Exchange-Rate Policy, International Capital Movements and the Financing of Development

Abstract

The topic assigned to me is potentially vast. Of the many ways of cutting it down, I have thought it most interesting to choose an impressionistic one: namely, to address a few points which seemed particularly interesting from a policy point of view. There is some empirical evidence (particularly relating to ‘developing countries’), but much of the discussion is merely taxonomic. There are, consequently, no firm conclusions. It does not appear, however, that either the exchange-rate system or the exchange rate is a particularly apt instrument for stimulating capital flows and financing development.