"We shall talk as if the objective of internal balance were simply that of maintaining a level of total demand for all the country’s products sufficiently high to maintain full employment, but not so high as to lead to a continuing inflation of money prices and costs."

“On principle i relative prices will be lowered in the interests of external balance and domestic expenditure will be inflated in the interests of internal balance. Internal balance will be very quickly restored although there is no net change in external balance. Relative prices must, therefore, continue to be lowered, which will tend now to produce a boom at home. The inflationary financial policy must, therefore, be replaced by a deflationary policy. In the end relative prices will be substantially lowered, while there may be a small net inflation or deflation of domestic expenditure by financial policy.”

“By a ‘spontaneous disturbance’ we shall mean any change in the underlying conditions, the cause of which we are prepared to take for granted and do not wish to examine, but the effect of which on the domestic and external position of our two countries we wish to examine. By a ‘policy’ change we shall mean a change which the State or some public authority brings about as a result of a definite decision of State policy in order to achieve some given end of general economic policy and in particular to offset some of the effects of a ‘spontaneous disturbance’. Finally, by an ‘induced’ change is meant a change in some quantity which occurs on purely commercial principles because of the repercussions of some previous ‘spontaneous’ or ‘policy’ change.”

“Any one country can be in any of four possible disequilibrium situations. It can be a surplus country with a domestic slump, a surplus country with a domestic boom, a deficit country with a domestic slump, or a deficit country with a domestic boom.”

“By such means, the monetary authorities can attempt to make the market for foreign exchange approximate toward what it would have been if there had been free competitive speculation with correct foresight of future movements. In this case all that the authorities have to do is to anticipate more correctly than private speculators the future course of exchange rates. And in so far as they do so they will make a profit at the expense of the private speculator.”

“A good book on the subject of the customs union has for long been wanted; and now it is provided by Professor Viner's study, which it is difficult to praise too highly.... Professor Viner's study on the economic aspects of customs unions will be of central interest to economists. Indeed for many years this is likely to remain the locus classicus for the economic analysis of customs-union problems.”

“It is a special privilege for me on this occasion to have my name associated with that of Professor Bertil Ohlin. By the younger generation of economists we are no doubt both regarded as what in my country are now known as 'senior citizens'; but I am just that much younger than Professor Ohlin to have regarded him as one of the already established figures when I was first trying to understand international economics. His great work on International and Interregional Trade opened up new insights into the complex of relationships between factor supplies, costs of movement of products and factors, price relationships, and the actual international trade in products, migration of persons, and flows of capital. Of the two volumes which I later wrote on International Economic Policy - namely, The Balance of Payments and Trade and Welfare - it is in the latter that the influence of this work by Professor Ohlin is most clearly marked.”