An Alternative Theory of Long-Run Exchange Rate Determination. An Empirical Application

I am not suggesting that one system is better than another and all should adopt it. On the contrary, a variety of political systems and ideologies is desirable and accords with the variety of dispositions within the human community. This variety enhances the ceaseless human quest for happiness. Thus each community should be free to evolve its own political and socioeconomic system, based on the principle of self-determination . The achievement of justice, harmony, and peace depends on many factors. We should think about them in terms of human benefit in the long run rather than the short term. I realize the enormity of the task before us, but I see no other alternative than the one I am proposing – which is based on our common humanity. Nations have no choice but to be concerned about the welfare of others, not so much because of their belief in humanity, but because it is in the mutual and long-term interest of all concerned. An appreciation of this new reality is indicated by the emergence of regional or continental economic organizations such as the European Economic Community, the Association of South East Asian Nations, and so forth ...»