This short book, written in an informal and controversial style, shows how models of self–organization can be applied to many economic phenomena – how the principles of "order from instability" which explain the growth of hurricanes and embryos, can also explain the formation of cities and business cycles; how the principles of "order from random growth" can explain the strangely simple rules that describe the sizes of earthquakes, meteorites, and metropolitan areas. Without discarding the powerful insights of conventional economic analysis, Krugman weaves together strands from many different disciplines, from location theory to biology, to create a surprising new view of how the economy forms structures in space and time.
2. The Age of Diminished Expectations.
3. Geography and Trade.
4. Currencies and Crises.
5. Target Zones and Currency Bands.
6. Trade with Japan.
7. Peddling Prosperity.
8. Empirical Studies of Strategic Trade Policy.