Trade, Capital Flows and the Balance of Payments

Thomas Lagoarde-Segot ()
Additional contact information
Thomas Lagoarde-Segot: KEDGE Business School and SDSN France

Chapter Chapter 8 in Ecological Money and Finance, 2023, pp 225-260 from Springer

Abstract: Abstract With the opening of an economy to the rest of the world, the economic and financial situation of each agent no longer depends solely on the economic decisions made by his or her fellow citizens, but also on the decisions made by foreign economic agents. This dynamic, which introduces more complexity into the economic system, is double-edged. It undeniably increases economic freedom: indeed, the possibility of carrying out transactions with foreign countries opens up new consumption and investment choices for economic agents. But, at the same time, it introduces new constraints: foreign consumers now compete with domestic consumers for goods produced by domestic firms, foreign firms compete with domestic firms for payments from those same consumers, and the complex investment strategies of international banks and asset managers affect investment, exchange rates as well as domestic prices. Not surprisingly, one of the most fundamental and long-standing controversies in economics concerns the effects of economic openness on social provisioning. In the context of the Anthropocene, this problem is now coupled with new questions: what is the impact of trade flows on CO2 emissions? Should we roll back international financial liberalization? Will the international financial architecture have to be reconfigured to achieve the Sustainable Development Goals? These are some of the issues addressed in this chapter.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-14232-1_8

Ordering information: This item can be ordered from
http://www.springer.com/9783031142321

DOI: 10.1007/978-3-031-14232-1_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().