ABSTRACT
In all references to "countries", the authors have had in mind, not indeed completely closed economies, but areas within whose borders all the characteristic features of the business cycle could come into play. In setting out the international complications in orderly fashion, there are two alternative methods of exposition which the authors may adopt. The first method would be to start from the assumption of two or more completely independent and isolated economies, and proceed to introduce one by one the various types of economic connections which people find in the real world. The other method of approach is to start with the hypothesis of a spaceless closed economy embracing the whole world and to introduce one by one the circumstances which divide and disintegrate that economy. The disparate organisation of the world capital market opens up a new series of possible repercussions from changes which involve a transfer of demand from one country to another.
