Advertisement

Target Compatibility and International Co-operation

  • H. Peter Gray

Abstract

The aggregate theory of international payments adjustment allows for the possibility that nations will deliberately strive to have nonzero basic balances. The concept of a payments goal that is either positive or negative can derive from the desire of a nation to finance a deficit considered temporary or to avoid adjustment in the face of a surplus that will not last. Another reason for having a non-zero payments target is that national authorities are deliberately using the international sector to help in the achievement of domestic, macroeconomic goals (see Chapter 4, pp. 64–8). The short-run theory requires that nations be prepared to adjust their balance-of-payments policies to meet many different kinds of disturbance — real or monetary and shift, trend or reversing — of varying magnitudes at irregular intervals. National authorities will be always trying to reconcile any differences between forecast and target international balances.

Keywords

Current Account Trading Partner Competitive Ratio Capital Account International Target 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© H. Peter Gray 1974

Authors and Affiliations

  • H. Peter Gray
    • 1
  1. 1.Belle MeadUSA

Personalised recommendations