Review

K. Alec Chrystal guides the reader through the complexities of foreign exchange markets. Chrystal first describes how currencies are traded, pointing out the key differences between the retail markets and the wholesale or interbank markets for “spot” foreign exchange.

R. W. Hafer notes that some have questioned the reliability of the link between M1 and GNP, given recent velocity developments in 1982 and 1983. He investigates the empirical relationship between economic activity and two alternative transaction measures of money.