ABSTRACT
Up to this point, the monetary theory and its implications have been developed without reference to international relationships. Yet the the ory has important implication for the adjustment of trade among na tions. It can explain why an international gold standard has proved so unsatisfactory, and throw light on the probable working of other mech anisms for maintaining a balance of payments between nations. These are problems of basic importance, both for the achievement of full employment within countries and for the maintenance of stable eco nomic relationships within the world economy. This book cannot hope to deal extensively with these problems, but it can point to certain more significant conclusions as to international trade adjustments sug gested by the monetary theory.
