 CAUSES AND EFFECTS OF PRIVATE CAPITAL MOVEMENTS IN GERMANY, 1955‐69*René Erbe Kyklos, 1970, vol. 23, issue 4, 927-941 Abstract: This paper analyses the German private capital movements in the period 1955‐69. For this period it cannot be said that the capital movements played an equilibrating role in the balance‐of‐payments: In eight of the fifteen years a current surplus was coupled with a capital inflow; in one year (1969) the capital outflow was twice as high as the current surplus. To these disequilibrating capital movements the following causes have contributed: (i) frequent conflicts between internal and external equilibrium in the conduct of monetary policy; (ii) the political impossibility of an adequate policy mix; (iii) in conflict situations priority was given to internal considerations; (iv) speculative movements anticipating a revaluation. Germany frequently succeeded in influencing domestic credit conditions in the desired direction despite of countervailing capital flows. In 1960 and 1969, when a domestic boom was coupled with a substantial current surplus, partial controls of capital movements were not successful and Germany had to revalue. A regression analysis for the period 1959‐68 supports the hypothesis that the private capital balance is a negative function of the current balance and positively correlated with the interest differential between Germany and the Euro‐dollar market. Date: 1970 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:23:y:1970:i:4:p:927-941 Ordering information: This journal article can be ordered from Access Statistics for this article Kyklos is currently edited by Rene L. Frey More articles in Kyklos from Wiley Blackwell |
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