Comment On M. Mussa, “The Exchange Rate, The Balance of Payments and Monetary and Fiscal Policy Under a Regime of Controlled Floating”
“[The] central contention of … [Mussa’s] … paper [is] that the basic theoretical framework of the monetary approach to the balance of payments remains applicable” (see above, page 97) to the world of controlled floating which has existed since 1971. The paper itself is informal and the discussion general but, there is also a more formal appendix. This comment summarizes and evaluates both the paper and the appendix.
KeywordsExchange Rate Price Level Money Supply Real Income Money Market
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