Knowledge that Transforms

Richard S. Thorn, A Proposal to Remove Some Disequilibrating Movements in Official Holdings of Foreign Exchange: A Rejoinder, The Review of Economics and Statistics, Vol. 47, No. 3 (Aug., 1965), pp. 331-334

The purpose of a foreign exchange guarantee is not to discourage countries which should devalue from devaluing but to allow monetary authorities to cooperate freely and fully in reducing international monetary instability and to prevent devaluations from taking place which would not take place if adequate cooperative arrangements were available. In this context, it is revealing that the overwhelming majority of agreements concerning international monetary cooperation in the postwar world have contained exchange guarantees.15 Until some radical reforms, are introduced into the international monetary system, the stability of the system will, in large measure, depend on cooperation between the monetary authorities of the leading financial countries. One of the obstacles that has been encountered in this cooperation is the unwillingness of the various monetary authorities to accumulate large amounts of foreign exchange without some sort of exchange guarantee. I do not say the absence of an exchange guarantee is the only obstacle, but it has been, and is, one of the serious obstacles. An exchange guarantee is not a panacea for the world's monetary ills, however, it can make a valuable contribution toward international monetary stability.16

Murray Brown, Joel Popkin, "Reply" to R. G. Gregory, "A Measure of Technological Change and Returns to Scale: A Comment", The Review of Economics and Statistics, Vol. 47, No. 4 (Nov., 1965), pp. 454-457

sion equation presented in the note, in which x appears as an independent variable. Therefore, the high correlation between migration and prospective unemployment may be misleading. It may be, in effect, merely a correlation of the dependent variable with itself. On the basis of the foregoing, it would appear that the problem of establishing a strong link between migration and job opportunities may not really have been solved by introducing the new concept of unemployment. Nevertheless, Dr. Blanco's ingenious approach to the problem will be of considerable interest to anyone concerned with the determinants of population movements.