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

DYNAMICS OF WORLD POLITICS: STUDIES IN THE RESOLUTION OF INTERNATIONAL CONFLICT. Linda B. Miller (ed.). Prentice‐Hall, 1968. Pp. viii + 294. $5.40.

THE UNITED NATIONS AND UNITED STATES SECURITY POLICY. Ruth B. Russell. The Brookings Institution, Washington, D.C., 1968. Pp. ix + 510. $10.00 (U.S.).

THE POLITICS OF PEACE‐KEEPING. Alan James. Studies in International Security: 12. Chatto & Windus, London, for The Institute for Strategic Studies, 1969. Pp. 452. £.3.3.0.

INTERNATIONAL INFORMATION CENTER ON PEACE‐KEEPING OPERATIONS MONOGRAPHS NOS. 6–8. Paris, 1968. $1.00 each.

No. 6 CHARACTERISTICS AND SOME ASPECTS OF LAUNCHING U.N. PEACE‐KEEPING FORCES. Lieut.‐General P. S. Gyani. Pp. 13.

No. 7 PEACE‐KEEPING AND SELF‐DEFENCE. Dr Kjell Goldmann. Pp. 60.

No. 8 THE AUTHORIZATION OF PEACE‐KEEPING OPERATIONS IN TERMS OF THE NATURE OF THE CONFLICT. Albert Legault. Pp. 62

CANADA AND THREE CRISES. Robert W. Reford. Toronto, Canadian Institute of International Affairs, 1968. Pp. xii + 246. $5.00 (Canadian).

SYSTEMS, STATES, DIPLOMACY AND RULES. J. W. Burton. Cambridge University Press, 1968. Pp. xii + 251. $7 (U.S.).

GERMAN FOREIGN POLICY IN TRANSITION. BONN BETWEEN EAST AND WEST. Karl Kaiser. Issued under the joint auspices of the Harvard University Center for International Affairs, the Twentieth Century Fund's ‘Tocqueville Series’ and the Royal Institute of International Affairs. London, Oxford University Press, Oxford Paperbacks No. 159, 1968. Pp. x + 153. $2.00.

PEOPLE'S WAR. THE CONDITIONS AND THE CONSEQUENCES IN CHINA AND IN SOUTH‐EAST ASIA. J. L. S. Girling. London, Allen and Unwin, 1969. Pp. 244. $6.65.

ASIAN CONTRACT LAW. David Allan (General Editor). Melbourne University Press, 1969. Pp. xiii + 237. $9.60.

MODERN FEDERALISM. G. F. Sawer. The New Thinker's Library, No. 29. London, C. A. Watts & Co., 1969. Pp. 204. 15/‐ (U.K.).