Documents the changes in the taxation of foreign exchange gains and losses brought about by the Tax Reform Act of 1986. Explains that the timing of recognition of foreign exchange gains and losses is important in determining the effective tax rate on foreign-currency-denominated assets.

Economic analysis offers a powerful tool for analyzing fictional works. In turn, fiction can vividly illustrate the truths of economics. As others have recognized, literature can help introduce students to economic ideas in a non-mathematical way. Yet current empirical research consists...