Price Behavior in the Light of Balance of Payments Theories

Irving B. Kravis and Robert Lipsey

No 181, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The purpose of this paper is to describe the behavior of that subset of prices and price indexes that is relevant to the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this juncture as falling into two main groups -- the "standard" theories and the more recent monetary theories. Each of these is examined to determine the assumptions and predictions made about particular kinds of prices, and the empirical evidence regarding these prices is then set out. Although some assessment of the theories -- solely from the price aspect -- is offered, the emphasis is on the price structure and price behavior that ought to be captured in a satisfactory theory of the mechanisms of international adjustment. For pragmatic reasons, attention is placed mainly on the theory relating to exchange rate changes rather than on the explanation of adjustment with fixed exchange rates.

Date: 1977-06
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published as Kravis, Irving B. and Lipsey, Robert E. "Price Behavior in the Light of Balance of Payment Theories." Journal of International Economics, Vol. 8, No. 2, (May 1978), pp. 193-246.

Downloads: (external link)
http://www.nber.org/papers/w0181.pdf (application/pdf)

Related works:
Journal Article: Price behavior in the light of balance of payments theories (1978)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:0181

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w0181

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().