I. Introductory, 360. — The purchasing-power-parity doctrine; objections to it, 361. — II. The foreign exchange markets, 364. — General method; basic assumptions, 367. — The principal media of international payment, 368. — Mechanism of the exchange market; equilibrium tendencies, 369. — The formula for media of payment; for the exchange rate, 376. — The short-run par of exchange under paper, 379. — III. The commodity markets, 383. — The relations between prices of media of payment and of commodities, 385. — The formula for exports and imports; nature of the equilibrium tendencies, 389. — Changes in the volume of commodity movements, 392. — Mechanism of the exchange and commodity markets in a specific case of disturbance, 394. — Summary of results to this point, 398. — IV. Long-run aspects, 399. — Long-run results of the specific disturbance previously examined, 400. — Relations between domestic and international prices, 404. — The business cycle, 408. — The paper par of exchange, 410. — Conclusion, 411.