Studies in the Theory of International Trade

Cover......Page 1
Half Title......Page 2
Title Page......Page 4
Copyright Page......Page 5
Original Title Page......Page 6
Original Copyright Page......Page 7
Dedication......Page 8
Table of Contents......Page 10
Preface......Page 16
I. Introduction......Page 22
II. "Mercantilism" and "Bullionism"......Page 24
The Concept and Its Application......Page 27
General and Partial Balances......Page 31
Constituent Items in the Balance......Page 34
The Mercantilist Conception of Wealth......Page 36
State Treasure as an Emergency Reserve......Page 43
The Precious Metals as a Store of Wealth......Page 47
Money as Invested Capital......Page 52
The Analogy from Personal Finance......Page 53
More Money in Order to Have Higher Prices......Page 54
More Money in Circulation Means More Trade......Page 57
The Quantity Theory of Money......Page 61
The Mercantilists on Hoards and Plate......Page 66
V. Employment and the Balance of Trade......Page 72
Introductory......Page 79
Bullionist Proposals......Page 81
Prohibitions vs. Duties......Page 83
Discriminatory Treatment of Domestic Industries......Page 87
The Reexport Trade......Page 89
Export Bounties......Page 90
Infant Industry Protection......Page 92
Mercantilism and Protectionism......Page 94
The Self-regulating Mechanism of Specie Distribution......Page 95
Scarcity of Money......Page 108
Thrift......Page 111
Laissez-Faire and Free Trade......Page 112
International Division of Labor......Page 124
III. Some Modern Interpretations of English Mercantilism......Page 131
I. The Participants in the Controversy......Page 140
II. The Factual Background......Page 143
III. Premium on Bullion as Evidence of Excess Issue: The Bullionist Position......Page 145
IV. Qualifications Conceded by the Bullionists......Page 148
V. Possible Objections to the Bullionist Position......Page 151
VI. The Anti-bullionist Position......Page 157
VII. The Balance of Payments Argument......Page 159
VIII. The Possibility of Excess Issue by Banks......Page 169
IX. Responsibility for the Excess Issue: Bank of England vs. Country Banks......Page 175
X. Responsibility for Excess Issue: The Credit Policy of the Bank of England......Page 186
I. The Resumption of Cash Payments......Page 192
II. Responsibility of Resumption for the Fall in Prices......Page 195
III. The Economic Effect of Changing Price Levels......Page 206
IV. Ricardo's Position on the Gold Standard......Page 221
V. Reform without Departure from the Metallic Standard......Page 224
VI. Paper Standard Currencies......Page 230
I. Introduction......Page 239
II. The "Currency School"-"Banking School" Controversy......Page 241
III. The "Palmer Rule"......Page 245
IV. The Bank Act of 1844......Page 250
V. The Possibility of Overissue of Convertible Bank Notes......Page 255
VI. The Role of Deposits, Bills of Exchange, and "Credit" in the Currency System......Page 264
The Record of the Bank of England......Page 275
Variations in Discount Rate vs. Rationing......Page 277
Open-Market Operations......Page 278
Internal and External Gold Drains......Page 282
Adequate Reserves......Page 285
Foreign Securities as a Secondary Reserve......Page 291
Silver as a Reserve Metal......Page 293
Cooperation Between Central Banks......Page 294
VIII. The Relation Between Bank of England Operations and Specie Movements......Page 297
IX. Currency Reform Proposals......Page 301
I. Introductory......Page 311
II. The Mechanism According to Hume......Page 313
III. An Omitted Factor? Relative Changes in Demand as an Equilibrating Force......Page 314
Wheatley, Ricardo......Page 316
Longfield, Torrens, Joplin......Page 318
J. S. Mill, Cairnes......Page 321
Bastable, Nicholson......Page 323
Taussig, Wicksell......Page 325
"Canada's Balance"......Page 326
Keynes, Ohlin......Page 328
IV. Prices in the Mechanism: The Concept of "Price Levels"......Page 332
V. The "Terms-of-Trade" Concept......Page 340
Irish Absenteeism......Page 341
Tariff Changes......Page 343
VI. The Prices of "Domestic" Commodities......Page 344
VII. The Mechanism of Transfer of Unilateral Payments in Some Recent Literature......Page 347
Wilson......Page 348
Yntema......Page 353
Ohlin......Page 354
Pigou......Page 357
VIII. A Graphical Examination of Pigou's Analysis......Page 359
IX. Some Elaboratlons on the Basis of Pigou's Analysis......Page 365
X. An Alternative Solution......Page 374
XI. Types of Disturbance in International Equilibrium......Page 381
XII. Specie Movements and Velocity of Money......Page 386
XIII. Commodity Flows and Relative Price Levels......Page 395
XIV. Exchange Rates......Page 398
XV. A Criticism of the Purchasing-power-parity Theory......Page 400
I. Automatic vs. Managed Currencies......Page 409
II. Primary and Secondary Expansion of Means of Payments......Page 415
III. Short-Term Loans in the International Mechanism......Page 424
"Canada's Balance"......Page 434
Angell's Criticism of the Account in "Canada's Balance"......Page 435
Angell's Statistical Analysis......Page 442
A Statistical Reexamination of the Canadian Experience......Page 447
V. The International Mechanism and Business Cycles......Page 453
I. The Nature and Origin of the Doctrine......Page 458
An Alleged Error in Ricardo......Page 465
Relation of Comparative Costs to the Terms of Trade......Page 467
Trade at One of the Limiting Ratios......Page 469
The Possibility of Partial Specialization......Page 470
III. Trade in More than Two Commodities......Page 474
IV. Trade between More than Two Countries......Page 483
V. Transportation Costs......Page 488
VI. Increasing and Decreasing Costs......Page 491
VII. Prices, Money Costs, and Real Costs......Page 504
VIII. Dependence of Comparative Cost Doctrine on a Real Cost Theory of Value......Page 510
IX. Differences in Wage Rates in Different Occupations......Page 514
X. Variable Proportions of the Factors and International Specialization......Page 521
XI. Variable Proportions of the Factors and Comparative Real Costs......Page 529
XII. "Opportunity Cost" Analysis as a Substitute for Real Cost Analysis......Page 537
I. "Mass of Commodities" and "Sum of Enjoyments": Ricardo and Malthus......Page 548
John Sruart Mill......Page 556
Marshall......Page 562
Edgeworth......Page 567
Graham......Page 569
Terms of Trade as an Index of Gain from Trade......Page 576
Different Concepts of Terms of Trade......Page 579
Terms of Trade and the International Division of Gain from Trade......Page 585
Statistical Measurement of the Trend of Terms of Trade......Page 586
IV. "Net Benefit" in International Trade: Marshall......Page 591
V. Total Net Utility Derived from International Trade: Edgeworth......Page 597
Marshall's Curves and Monetary Curves......Page 603
Cournot's Theory......Page 607
Barone's Graphical Technique......Page 610
Auspitz and Lieben......Page 613
Appendix: A Note on the Scope and Method of the Theory of International Trade......Page 615
Bibliography......Page 623
Index of Names......Page 654
Index of Subjects......Page 664