International trade in a system of floating exchange rates

Since the introduction of the system of floating exchange rates policy-makers have been troubled by uncertainties regarding the effects of this system on international trade. Do exchange rate changes affect trade flows? Can governments manipulate exchange rates? Have countries been “injured” by exchange rate changes? What are the real costs of international monetary instability? Answers to these key questions are given in the following article

Association between ethnicity and obesity with high-density lipoprotein (HDL) function and subclass distribution

Abstract Background Obesity and low high-density lipoprotein-cholesterol (HDL-C) levels are associated with cardiovascular risk. Surprisingly, despite a greater prevalence of obesity and lower HDL concentrations than white women, black South African women are relatively protected against ischaemic heart disease. Methods We investigated whether this apparent discrepancy may be related to different HDL function and subclass distribution in black and white, normal-weight and obese South African women (n = 40). HDL functionality was assessed by measuring paraoxonase (PON) activity, platelet activating factor acetylhydrolase (PAF-AH) activity, Oxygen Radical Absorbance Capacity (ORAC) and quantification of the expression of vascular cell adhesion molecule in endothelial cells. PON-1 and PAF-AH expression was determined in isolated HDL and serum using Western blotting. Levels of large, intermediate and small HDL subclasses were measured using the Lipoprint® system. Results PON activity was lower in white compared to black women (0.49 ± 0.09 U/L vs 0.78 ± 0.10 U/L, p < 0.05), regardless of PON-1 protein levels. Obese black women had lower PAF-AH activity (9.34 ± 1.15 U/L vs 13.89 ± 1.21 U/L, p <0.05) and HDL-associated PAF-AH expression compared to obese white women. Compared to normal-weight women, obese women had lower large HDL, greater intermediate and small HDL; an effect that was more pronounced in white women than black women. There were no differences in antioxidant capacity or anti-inflammatory function across groups. Conclusions Our data show that both obesity and ethnicity are associated with differences in HDL functionality, while obesity was associated with decreases in large HDL subclass distribution. Measuring HDL functionality and subclass may, therefore, be important factors to consider when assessing cardiovascular risk

Editor's Introduction to the inaugural issue

For much of the post-war period, interest in the multilateral trading system as embodied in the General Agreement on Tariffs and Trade (GATT) was limited to national delegates posted to Geneva, a small number of technocrats in capitals, and a handful of academics, mostly legal scholars plus a few economists and an even smaller number of political scientists. Among politicians and the general public, the GATT was virtually unknown. During those years, a professional journal devoted exclusively to the multilateral trading system would have been hard pressed to fill its pages.

Alternative Motivations for Including Trade Provisions in Multilateral Environmental Agreements

Arguments in support of the view that trade provisions are an essential part of certain multilateral environmental agreements (MEAs) can be categorized as follows: (1) such provisions are necessary on grounds of economic efficiency (optimal intervention or lowest overall cost), or (2) they are necessary to increase the number of countries which comply with the provisions of the MEA (promote compliance or contain leakage). Much of the literature on the use of trade provisions is concerned with the "insufficient compliance" argument. Although popular, trade measures are not the only sticks available to promote compliance. The United Nations Charter lists a number of non-trade actions available to the international community, and other possible non-trade actions come easily to mind. Part of the answer why existing MEAs rely so heavily on trade measures for sticks may be that use of other measures is viewed as too aggressive. In some situations, there may also be a perception (or misperception) that there is an economic efficiency argument for using trade provisions. A more worrisome explanation is that well organized protectionist interests have promoted mercantilist cost calculations that under-estimate the costs of trade restrictions and over-estimate the costs of non-trade measures. It should be noted, however, that none of the treaties or instruments negotiated since the 1992 UNCED contain trade provisions, and that carrots - mostly offers of financial assistance and environmental technology - are gaining favour. Using MFN reductions in trade barriers as a carrot would be a way of linking trade and environment that could promise unambiguous gains in both areas, in contrast to relying on trade restrictions, in which case the losses from increased restrictions on imports must be weighed against any environmental gains.