Do exchange rates work?

Cites a new study which asserts that the "international adjustment mechanism," that is the link between the exchange rate and the GNP deficit, is working well. Mention of the International Monetary Fund and World Bank meeting in Bangkok on October 11, 1991; Ways in which the mechanism is affecting the American economy; Discussion of the research by Paul Krugman of the Massachusetts Institute of Technology (MIT) concerning the international adjustment mechanism and theories to account for the broken link between exchange rates and trade balances.