws anfetlelodw t o oat hlaergre number of defaults on mortgages. have tripled since the kronur’s collapse.
HEADLINES
countries—or so it thought. The potentialv foolurn ate herusg esp ienncdr etahseeir ind aeyxsp odirsttsr ifbruot-m ChiIncael anders who lose their job are ini- Threatened in November with eviction
Headlines boxes offer insights into the global
posed a problem for many other countriesi.n Sg ommilek ,d berveealdo, peignggs caonud nctarniense de xfopoedc tedt itahllayt entitled to benefi ts worth 70 per from her home in the village of Vogar,
Ericsiongn oexmpoircts Cfrroims iCsh iinna wIcoeullda cnodmpete dwointaht etdh ebiyr obuwsnin eesxspeos ratn odf ianpdpivairdeula list emcse, notn of their wageesc—obnuot mthey afmrooumnt intseomrne a4t0i okniloaml emtrees d(2ia5 smoileusr)c seosu.th-
which many workers depended for their livoerl ibhoouoghdt. Tin hbeu llka ragt et hper osudpuecrmerasr kient .impordtwiningd les fast the longer they are with- west of Reykjavik, she managed to
Icnotuenrntariteios nwale rmea acrlosoe ccoonnomceircns ecda nw oiftthe nth see epmo tle“ikIn eth iaaav ld er ritysi mea eni ndt o aC bsphsetirnnadec stoe n eoxtphoerrst sa nbde cauosuet iwt ork. Coupled with growing debt, negotiate a year’s respite with her bank.
scuobujledc tl,e badut t oit tmhues lto bsse oref mjoebmsb feorer dt htehiart oswocnite hwtaieot’srs k atehnreds biinnesd tti evtixhdtiuinlagel ssI actnahdnin kab peIp caarne ld.o,” the spike in long-term unemployment is “I feel very bad and I am very wor-
profoundly shaken by the issues we will studyh.e T shaiisd a artsi chlee wpraes- pwarciktetde ng rocery bags taking a heavy toll. ried,” she said, running her fi ngers
jGusrto awfttehr tihne sEtxaprto orft sth ef rsoemve reC ehcionnao mIimc mcriefsudilsil atothfe alpytr oeadnfugtceuerl.f eJda nIucealrayn d1 ,i n2 005, exports of
2te0x0t8il,e fso allnodw ianpgp tahree lc ofrlolamps eC ohfi nitas gerxecwha rnagpei dralytI.en ,F aao rsfim enaxalaln,m ccipalolls ece,r- ikesnxisipt, o carontusdn otarf y Cofh ijnusets e tights
gaonvde rpnamnetynht ofi ssec atlo c trhiseis E. Rueraolp oeuantp Uutn pieorn p ienrcsro3en1a7 ss,eh0d0ra0 bn pkye 2boyp,0 lem0,0 ow%reh e tirnhea Jenav ne1ru0yao%rny,e aknndow Fse bruary,
aans dc oumnepmaprelody mweitnht aro ysee afrr oemar l1i%er ;t iom 9p%o.r tFsi voeehf vyapeenuradyl-rolsoon uvletae, triestsr h aheana rrdsdet cijgeotomrv seaelr iyyvo eswf fdaraosoc wmcjune psCtat innhdgi n oaaf jumped
bneegairnlnyi n1g,0 t0o0 t%ak; ea snhda pime.ports of trousers mtohree dtohzaenns troifp lpeedo.p Ole vwearaitliln gin o2u0ts0id5e, China’s
textile and apparel imports to the United States rose by more than 40% as compared
the food bank in the snow on a dreary
Rweiytkhja tvhike— yTehaer cbriesfiso rthea, ta bsr osuhgohwt ndo iwnn Figsumreal l8, -f1o2rm, ewrlhye rfi es hwineg -ibnacsleudd ee ctohneo mtoyp 20 e“Txhpeo r5t5-0 families we welcome here
March afternoon, Iris is the only one
pagIeecre sl4 atn1od7 ’st heec oUno.mS.y mina rlakteet .1260 0I8n tpharenwe l (aw),i thw efwa islstlhi ncogaws th o.t htael k.change in the value roefp rteesxetnitl ea bout 2,700 people, and the
tahnodu saapndpsa roefl fiomrmpeorlryt sw ferlol-moff efaacmhi liceos untryB. aTckh t“ehI tes nuw,ra tgsh eev eboriyfg gidmeifsfipt cowurolttr srfy of frro omrm me atCnoy h cionmane u cmambeer kaet eps going up. And we think
ituRIttTa“lMnuhcahpencaetrrryE RoeoanedligaIkaauw n en ntjecnetpt a ayshaoust doxavtppi tn rivp imr c wocpakse,daehJ enmteariwornaAthtsnereooanyr iskeehiemld l,spet, l lrrdo s y( ofe obuwt oi spocrcotgnnpee)rheorfo c o, iioo Fipttevutssonhoaadefexroung d m a iupFrm5 b6tcnfsvicporr5i5re, liegiii”teevbr0-sceeeseo y uet kss s sf.hepffr fu frao alowreiotaoembrgrooo real- m8jghsdiolm r elioate-t ilekc hhedn1fh 2ertrse ioeee2-o 0s rtIuc xam,qace0orU ospctrutiw 4e isiihseetstorn ethhuier tnits i nodceeioet,.see oeh xnM2duopc0 nwoSeIoalshoF0atctrrdnritA nr5aete ttaeB ytt dleh, t hebaau ,qq tre 3e,nnyet uohnwjwtsu ds o 8 esdai a,eop ermcnoueu bnte%sdturTtkaeinsiop tertb oohnnelrutsariaetd yeysn shnege coc mtc aiit-wtn ,b e iln nme lhyp aohipca oocadde n n enmuuae l oospteftiortaeprrslv thnonhku site yaw icsdihdpiithelergsma ge pnwedrahi si ea lSan tlebngblero“eo ynbe eosmtl otnJa ycf i eed t c4 nmnhaaitilc oua flgshttn1,g1nl al cs iu hintaal- sa sdnnwy 0whu acy stii gsn engibn.hse%tha ttheblnr ngiho a rahKrinvnireatc suarasseyeu oehg-hn tt otttti tuorhieh .no iyn1aonro ansls imweei elde,uscf luNBc 2 yy r i,drasao2tmeuorw e.eu 0 sh,p rws0r twaat p mgie%dt oehptsrHh0e o, oi,hnvei ”Sfrocel 5nnp.efrr oo aU io ao,g s.rcrniwlt d pVtransmoldiheCdaeyy- c,isrsigessd s”Iteoh p ssdtdhKioclt hhnaeurosauilwmideeyyo-nearttcfei hesae n t FSwfhtanosgsogohtestti a rootle,rs,xmewslr” r toioI aaigikitterusnslnennhhie sre assa tesd eee,sicaw.tgp d urdtoe u rhvgs rgAciee rcgastn oelhrgficw anfleeiorleig rlonasdR m gcntueoaos yrnh,um k kewnJwjeeratoh heivbqnilpacia uakt hnn i u cpkefsFpok,rxhl olootaeywv nsd .etyiad otdebdh o awao tkropnht ,ot aikbciuay.rhett-, HALLDOR KOLBEINS/AFP/Getty Images
menecdh aonf icthale MengFiAne qeru, otaan:d 1 8h%is ffoerll oPwa kisata lnar;g a1ec 6nr%ousms bftoehrre o Cifs dalaemnfadbu ojltudss itoa n;t w amono dyrte g8aa%rgs e astg.oo ,9 a%hsa vfeo Ptrrr iotpthleeesdt esrisn ocuet sthidee ktrhoen Iucre’sl acnodlilca ppsaer.liament in Reykjavik demand that the government do more
a hyperactive banking sector fl ooded the to improve conditions for the recently poor.
vPohluinlitpeperisn essp,e Bnda ntghleaidr edsahy,s Indidsitari,b Iunt-donesiIace, laanndde rSsr wi hLoa nloksae . tAhe idr rjoopb ainre pinrii-ce dueT htore attheen ed in November with eviction
Continued on next page
irnegm moivlka,l borfe atdh,e eigmgsp oanrtd qcuanontae di sf oeoxda ctlyti awllhy aetn wtitel epdr etod ibcetn ferfio tms w tohreth t h70e opreyr, as fwroem m hoerv eh ome in the village of Vogar,
donated by businesses and individuals cent of their wages—but the amount some 40 kilometres (25 miles) south-
or bought in bulk at the supermarket. dwindles fast the longer they are with- west of Reykjavik, she managed to
16 F“iIg uhraev 8e- 1ti2m aen dt oth sep weenldfa roen e sottimheartse sa innd t he foolulot wwinogr kp.a rCaogurapplheds arwei tfrho mg rJoawmiensg H daerrbitg,a n annde gGoetoiafftree ya year’s respite with her bank.
tBhaartr’osw tsh, e2 0b0e9s,t “tTheisntgin gI tthhein Tk hIe ocAaryvn aodifo lTa,”rb adlee t Phnoeol iswcpyi::k Ee viind elnocneg -ftreormm tuhnee Ambprluopytm Eenndt iosf the M“uI ltfiefi eblr ev ery bad and I am very wor-
hAer rasnagide maesn th,”e Tphree -Rpeavciekwe do f gErcooncoemryi csb aangds Stattisatkicisn, gvo al. h9e1a(2v)y, ptpo.l l2.82–294. ried,” she said, running her fi ngers
full of produce. International Economics
In a small, close-knit countryI noftF eejeurnnssttar at_IinotEncoan_l 3eT_rCahd12e.indd 417 11/8/13 10:13 AM
317,000 people, where everyone knows
International Macroeconomics
everyone, the stigma of accepting a
hand-out is hard to live downE asnsde notfi als of International Economics
the dozens of people waiting outside
Feenstra_IntEcon_t3he_eC hf0o8o.idnd db a 2n6k9 in the snow on aF odrr emaryo re information, go to www.worthpublishers.com/economics 12/18/13 9:27 AM
March afternoon, Iris is the only one
willing to talk.
“It was very diffi cult for me to come
hnwjwtoeeoerbnurTta et hnriat ynegoti- in lohcaoc uae ootprrsnhke hithe nwras aagroenbsm a edt4ml agst1c iuhi-snnycy enhetblriha avnrarasuog-ntttuo . ya slsmwldluB y,aomuw .srwt mie tho,hne”onr o , swlt aodha isiesdsIt p stholthhaerseeyy-r HALLDOR KOLBEINS/AFP/Getty Images
across the island just two years ago, as Protesters outside the Icelandic parliament in Reykjavik demand that the government do more
a hyperactive banking sector fl ooded the to improve conditions for the recently poor.
Continued on next page
Feenstra_IntEcon_3e_Ch12.indd 417 11/8/13 10:13 AM
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third edition
international
economics
D Graphics Worth: Feenstra Int Trade Economics
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D Graphics Worth: Feenstra Int Trade Economics
third edition
international
economics
ROBERT C. FEENSTRA ALAN M. TAYLOR
University of California, Davis University of California, Davis
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About the Authors
mon
Har
Bud
Robert C. Feenstra and Alan M. Taylor research associates of the National Bureau of Economic
are Professors of Economics at the University of Research, where Feenstra directs the International
California, Davis. They each began their studies Trade and Investment research program. They have
abroad: Feenstra received his B.A. in 1977 from both published graduate level books in international
the University of British Columbia, Canada, and economics: Offshoring in the Global Economy and Product
Taylor received his B.A. in 1987 from King’s College, Variety and the Gains from Trade (MIT Press, 2010),
Cambridge, U.K. They trained as professional econo- by Robert C. Feenstra, and Global Capital Markets:
mists in the United States, where Feenstra earned his Integration, Crisis and Growth (Cambridge University
Ph.D. in economics from the Massachusetts Institute Press, 2004), by Maurice Obstfeld and Alan M. Taylor.
of Technology in 1981 and Taylor earned his Ph.D. in Feenstra received the Bernhard Harms Prize from
economics from Harvard University in 1992. Feenstra the Institute for World Economics, Kiel, Germany,
has been teaching international trade at the under- in 2006, and delivered the Ohlin Lectures at the
graduate and graduate levels at UC Davis since 1986, Stockholm School of Economics in 2008. Taylor was
where he holds the C. Bryan Cameron Distinguished awarded a Guggenheim Fellowship in 2004 and was
Chair in International Economics. Taylor teaches awarded a Houblon-Norman/George Fellowship by
international macroeconomics, growth, and economic the Bank of England in 2009–10.
history at UC Davis, where he also holds appoint- Feenstra lives in Davis, California, with his wife,
ments as Director of the Center for the Evolution of Gail, and has two grown children: Heather, who is
the Global Economy and Professor of Finance in the a genetics counselor; and Evan, who is a musician
Graduate School of Management. and entrepreneur. Taylor also lives in Davis, with his
Both Feenstra and Taylor are active in research and wife, Claire, and has two young children, Olivia and
policy discussions in international economics. They are Sebastian.
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