Reply by Professor Khachaturov to the Comments on his Paper
Professor Khachaturov noted that Professor Domar said that the trade of both socialist countries and the U.S.A. was guided by political considerations. Of course, even the most favoured nation principle is part of economic policy. But when it was applied, foreign trade grew. Professor Bénard and Professor Domar stressed the link between convertible currency and free trade. He thought a convertible currency was of great importance and agreed with Bénard that for socialist countries convertibility between their currencies would be a first step in the right direction, though socialist trade was already based on economic calculations and comparisons of currencies.
KeywordsForeign Trade Economic Reform Socialist Country State Monopoly International Economic Relation
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