This paper is intended to teach students, business managers, and policy makers about the fundamentals of trade. Whether it is between countries, firms, or individuals, the basics are universal. We start by describing the production possibility frontier. This frontier defines the combinations of...

Like many industrial nations over the last four decades, the Japanese economy has undergone a number of regime shifts, making parameter estimations difficult. One of the most significant shifts occurred in inflation in the mid 1970s as OPEC suddenly raised oil prices. This abrupt change likely...