Summary of the Discussion
The discussion first concerned the difficulties and pitfalls involved in attempts to measure economic integration by the degree of price equalisation. Factor price equality, suggested as one definition of integration, could be achieved, it was argued, in other ways than through market integration. Attention was also given to the problem of measuring integration when prices are used for other purposes than to clear markets. A second issue concerned the need to consider actual political units and their policy aims when discussing geographic integration. This session was chaired by Jagdish N. Bhagwati.
KeywordsInterest Rate Monetary Policy Economic Integration Factor Price Market Integration
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