Knowledge that Transforms

In recent years increasing use has been made of systems of social accounts, and a variety of new types and new forms of presentation have been suggested. The general features of such systems are: (a) the division of an economy into a number of groups or economic entities, mostly themselves a complex of elementary units, and (b) a summing up in the form of accounts of the transactions of various kinds between these economic entities. As a rule, the economy of one country is investigated, implying that all other countries are regarded as one single group. The economy considered may be split up into a number of separate groups. It is customary to distinguish between consumers' households, business enterprises, and the government sector. If special attention is to be given to banking problems for example, banks will constitute a separate group.

J. Tinbergen, Tjalling C. Koopmans, Jacob Marschak, Francois Divisia, Jacques Rueff, B. Chait, La loi de divergence: Discussion, Econometrica, Vol. 17, Supplement: Report of the Washington Meeting (Jul., 1949), pp. 124-128

Francois Perroux, J. Tinbergen, Jacques Rueff, Evsey D. Domar, E. F. Lundberg, M. Kalecki, J. Zagorski, K. Dalal, The Practice of Economic Planning and The Optimum Allocation of Resources: Discussion, Econometrica, Vol. 17, Supplement: Report of the Washington Meeting (Jul., 1949), pp. 172-178

At the prevailing exchange rates and price levels it appears that, considering the current items of the balance of payments of the United States, demand for dollars surpasses their supply. Or in other terms: American exports to the rest of the world (taking goods and services together) surpass imports from the other countries. For the moment, one of the chief reasons is the heavy reconstruction demand in many countries, particularly European, together with the low level of productivity in these areas. Many experts expect, however, that the disequilibrium will remain to some extent after the reconstruction period. The possibility of a permanent disequilibrium will hamper, they fear, even the action needed to solve the temporary dificulties. Granting credits for reconstruction to war-hit countries is not attractive unless in the long run an equilibrium will develop. It seems worth while, therefore, to investigate in some more detail the possibilities of restoring the equilibrium in the current items of the American balance of payments.

Milton Gilbert, Colin Clark, J. R. N. Stone, Francois Perroux, D. K. Lieu, Evelpides, Francois Divisia, Tinbergen, Kuznets, Smithies, Shirras, MacGregor, The Measurement of National Wealth: Discussion, Econometrica, Vol. 17, Supplement: Report of the Washington Meeting (Jul., 1949), pp. 255-272

Journal Article Reciprocal Demand and Increasing Returns Get access R. C. O. Matthews R. C. O. Matthews Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 17, Issue 2, 1949, Pages 149–158, https://doi.org/10.2307/2295870 Published: 01 January 1949