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

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  • William A Allen

Abstract

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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