Alternative, far more complete, frameworks have been proposed (., Tobin and De Macedo (1980) and Branson and Henderson (1985)) which describe worlds in which mutual trading of assets between two countries take place. But while these were path-breaking studies, neither described the sequential processes which would bring about a state of equilibrium. Much more complex, yet parsimonious, models have been proposed by Godley (1999), Godley and Lavoie (2004) and Taylor (2004), which extended the earlier models by Tobin et al referred to above. There remains a place however for a very simple statement of this alternative view, and.
