This paper investigates a model of "exchange rate protection" with two countries, either or both of then seeking to protect their tradable sectors by maintaining undervalued exchange rates. The equilibrium that would result is demonstrated and shown to be inefficient, suggesting that, in...

The term 'Galton's fallacy' has more than one meaning. Usages of the term starting with Francis Galton are reviewed. Recently the term has been used to denote problems encountered when the neoclassical convergence model is tested in a cross-section of country GNP histories (Barrow-Baumol...