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Exchange rates and balance-of-payments adjustment - General principles and some recent examples


  • William A Allen


In the context of the widespread adoption of flexible exchange rates, the purposes of this paper are, first, to go over the well-tilled ground of the principles of balance-of-payments adjustment, trying to interpret these principles in ways relevant to current conditions, and second to discuss some recent cases in which balance-of-payments adjustment policies have been used. The paper offers a number of conclusions about the role of exchange rates in balance-of-payments adjustment.

Suggested Citation

  • William A Allen, 1980. "Exchange rates and balance-of-payments adjustment - General principles and some recent examples," BIS Working Papers 3, Bank for International Settlements.
  • Handle: RePEc:bis:biswps:3

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    References listed on IDEAS

    1. Kenneth Shepsle & Barry Weingast, 1981. "Structure-induced equilibrium and legislative choice," Public Choice, Springer, vol. 37(3), pages 503-519, January.
    2. Toma, Mark, 1982. "Inflationary bias of the Federal Reserve System : A bureaucratic perspective," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 163-190.
    3. Alex Cukierman, 1992. "Central Bank Strategy, Credibility, and Independence: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031981, July.
    4. Weingast, Barry R & Moran, Mark J, 1983. "Bureaucratic Discretion or Congressional Control? Regulatory Policymaking by the Federal Trade Commission," Journal of Political Economy, University of Chicago Press, vol. 91(5), pages 765-800, October.
    5. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1127-1161.
    6. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    7. repec:dau:papers:123456789/12319 is not listed on IDEAS
    8. Barry Weingast, 1984. "The congressional-bureaucratic system: a principal agent perspective (with applications to the SEC)," Public Choice, Springer, vol. 44(1), pages 147-191, January.
    9. repec:hrv:faseco:30727607 is not listed on IDEAS
    10. William D. Nordhaus, 1975. "The Political Business Cycle," Review of Economic Studies, Oxford University Press, vol. 42(2), pages 169-190.
    11. Walsh, Carl E, 1995. "Optimal Contracts for Central Bankers," American Economic Review, American Economic Association, vol. 85(1), pages 150-167, March.
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