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ABSTRACTThis paper is concerned with the opportunities for arbitrage which have arisen in the UK when large companies are able to borrow from a commercial bank and on‐lend the money in the market at a higher rate. Such arbitrage is commonly called 'Round‐Tripping'. Round‐Tripping is investigated in a simple theoretical way, and then a simulation approach is used to estimate the amount of funds involved in Round‐Tripping in the 1970s. These estimates tend to support the view that Round‐Tripping was probably rather modest in amount in relation to the values of the main monetary aggregates.

Three possible explanations for the emergence of the Canadian central bank in 1935 are examined: that it reflected the need of competitive banking systems for a lender of last resort, that it was necessary to anchor the unregulated Canadian monetary system after abandonment of the gold standard in 1929, and that it was a response to political rather than purely economic pressures. Evidence from a variety of sources (contemporary statements to a Royal Commission, correspondence of chartered bankers, newspaper reports, academic writings, and estimation of time series econometric models) rejects the first two hypotheses and supports the third.

It is argued that despite good harvests in 1985 and 1986, which have yielded a large exportable grain surplus, the economic outlook for Sudan remains bleak. The principal factors which account for this are the enormous foreign debt of $ 10 bn and the vast military expenditure on the war in the south. The overall financial situation and the problem of debt servicing are exacerbated by the fact, that the government's agricultural and export policies are at odds with the advice given by the International Monetary Fund and the United States' Agency for International Development. (DÜI-Asd)

In mid-1985, the US Embassy in Caracas stated that "Venezuela appears to have successfully coped with its financial crisis" (US Embassy, 1985). In January 1986, the Wall Street Journal announced thatVenezuela will become the first country in Latin America to sign a debt-refinancing agreement without mediation by the International Monetary Fund (IMF). Its success stands in stark contrast to the situation in another oil-rich nation, Mexico, where the ruling political party has seemed more interested in using the oil wealth to perpetuate the party's power than to secure the country's independence from the IMF (WSJ, 1986).

The changes of the banking and credit system have been a trend in the reorganisation of the economic mechanism underway since the late 1970s in the PRC. The author looks at the present-day organisation of the country's banking and credit system in connection with the changes of the last few years. Organisational independence regained by the People's Bank of China (PBOC) in the late 1970s. Its leading position in the country's banking system, acting above all as the PRC's monetary, credit, accounting and cash centre. Reorganisation of the PBOC in September 1983. (DÜI-Sen)

An analysis of the relationship between postindustrial development & international trade, & the role of public authority in modern society. Data for 77 countries selected from the International Monetary Fund's "Directions of Trade & International Financial Statistics" for 1948-1977 were analyzed for 10 variables. Findings suggest that as a country assumes the characteristics of postindustrialization, a need arises for government activity due in part to the relationship between technological innovation, international competition, & national security. Such government intervention is closely connected to the changing economic structures, including international trade. 5 Tables, 1 Figure, 1 Appendix, 41 References. F. Rasmussen

"Borrowers should pay their debts." Most Americans would agree with this maxim and would probably apply it to debtor countries as well. There is little sympathy in evidence for the debtors, and even less for the money-center banks whose capital is badly at risk in Latin America. The discussions of such esoterica as International Monetary Fund loans, special drawing rights, and debt refinancing bring yawns. Undoubtedly, the Reagan administration's view that debt is a private matter, to be resolved between debtor countries and their creditor banks, enjoys wide public support.

Previous studies of the political business cycle have examined time series data to determine whether a pattern of pre-election boom and post-election slump exists. The studies do not investigate the behavior and mechanisms by which a politician may effectuate a political business cycle. We focus on one time period, 1969 to 1972, and conclude that President Nixon's personality and operating environment explain why he manipulated the economy for political gain. The mechanisms he utilized to improve macroeconomic conditions before the 1972 election include monetary policy, fiscal policy, and wage-price controls.

Some neglected turn-of-the century American economists, who influenced or participated in the formation of U.S. foreign policy, argued that modern capitalism tended toward recurrent crises as a result of oversaving and surplus capital. These economists held that the construction of an international investment system offered a partial solution to the surplus-capital problem. Focusing on China, U.S. foreign policy at the outset of the twentieth century sought to install the gold-exchange standard in monetary relations between industrial and nonindustrial countries as a condition of such an international investment system.

IN THIS PAPER THE AUTHORS WILL SHOW THAT, EXCEPT IN A BORDERLINE CASE, MUNDELL'S MODEL HAS TWO STEADY STATES (INSTEAD OF ONE, AS WAS TAKEN FOR GRANTED) AND THAT THE NUMERICAL EXAMPLES FOCUSED ON THE ONE THAT EXHIBNITS THE LOWEST LEVEL OF REAL MONETARY BALANCES AND GROWTH. IF INSTEAD THE ANALYSIS WERE TO BE BASED ON THE SECOND STEADY STATE, A DRAMATICALLY DIFFERENT RESULT IS FOUND: THERE EXISTS NO UPPER BOUND TO THE STEADY-STATE SEIGNIORAGE-FINANCED RATE OF GROWTH. AND THE LATTER INCREASES WITHOUT BOUND AS THE RATE OF EXPANSION OF THE MONEY SUPPLY. APPROACHES ZERO.

Of the four current schemes for international economic integration in West Africa, the operation of the Communauté économique de l'Afrique de l'Ouest has been recently reviewed, the Economic Community of West African States continues to be widely discussed, while the agreement of the Presidents of Senegal and Gambia in Dakar on 17 December 1981 to establish a Senegambian Confederation, and to develop an economic and monetary union between the two countries, is as yet in its formative stages. This article examines the structure, progress, and potential of the Mano River Union (M.R.U.) about which little has been published.

The Natural Gas Policy Act (NGPA) will decontrol gas prices in 1985, and there is concern about its inflation and output effects. In this investigation of these concerns, two misapprehensions are remedied. First, inflation is primarily a monetary phenomenon so that a rise in energy prices affects the price level, but any impact on inflation is temporary. Second, while analyses of NGPA have assumed that the price of gas will achieve parity with petroleum, they have neglected decontrol's effect on OPEC's optimal price, Our estimates of the decontrol effect demonstrate that energy prices will fall, not rise

The paper will show how the Marxian concept of class can be applied to the processes of slavery in the American antebellum South. The use of the notion of classes, and particularly the reconceptualized concepts of fundamental and subsumed class processes, provides an alternative to the received non-Marxian categories of plantation capitalism and planter hegemony. These concepts are developed and applied to Southern class conflicts over both state banking and national monetary policy. Competition among various classes is shown to have had significant influences on the nature of these conflicts.

High real interest rates and high rates of unemployment were the main characteristics of the world economy in 1981, with relatively low growth rates as the link between them. Rates of inflation moderated.Since the huge increases in oil prices during 1979 gave a fresh and powerful upward twist to the inflationary spiral, the chief priority of governments in most OECD countries has been to get this turning down again. To this end they have followed strict monetary policies and fiscal policies which despite big budgetary deficits in some countries would be restrictive on a full-employment basis.

Book Reviews in this Article Rational Techniques in Policy Analysis. The Political Economy of Co‐operation and Participation : A Third Sector. Mergers and Economic Performance. Monetary Policy in Australia. Money, Finance and Development. Concentration in British Industry 1935‐75. Computers and Social Change. Inflation, Income Distribution and X‐Efficiency Theory. Conference in Applied Economic Research. The Foundations of Nigeria's Financial Infrastructure. Dynamic Regression: Theory and Algorithms. Public Expenditures and Social Policy in Australia. Volume II: The First Fraser Years 1976–78. Asset Accumulation and Economic Activity: Reflections on Contemporary Macroeconomic Theory. Classical and Neoclassical Theories of General Equilibrium.