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Comments on an article about the effect of international trade between a borrowing country on an inconvertible paper basis and a lending country on a specie basis. Definition of borrowing and lending; Analysis of international trade; Discussion on the disproportion of borrowing transactions; Effect of loan transaction on prices.

The author comments on the papers presented by economists Ronald I. McKinnon and Lawrence B. Krause focusing on the fixed and flexible exchange rates. He states that McKinnon is worried about the dangers of inflation, while Krause has an equal concern between the deflationary bias of fixed exchange rates and increased inflation as a result of flexibility. He mentions that McKinnon wants to retain short-run stability in exchange rates by thwarting economic policy fine-tuning. He disagrees with Krause's belief that capital movements and international trade need to be pushed to the limits of comparative advantage in order to maximize growth.

This section presents abstracts of articles published in the July 1965 issue of the journal Oxford Economic Papers. H. W. Richardson's article, Over-Commitment in Britain, examines the proposition that an economy may have so high a proportion of its resources tied up in a narrow range of long-established industries that the freedom to develop new industries is restricted. The term over-commitment is used to describe this condition, and is suggested as an important cause of the slow growth of new twentieth-century industries in Britain in their early decades. Unlike other explanations of this lag, it is consistent with the dramatic resurgence of the British economy in the 1930s for as the staple industries' hold on the economy was relaxed the effects of over-commitment were bound to pass away. The article by Alan L. Ginsburg and Robert M. Stern, The Determination of the Factors Affecting American and British Exports in the Interwar and Postwar Periods, developed and tested three variants of a model of export performance for America and Britain that included not only the relative prices of exports, but in addition separated through the use of dummy variables the influences of characteristics associated with individual commodities, years, and regions of destination.

The article presents the comments of college teacher Knut Wicksell about an article by F.W. Taussig about international trade under depreciated paper currency, published in the May 1917 issue of the "Quarterly Journal of Economics." Taussig's response to the comments is also presented. Wicksell says that Taussig discusses the trade between England and the U.S. as an example which is a complex issue. Taussig says that he does not agree with Wicksell's comments.