ABSTRACT
The factor ƒ which we have used to describe the elements “foreign” to any one economy under consideration consists of various components: the volume of exports (x); export prices (p x ) and import prices (p m ); and, for some countries, foreign loans. For reasons discussed below, 1 fluctuations in the terms of trade https://www.w3.org/1998/Math/MathML"> p x p m https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315016733/638486d9-2649-4b3d-946a-6258388baa5d/content/inline-math_28_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> are of secondary importance for the system as a whole; and we consider the volume of foreign loans as determined, to a considerable extent, by extra-economic factors. The main factor, therefore, to be explained here is the volume of exports.
