Transfers, money and the balance of payments

Steven Brakman and Charles Marrewijk

No 199911, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: The literature on international transfers largely ignores the fact that transfers are often given in the form of money. We analyze both the welfare consequences of financial transfers for the donor and the recipient, and their impact on the current account. Under normal circumstances transfer paradoxes do not occur, the donor's current account deteriorates and the recipient's current account improves.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:gro:rugccs:199911

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