In the author's own words the term comprises four distinct problems: (1) The relation between the value of money in one country and the value of money in another country (2) the relation of the price level of one country to the price level. in other countries (3). the price relations of woods in identical technological composition among trading countries (i) the comparison of prices of factors production in different countries AAlt'these problems are discussed and analysed in the book under review.
The Four Periods When" considering the history of the theory' of International "price relationship in connection with. the nature of practical problems, one may distribute the subject matter amongst our periods: (1). the. mercantilistic period (2) the classical period the post-classical period, and (4) the post-war period. "'The. mereantilistle period comprises the years from about 1500 to'1780. IL was characterized by the attention which was paid by the people 0 the question of the national stock of monetary metals. There was universal recognition of the fact that there are definite relations between the rates of exchange, the balance of foreign trade and international specie movements; it must be added that opinions In regard to the nature of the relations differed from each other. About the middle of the eighteenth Century the revolt against mercantile fxm was so strony that this system Nad for aive way to the free trade The succeeding extended from bout 1750. to 1848, Economists of that period endeavour ed, at least in the earl ice stages, 10 lity of a country ly" {0 Increase its stock of precious metals, and also to show the advantages. of the international division of fabeuw. These economists subscribed 0 the free= trade" school. They created the classical theory of international trade, which not only demonstrated how trading countries were benefited by trade, but also gave a real foundation for the theory of international price relationship.
The "post-classical" period began in 1848, subsequent upon the discovery in that andthe following years rich old deposits in the" United Bu War. The old discoveries States, and ended in 1918 with the
stimulated the dis lem of price adjustment, calling attention to subject of the effects of an increase ing cause of exchange depreciation. The theory hed been advanced. that the slate" of foreign trade, international movements of caplial, and other items inthe foreign balance of payments were the source of exchange depreciation, In the current decade, the theory of "international price relationships has taken a new departure after the publication of works by Professor Obiin. The principal contribution to the theory of international commerce Is the extension of the mutual-interdependence theory of pricing to the domain of international economics.
Text read from the printed page and cleaned; old type leaves the occasional error.