Price Behavior in the Light of Balance of Payments Theories / Irving B. Kravis, Robert E. Lipsey.

Format:

Book

Author/Creator:

Kravis, Irving B.

Contributor:

National Bureau of Economic Research.

Lipsey, Robert E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0181.

NBER working paper series no. w0181

Language:

English

Subjects (All):

Balance of payments.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1977.

Cambridge, Mass. : National Bureau of Economic Research, 1977.

Summary:

The purpose of this paper is to describe the behavior of that subset of prices and price indexes that is relevant to the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this juncture as falling into two main groups -- the "standard" theories and the more recent monetary theories. Each of these is examined to determine the assumptions and predictions made about particular kinds of prices, and the empirical evidence regarding these prices is then set out. Although some assessment of the theories -- solely from the price aspect -- is offered, the emphasis is on the price structure and price behavior that ought to be captured in a satisfactory theory of the mechanisms of international adjustment. For pragmatic reasons, attention is placed mainly on the theory relating to exchange rate changes rather than on the explanation of adjustment with fixed exchange rates.

Notes:

Print version record

June 1977.