ABSTRACT
A. Meaning and Causes of “Dollar Shortage”: Monetary Policy or Structural Conditions? ■ B. Balogh Advances Hypotheses Involving Productivity Disparities, But Gives No Explanation ■ C. Haberler Provides an Explanation, Which Balogh Disregards ■ D. Williams Presents the Balogh Hypotheses, Still Without Explanation ■ E. Hicks Offers Theory, Stressing Import Substitution in Progressing Country ■ F. Hicks Applies This Theory to Account for British Experience ■ G. The Theory Implies Net Decline in Real Income, Not Merely Slower Increase ■ H. The Theory Is Really Independent of Differential Growth Rates ■ I. Need for Frequent Costly Adjustments to Disparate Growth May Suggest Policy of Trade Restrictions, But Does Not Explain Dollar Shortage ■ J. Continuing Shortage While Real Income Continually Increases Cannot Be Explained by Structural Difficulties
