Bhagwati Jagdish N. author Columbia University. Economics Columbia University. Political Science Brecher Richard A. author Hatta Tatsuo author Columbia University. Economics originator text Articles 1987 English This paper generalizes the Global Correspondence Principle by extending, in two major ways, Paul Samuelson's 1971 analysis of the exchange rate response to an international purchasing-power transfer. We analyze the price effect of a shift in any parameter, not necessarily a transfer. We then explore the resulting adjustments in any nonprice variable such as welfare. As our analysis shows, the direction of these adjustments depends neither on whether they are small or large nor on whether equilibrium is locally stable or unstable. Economic theory 77 1 124 132 1987-03 http://hdl.handle.net/10022/AC:P:14779 NNC NNC 2012-09-27 12:55:33 -0400 2012-09-27 13:03:23 -0400 8787 eng