Editors’ Summary of the Brookings Papers on Economic Activity – 1986 No 1

George L. Perry and

George L. Perry Senior Fellow Emeritus - Economic Studies

William C. Brainard

WCB

William C. Brainard

THIS ISSUE of Brookings Papers on Economic Activity contains papers
and discussions presented at the forty-first conference of the Brookings
Panel on Economic Activity, which was held in Washington, D.C., on
April 3 and 4, 1986. Three major articles cover, respectively, the role of
liquidity constraints in tax policy analysis, the perplexing relationship
between short-term and long-term interest rates, and the relations
between the cost of capital and business fixed investment. A special
symposium of four short papers explores exchange rate, trade, and
capital flow issues arising from the fluctuation of the dollar’s exchange
rate during the early 1980s.