TY  - JOUR
AU  - Kravis,Irving B.
AU  - Lipsey,Robert E.
TI  - Price Behavior in the Light of Balance of Payments Theories
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 181
PY  - 1980
Y2  - 1980
UR  - http://www.nber.org/papers/w0181
L1  - http://www.nber.org/papers/w0181.pdf
N1  - Author contact info:
Irving Kravis
Department of Economics
University of Pennsylvania
3718 Locust Walk/CR
Phiadelphia, PA 19104

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased
AB  - The purpose of this paper is to describe the behavior of that subset of prices and price indexes that is relevant to the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this juncture as falling into two main groups -- the "standard" theories and the more recent monetary theories. Each of these is examined to determine the assumptions and predictions made about particular kinds of prices, and the empirical evidence regarding these prices is then set out. Although some assessment of the theories -- solely from the price aspect -- is offered, the emphasis is on the price structure and price behavior that ought to be captured in a satisfactory theory of the mechanisms of international adjustment. For pragmatic reasons, attention is placed mainly on the theory relating to exchange rate changes rather than on the explanation of adjustment with fixed exchange rates.
ER  -