Valedictory

Abstract

The essence of the theoretical approach presented in this book is that a short-run approach to the problems of international payments adjustment is necessary because no other framework can allow for the impact of sequences of different types of disturbances to be imposed at irregular intervals. In addition the short-run framework releases nations from the theoretical need to seek payments balance as their international goal and can include national targets other than balance. The implications of the aggregate theory for policy are profound. The innovations require a flexibility in policy-making on the part of national monetary authorities that was not present in the Bretton Woods system.