DISCUSSION.

The article comments on a paper published within the issue, "The Balance of Payments Adjustment Process Revisited," by Helen B. Junz. The author focuses on the phenomenon of balance of payments adjustment when industrial countries face higher account deficits, rates of wage-price inflation, and levels of unemployment than they are unaccustomed to. The author notes that these difficulties are unevenly distributed among industrial countries, and have created doubt and confusion over the effectiveness of traditional economic policy instruments. The author believes that the major problems of balance of payments adjustment are soluble by a return to sensible domestic economic policies in Europe and Japan, where decisive fiscal and monetary policy action appear to be called for.