Asset Markets, Exchange Rates, and Economic Integration

In This Review

Asset Markets, Exchange Rates, and Economic Integration

By Polly Reynolds Allen and Peter B. Kenen
Cambridge University Press, 1980
585 pp. $55.00
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Behind its forbidding title this impressive book deals with major themes of our times: how national economies are affected by increased interdependence (when changes in one economy generate interactions) and integration (when assets or goods can be substituted for one another). Drawing together major strands of recent economic theory (which they usefully review in some detail), the authors have constructed a sophisticated model with many facets. An understanding of the real world shapes the inquiry, especially concerning the loss of national freedom of action, but the authors are properly cautious about how their results can be translated into policy.