That the balance of payments could be adjusted by prices and interest rates,under a fixed exchange rate system,originated with Keynesian theory during the 1930s.

Question

Quizplus · Accepted Answer

The idea that the balance of payments could be adjusted by prices and interest rates under a fixed exchange rate system is associated with the classical gold standard and monetary theories, not specifically with Keynesian theory from the 1930s.

That the Balance of Payments Could Be Adjusted by Prices