The Monetary Background

H. Peter Gray

Chapter 11 in An Aggregate Theory of International Payments Adjustment, 1974, pp 195-207 from Palgrave Macmillan

Abstract: Abstract The aggregate theory excluded from its compass autonomous international flows of convertible currencies whether they be held in interest-bearing short-term assets or in liquid funds. Questions of domestic monetary phenomena are subsumed in the macroeconomic aggregates that they generate and are incorporated into the question of international payments adjustment through these macroeconomic effects. The purpose of segregating international monetary elements from the so-called real elements of international payments was to permit separate analysis of the functioning of the real sector. The basic hypothesis is that, if the real sector can be kept in approximate balance through intelligent balance-of-payments policies, the real sector would not be a source of disturbances that would cause disruption in the monetary sector. These derivative monetary disturbances would be likely, in turn, to aggravate the malfunctioning in the real sector. It is, of course, equally important that the monetary system be sufficiently flexible that it does not generate within itself disturbances that it can transmit to the real sector. The purpose of this chapter is to consider what international monetary arrangements would be necessary for the sector to function smoothly in the absence of real disturbances.

Keywords: Foreign Exchange; Commercial Bank; Foreign Currency; Deposit Insurance; Foreign Exchange Market (search for similar items in EconPapers)
Date: 1974
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:978-1-349-01768-3_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349017683

DOI: 10.1007/978-1-349-01768-3_11

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 ().