INTERREGIONAL ARBITRAGE AND THE SUPPLY OF LOANABLE FUNDS: A MODEL OF INTERMEDIATE FINANCIAL CAPITAL MOBILITY*

ABSTRACT This paper develops a model of regional financial markets which can encompass different degrees of spatial financial integration. The behavior of the system is analyzed under alternative assumptions about the time frame of analysis and the extent of the flexibility of interest rates. It is argued that links may exist between regional real and financial sectors even in the short run and that such links must, through the regional balance of payments, exist in the long run, even where there is perfect financial spatial integration. It is observed that these relationships have generally been ignored by regional economic model builders.     

Rowley on the aboriginal condition

C. D. Rowley, Aboriginal Policy and Practice, Australian National University Press, Canberra, 1970–71: Volume I, The Destruction of Aboriginal Society, pp. xii + 430; Volume II, Outcasts in White Australia, pp. xiv + 472; Volume III, The Remote Aborigines, pp. vii + 379. $6.50 per volume. All three also in Penguin, Melbourne, 1972, at $2.50 per volume.     

Reviews

THE GLASS CURTAIN BETWEEN ASIA AND EUROPE. Raghavan Iyer (ed.). London, Oxford University Press, 1965. Pp. 356. Australian price 64/6d.

NEO‐COLONIALISM: THE LAST STAGE OF IMPERIALISM. Kwame Nkrumah. London, Thomas Nelson and Sons, 1965. Pp. xx + 280. Australian price 66/‐.

THE ELEPHANTS AND THE GRASS. Cecil V. Crabb. New York, Frederick A. Praeger, 1965. Pp. xiii + 237. Australian price 62/‐.

CHINA AND THE BOMB. Morton Halperin. London, Pall Mall Press, 1965. Pp. 166, $5.10.

ON ESCALATION: METAPHORS AND SCENARIOS. Herman Kahn. London, Pall Mall Press, 1965. Pp. 308. $6.60.

NUCLEAR DISPERSAL IN ASIA AND THE INDO‐PACIFIC REGION. A. L. Burns, Nina Heathcote and G. P. King. Canberra, The Australian institute of International Affairs and The Australian National University, 1965. Pp. ii + 101. $1.50 Australian.

THE SECURITY OF SOUTHERN ASIA. D. E. Kennedy. For The Institute for Strategic Studies. London, Chatto and Windus, 1965. Pp. xi + 101. $5.80 Australian.

ISLAM IN THE MODERN NATIONAL STATE. E. I. J. Rosenthal. London. Cambridge University Press, 1965. Pp. xxi + 416. 55/‐ stg.

ISLAM AND INTERNATIONAL RELATIONS. J. Horris Proctor (ed.). London, Pall Mall Press, 1965. Pp. viii + 221. $7 Australian.

LIVING WITH ASIA. J. F. Cairns. Melbourne, Lansdowne Press, 1965. Pp. 179. $2.50 Australian.

BARBARIAN BEDS. THE ORIGIN OF THE CHAIR IN CHINA. C. P. Fiiz‐Gerald. Canberra, The Australian National University; London, The Cresset Press, 1965. Pp. xvii + 85. Australian price £5/5/‐.

THE CHINESE MODEL. Werner Klatt (ed.). Hong Kong University Press, 1965. Pp. xix + 233. Australian price 34/6d.

CHINESE COMMUNIST EDUCATION. RECORDS OF THE FIRST DECADE. Stewart Fraser (ed.). Nashville, Vanderbilt University Press, 1965. Pp. xvi + 542. U.S. $10.

THE UNITED STATES AND JAPAN. Herbert Passin (ed.). For the American Assembly, Columbia University. Englewood Cliffs, New Jersey, Prentice Hall, Inc., 1966. Pp. ix + 169. $U.S. 3.95.

DEMOCRACY IN PAKISTAN. G. W. Choudhury. Vancouver, University of British Columbia, 1964. Pp. xix + 309. $6.00 Canadian.

THE UNITED STATES AND CANADA. J. S. Dickey (ed.). New York, The American Assembly, Columbia University, 1964. Pp. 184. $U.S. 3.95.