International Money

by Paul de Grauwe

Published 1 April 1989
The period since the end of World War II has been an eventful and often disturbing one in the international monetary field. Economic theories have been propounded and modified both to explain events and to influence future choices made by economists. This examination of economic trends outlines the relationship between events and theories. The author considers how theories have been judged and discarded on the basis of their perceived accordance with actuality. He examines exchange rates, deploys his own theory based on the idea of bounded rationality and considers what the future might hold for the international monetary system.