Diskussionsbeitrag / Discussion. Paper David Hume und die Target-Salden

Peter Spahn

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2012, vol. 232, issue 4, 482-488

Abstract: According to David Hume, the specie flow mechanism allows a stabilisation effect in the case of diverging current account imbalances in a gold standard system. Likewise in EMU, trade deficits and capital flight in GIPS countries generate a transfer of euro reserves into surplus countries. Positive Target balances do not represent credit claims on deficit countries. Money creation on behalf of GIPS national central banks contradict wise principles of monetary policy making, but it may contribute to the necessary restoration of price competitiveness.

Keywords: Specie flow mechanism; gold standard; EMU; current account imbalances; Specie flow mechanism; gold standard; EMU; current account imbalances (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:232:y:2012:i:4:p:482-488

DOI: 10.1515/jbnst-2012-0407

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