1. DOMESTIC POLICY OBJECTIVES AND THE BALANCE OF PAYMENTS.
- Author
-
DUESENBERRY, JAMES
- Subjects
BALANCE of payments ,HOME economics ,RESERVES (Accounting) ,GOVERNMENT securities ,FOREIGN exchange ,EMPLOYMENT - Abstract
The arrangements for international trade and payments embodied in the Bretton Woods agreements reflected two aspects of the experience of the interwar period. On the one hand, many economists felt that a domestic policy aimed at full employment, could at times, be inconsistent with fixed exchange rates and a liberal trade policy. On the other hand, the attempts of individual countries to free domestic policy from the constraints of the balance of payments, by unilateral devaluations, or by protectionist devices, led to retaliation, competitive devaluations, and competitive increases in trade restrictions, which disrupted international trade. [ABSTRACT FROM AUTHOR]
- Published
- 1966
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