Of Gold and Paper Money

We consider the role of money as a means of payment, store of value and medium of exchange. I outline a number of quantitative and qualitative experiences of monetary management. Successful regimes have sprung up in a variety of surprising places, and been sustained with state (centralised) interventions. Although the link between state and money, and its standard of identity and account may be clear, particularly in earlier stages of economic development, the extent to which the state is widely felt to hold responsibility for 'sound money' is less clear in modern democracies, where there are many other public responsibilities implying ongoing trade-offs

International Trade and Investment Sanctions

The purpose of this paper is to clarify the theory of international economic sanctions and to provide estimates of the short-run economic impact on South Africa of externally imposed reductions of the imports and capital flows into that country. A macroeconomic picture of South Africa's "dependence" is drawn, and the economy's vulnerability in the short run is seen to be in its capacity to import, not in exports or capital flows. Trade and capital sanctions most clearly damage South Afnca's growth potential; the short-run impact is harder to quantify. A static linear programming model of the South African economy is constructed in an attempt at this quantification. This model estimates that small sanctions would have small impact—i.e., if imports were reduced by less than one-fourth, GDP would be cut by only about one half as large a percentage as imports. Larger import reductions cause greater damage. If imports were to be cut in half, not only would GDP be seriously reduced but massive unemployment and relocation of white labor would occur.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/68182/2/10.1177_002200277902300401.pd

Schools out : Adam Smith and pre-disciplinary international political economy

In this article, I argue that invocations of Adam Smith in international political economy (IPE) often reveal the influence therein of a disciplinary ontological disaggregation of economic and non-economic rationality, which I claim is obscured by the tendency to map its complex intellectual contours in terms of competing schools. I trace the origins of the disciplinary characterisation of Smith as the founder of IPE's liberal tradition to invocations of his thought by centrally important figures in the perceived Austrian, Chicago and German historical schools of economics, and reflect upon the significance to IPE of the reiteration of this portrayal by apparent members of its so-called American and British schools. I additionally contrast these interpretations to those put forward by scholars who seek to interpret IPE and Smith's contribution to it in pre-disciplinary terms, which I claim reflects a distinct ontology to that attributed to the British school of IPE with which their work is often associated. I therefore contend that reflection upon invocations of Smith's thought in IPE problematises the longstanding tendency to map its intellectual terrain in terms of competing schools, reveals that the disciplinary ontological consensus that informs this tendency impacts upon articulations of its core concerns and suggests that a pre-disciplinary approach offers an alternative lens through which such concerns might be more effectively framed

L'asymétrie de la balance des paiements et le problème du dollar

[eng] Are the essential factors which account for the disequilibrium between the dollar area and the rest of the world to be found in the economy of the country which shows surplus or in those which show deficit Contra dictory answers demonstrate that those who advocate deflationary measures in deficit countries as remedy for external disequilibrium assume that balance of payment reactions are symetrical whereas those who believe in long term dollar shortage attribute the cause to one or several fundamental asymetrie reactions The symetrie thesis is supported by logic but detailed analysis will show numerous asymetrie possibilities Several are worth looking into after close examination it will be seen that if the explanation of disequi librum through asymetrie behaviour is valid its causes are to be attributed to phenomena which are more fundamental than forces which regulate the balance of payments such as income fluctuations income elasticities the geographical distribution of innovations The real causes of asymetry must be sought in the structural differences between one economy and another rather than in the absence of parallelism between balance of payments reactions to change in prices