One issue in the argument about the merits of pegged and floating exchange rates involves the magnitude of transactions costs in the foreign exchange market under alternative exchange rate regimes. The higher the transactions costs, the greater the deterrence to international trade. Moreover,...

The past 35 years have been the most tumultuous in international monetary history. Nearly one hundred national banking systems collapsed, many more than in any comparable previous period. The range of movement in market exchange rates and the extent of the deviations of market exchange rates...

U.S. manufacturing employment has declined from a peak of nearly twenty million in 1979 to less than thirteen million in 2018. The U.S. trade deficit has increased by $600 billion, about 3 percent of U.S. GDP, since 1980. The first question analyzed in this paper is how much of the decline in...