of reserves should grow at approximately the same rate as global wealth. A lower growth rate of reserves would impose undesirable policy constraints, while a higher growth rate would imply an inflationary bias to the world economy. Judging from the data used in this study, rates of increase of national wealth varied approximately 2.5 per cent and 7.5 per cent, with a cluster around the 5 per cent figure. If the behavior of the governmental authorities follows the pattern found in this study, we might assume that they will want to increase their stock of international reserves by approximately 5 per cent annually. Table 2 pre-

the probability of an equal percentage change occurring is far smaller for R. In terms of equally probable changes, income has a greater impact on interest rates than unborrowed reserves. The partial correlation coefficients present less clear evidence as to the relative contributions of R. and Y. The partials are greater for R. than for Y in the equations for 1953-1960, but greater for Y than for R,2 in the 1961-1965 period. For the overall period, the partials are greater for RX when the equations are specified in the H-S form for 19531960 and for Y when the equations are specified in the H-S form for 1961-1965. Thus, the partial correlation coefficients also provide little evidence in support of H-S's conclusion that RX has a greater impact on interest rates than Y. , i the 1961-1965 period. For the over-

Joseph L. Balintfy, John Neter, William Wasserman, Binary and Chain Comparisons with an Experimental Linear Programming Food Price Index, The Review of Economics and Statistics, Vol. 52, No. 3 (Aug., 1970), pp. 324-330