This volume consists of selected previously published key essays which have proved most useful for teaching advanced monetary economics. A short introduction was added which places the selection of essays and the issues they cover in the contemporaneous context of simultaneous high inflation and high unemployment. As relevant today as they were when they were first written, they enable the reader to anticipate intelligently what is likely to happen and why.


An internationally acknowledged authority on all aspects of the theory of international trade and payments, this book collects Harry Johnson’s contributions to the study of international trade, including a critique of the theory of effective protection. The book discusses:

  • the integration of income distribution and other aspects of the economy into the positive theory of tariffs
  • the issues raised by the use of tariffs to promote economic development
  • the implications of distortions of various kinds in the working of competition for tariff theory and policy
  • the costs of protection
  • the implications of effective protection for world economic development and the economic effects of trade preferences
  • the question of free trade and the extent to which it requires the harmonization other aspects of economic policy.