The evolution of debtor-creditor relationships within a monetary union: Trade imbalances, excess reserves and economic policy
This paper analyses the emergence of internal debtor-creditor relationships within a monetary union. Developing a stock-flow consistent model consisting of three regions - North, South, and the Rest of the World (RoW), where North and South form a monetary union - it shows how the simultaneous presence of investment booms, declining export performance and mercantilist policies within a monetary union can interact in order to create Minsky-type boom-bust cycles. Fiscal policy and an internal lender of last resort can help sustain economic life under existing structural imbalances, though without eliminating the root causes of boom-bust patterns.
Year of publication: |
2021
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Authors: | Gräbner, Claudius ; Heimberger, Philipp ; Kapeller, Jakob ; Landesmann, Michael ; Schütz, Bernhard |
Publisher: |
Linz : Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE) |
Subject: | Gläubiger | Kredittilgung | Finanzpolitik | Währungsunion | Nord-Süd-Beziehungen | Welt |
Saved in:
freely available
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 1747731811 [GVK] hdl:10419/230623 [Handle] |
Classification: | E12 - Keynes; Keynesian; Post-Keynesian ; F41 - Open Economy Macroeconomics ; f45 ; G01 - Financial Crises ; G18 - Government Policy and Regulation |
Source: |
Persistent link: https://www.econbiz.de/10012431215