Exchange rates and balance-of-payments adjustment - General principles and some recent examples

In the context of the widespread adoption of flexible exchange rates, the purposes of this paper are, first, to go over the well-tilled ground of the principles of balance-of-payments adjustment, trying to interpret these principles in ways relevant to current conditions, and second to discuss some recent cases in which balance-of-payments adjustment policies have been used. The paper offers a number of conclusions about the role of exchange rates in balance-of-payments adjustment.