Judging by recent issues of this, and other Journals, there is still a keen interest in determining the causes of, and cures for, Balance of Trade and Payments disequilibria. The emergence of the Portfolio Balance Approach—'' has led to viewing Balance of Trade deficits and surpluses as caused by discrepancies between desired and actual wealth holdings, and Balance of Payments deficits (surpluses) as caused by discrepancies between desired and actual money holdings. Thus, Balance of Trade and Payments deficits and surpluses are viewed as representing disequilibrium within the asset markets. Within this framework several authors have asked what self-correcting tendencies exist and whether a devaluation facilitates any tendency towards self-correction.
Lapan, Harvey and Enders, Walter, "Capital Mobility and Devaluation in a Monetary Approach to the Balance of Payments" (1976). Economic Staff Paper Series. 149.