The Trade Equilibrium Level

Paul Einzig

Chapter Chapter Seven in The Case against Floating Exchanges, 1970, pp 61-69 from Palgrave Macmillan

Abstract: Abstract The idea that an intractable balance of payments deficit could be eliminated with the proverbial stroke of the pen, by simply removing fixed parities and allowing the exchange rate to depreciate to a level at which imports are balanced by exports, could be described as touchingly naïve if its presentation were not so elaborate and oversophisticated. Here we were, struggling hard to export more and import less, submitting to credit squeeze, wage freeze and other unpleasant devices, when all that the Government would have had to do was to follow the advice thrust upon it by a multitude of economists to let sterling find its own level. Our trade would then have balanced and it would not have been necessary to inflict hardships on us.

Keywords: Exchange Rate; Foreign Trade; Trade Balance; Full Employment; National Currency (search for similar items in EconPapers)
Date: 1970
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:palchp:978-1-349-00681-6_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349006816

DOI: 10.1007/978-1-349-00681-6_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().