This paper investigates the role of exchange rates in balance of payments theories. It explores the sixteen approaches to the balance of payments, the concept of an “equilibrium” trade balance and sequential “stages” of the current account. It examines fiscal and demographic influences...

It has been over fifty years since Stolper and Samuelson (1941) pointed out that whereas free trade may be beneficial to a country in aggregate terms, even a broadbased factor such as labor may be hurt by the price changes which trade brings about. In particular, a staple of Heckscher-Ohlin...

This paper explores the relationship between debt, growth, and poverty and the international monetary system. With a well-functioning international monetary system, economic policy works well, instruments are assigned to targets appropriately, and discipline is maintained. The fixed exchange...

The Canadian dollar is presently (1990) overvalued. The Canadian authorities should let it depreciate promptly to a level of 78 to 80 US cents, and then keep it firmly within this range. The general case is based on modern monetary theory and history. Specific criticisms of the Bank of Canada's...