4 
CONTENTS 
PAGES 
ments of specie are lacking, 337. Use of certain terms : exchange, 
foreign exchange, paper exchange, specie exchange, paper con- 
ditions, specie conditions, dislocated exchanges, 338. Effects of 
inconvertible currency on international trade unduly simplified 
by followers of Ricardo, 339. Cassel’s formulation of the pur- 
chasing-parity doctrine, 340. Analysis of international trade 
under the simplest conditions between countries having different 
monetary standards, 341. Effect of a sudden and large dis- 
turbing factor on the price of foreign exchange, 343. Price 
of foreign exchange may change independently of changes in the 
price level of either country. The theory of the impact of the 
respective volumes of remittances, 344. Changes in exchange 
rate may for a time act as a bounty on exports, 346. Is there a 
“normal” foreign exchange rate under dislocated exchanges? 
348. Effect of fluctuation in exchange on domestic prices, 
export prices, and import prices, 349. Eventual results under 
dislocated exchanges the same as under specie, 352. Changes in 
the barter terms of trade, 355. Limits of fluctuations in the 
barter terms and in the rates of exchange, 356. Conclusion, 357 
APPENDIX 
The analysis made in the body of the chapter illustrated by 
figures, 358. 
CHAPTER 27 
DisLocATED ExcHANGES FURTHER CONSIDERED - 
Merchandise movements may be cause or effect of variations 
in the price of foreign exchange. Barter terms of trade modified 
by changes in demand, 363. Changes in demand usually gradual, 
and difficult to disentangle. Changes in supply are more often 
distinguishable, but as a rule the effects can be traced only thru 
the first stages, 366. Exchange between a country with a gold 
standard and one with a silver standard, 369. Trade between 
India and Great Britain, 370. Rates of exchange, like mer- 
chandise movements, may be either cause or effect of merchan- 
dise movements, 371. Changes in the gold price of silver, arising 
independently, are a complicating factor, 372. 
363-373 
CHAPTER 28 
SPECULATION, PEGGING, THE GoLD EXCHANGE STANDARD . ; 
Short period movements of dislocated exchanges. Speculative 
dealings of much greater importance than under gold exchanges, 
374. Does speculation diminish fluctuations? relation between 
374-384