Balance Of Payments

Balance of Payments Theory & Economic Policy by Robert M. Stern provides a comprehensive analysis of the major postwar developments in balance-of-payments adjustment and economic policy. The author examines the present-day system of pegged-but-adjustable exchange rates and the challenges faced by policymakers in achieving full employment, price stability, and a satisfactory rate of economic growth. The book assesses the economic consequences of different exchange-rate systems and policies, with a focus on the international monetary turmoil of the past decade. Stern argues that the adjustable-peg system's inflexibilities and excessive reserve creation under the dollar standard have contributed to global instability. He proposes redesigning the international monetary system to permit greater exchange-rate flexibility and control over new international reserve assets. Written by Professor Robert M. Stern, a renowned expert in economics and public policy, this book offers valuable insights into the complexities of balance-of-payments adjustment and economic policy. With its systematic approach and analysis of alternative exchange-rate systems, it provides a nuanced understanding of the challenges facing policymakers today.