ABSTRACT
Thus the ultimate structural effect of a structural change in the foreignexchange rate, if the other rules of the game are observed, will be to raise the investment ratio by raising both domestic and foreign investment and reducing consumption expenditures. In the final equilibrium so reached, full employment will be maintained; inflation will be controlled; the total resources applied to capital accumulation rather than to consumption will be at the desired level; and the distribution of investment between domestic and foreign investment will be decided by the yields on each form of investment.
