Comments on Professor Johnson’s Paper: 3

My remarks with regard to Professor Johnson’s paper are in large measure of a methodological and general character. I presume that the theme under consideration may cause headaches. In principle we have to consider the role which economic theory can play in relation to the complicated problem of the future of international economic relations. The subject matter seems without limits, because it involves everything which possibly has to do with this future, and this may apply to the whole framework of economic theory. Although both the theme of the Congress and the paper of Professor Johnson speak of the theory of ‘international trade’, I think one should interpret this in a broad way so as to cover also movements of capital and migration of labour. The problem of the theory of international trade in its bearing on the future of international economic relations may be considered in two ways: in the first place, one may analyse the role which economic theory may play in the prediction of the future development of international economic relations; the second way is to consider what role economic theory can play with regard to future problems of international economic policy. We may say that, generally speaking, the empirical value of the theory of international trade is the core of the theme.