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Now there are two ways in which the authorities of a particular country may combine the use of financial policy and of price adjustment. First, financial policy may be used for the preservation of internal balance and price adjustment for the preservation of external balance. Second, financial policy may be used for the preservation of external balance and price adjustment for the preservation of internal balance. On either of these principles the authorities of any one country can set about the simultaneous preservation of internal and external balance. (en) |
