The Theory and Practice of Commercial Policy: Departures from Unified Exchange Rates by Jagdish Bhagwati. International Finance Section, Depart¬ment of Economics, Princeton University, 1968.

In this small volume, Bhagwati paints a broad canvas but is sparing in detail. He defines “unified exchange rates” to include not only the existence of a single rate of exchange applicable to all external transactions but also the absence of any taxes, subsidies, premia, quotas, or, administered prices in both internal and external markets. In short, a “departure from unified exchange rates” is any policy or circumstance which departs from the conditions of the perfectly competitive model. Bhagwati writes in the neo-classical tradition. However, as the argument progresses, it is clear that he is concerned about policies of interference with external trade.