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The Monetary Approach to the Balance of Payments and Exchange Rate: Empirical Evidence Relating Specifically to India
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An Outline of the Monetary Approach
The theory of balance of payments, which is basically concerned with the analysis of pOlicies for maintaining balance-of-payments equilibrium, is one of the most controversial subjects in what is today known as International Macroeconomics. The rediscovery of the monetary approach to the balance of payments by Mundell (1968) and Johnson (1972) has led to a series of fresh discussions on this subject. This is evident from the growing number of research papers in academic journals of international stature.
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