Foreign Capital As an Instrument of National Economic Policy : A Study Based on the Experience of East European Countries Between the World Wars

on whom I relied for advice in different phases of my research and writing. My colleague Professor Noel J. J. Farley of Boston College read critically Part III and suggested numerous improvements; Professor J oen E. Greenwood ofWellesleyCollegeperformed the same service with Part IV. Professor Vlad Thomas of the University of Minnesota helped to improve the style. Also, I ~cknowledge indebtedness to Boston College for providing certain secretarial services. Lastly, special thanks are due to my wife, Sophia, for her help and encouragement. Boston College January, 1964 V. N. BANDERA AUTHOR'S NOTE TO SECOND EDITION Aside from minor modifications, this revised edition retains the original methodology since I judge it to be most appropriate for my purposes. Recently, the hightened interest in development economics has stimulated much useful research an foreign loans as they relate to capital accumulation in open economies. Especially important in this area are the published results of the Economic Department of the International Bank for Reconstruction and Development under the guidance of Dragoslav Avramovic. However, since the appearance of the first edition, little has been written on the historical aspects covered by this monograph. Front Matter....Pages I-XIV Front Matter....Pages 1-1 The Background....Pages 3-6 The Scope of this Study....Pages 7-11 The Method....Pages 12-14 Front Matter....Pages 15-17 The Contribution of Foreign Capital to Stabilization (1918–25)....Pages 18-32 Capital Movements and Levels of Economic Activity before the Great Depression (1925–30)....Pages 33-43 Consequences of the Collapse of International Capital Markets during the Great Depression (1930–39)....Pages 44-54 Conclusion: Net Gains in a Dynamic Setting....Pages 55-56 Front Matter....Pages 57-60 Criteria for Appraising the Efficiency of Allocation of Foreign Capital....Pages 61-65 Allocation of Public External Loans....Pages 66-70 Allocation of Private External Loans....Pages 71-75 An Appraisal of Allocation of Foreign Capital....Pages 76-80 Allocation of Capital under the Test of Rapidly Changing Economic Conditions....Pages 81-85 Front Matter....Pages 87-90 Economic Adjustments from the Standpoint of External Balances....Pages 91-103 Capital Movements and Exchange Stability....Pages 104-110 Problems of Debt Servicing....Pages 111-121 Front Matter....Pages 123-125 Historical Summary and Analytical Conclusions....Pages 126-138 Some Broader Aspects of International Finance....Pages 139-145 Back Matter....Pages 146-156