Year: 1992
Author: Malliaropulos, Dimitrios
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 112 (1992), Iss. 1 : pp. 47–58
Abstract
This paper investigates the relation between current account balances and domestic money creation, if foreign trade is financed (partly) through the eurocurrency market. The theoretical exposition is followed up by an empirical test, using an „Error Correction Model", of the hypothesis that german current account balances are in part financed through the euro-DM-market. The empirical result supports the supposition that a considerable part of the german current account surplus is placed in the euromarket. To this extend there is a reduction of the effect of current account balances on the domestic money stock.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.112.1.47
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 112 (1992), Iss. 1 : pp. 47–58
Published online: 1992-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 12