Monetary Policy and the Balance of Payments

  title={Monetary Policy and the Balance of Payments},
  author={Arthur B. Laffer},
RECENT DEVELOPMENTS in the U.S. balance of payments have raised a number of questions about the future of the dollar and of the U.S. economy. Central to many of these issues is the suggestion that a fundamental change has occurred. Does the disappearance of the traditional current account surplus signify a decline in the relative position of the U.S. economy? Is this a qualitative change that alters the rules of the international economic system as we have known them? My tentative conclusion is… CONTINUE READING