Floating exchange rates have not lived up to all expectations, but neither have they performed as badly as some critics have suggested. Examined are the impact of floating rates on balance of payments adjustment, domestic economic policy, and inflation and the claim that floating rates have displayed excessive fluctuations. (Author/RM)

Exchange controls in Great Britain were abolished in 1979. Since then, there has been a significant outflow of capital. This article examines the case for the reintroduction of controls with particular reference to the effect this might have on investment. (Author/JDH)

Presents Michal Kalecki's macro-economic model and two-sector version of the model by Robinson and Eatwell as circular flow diagrams. Advantages of using this approach in first-year undergraduate economics programs are discussed. Available from: General Secretary, Economics Association, Room 340, Hamilton House, Mabledon Place, London WC1H 9BH,…

Identifies some of the more essential features of the administered price thesis and discusses ways they might be integrated into mainstream economic theory. Available from: General Secretary, Economics Association, Room 340, Hamilton House, Mabledon Place, London WC1H 9BH, England. (Author/AV)

Explains the use of forwards, futures, swaps, and options in international currency trading. Argues that pricing options are based on the same basic principles as pricing other financial instruments. Concludes that, although financial markets have developed several new products, hedging and speculation involve similar processes. (CFR)

An economic case study is presented of the balance of payments in Italy, Canada, and West Germany during the 1940s through 1960s. The study examines the circular flow of income, price level fluctuations, supply and demand theory, and basic considerations of financial markets. For journal availability, see SO 505 703. (Author/AV)

Argues that the relationship between the British pound sterling, interest rates, and oil prices has been overemphasized by economic commentators because they ignored a basic economic theory about the determination of the exchange rate. Provides an example and suggestions for follow up instruction. (Author/JDH)

Provides an extension of the basic banking model used in introductory economics courses. This expanded model introduces the concept of banking capital and reserves, and includes the relationship existing between current issues and banking structure and money supply growth. Provides worksheet exercises and answers. (LS)