EconPapers    
Economics at your fingertips  
 

The evolution of debtor-creditor relationships within a monetary union: Trade imbalances, excess reserves and economic policy

Claudius Gräbner, Philipp Heimberger (), Jakob Kapeller (), Michael Landesmann () and Bernhard Schütz

No 10, ifso working paper series from University of Duisburg-Essen, Institute for Socio-Economics (ifso)

Abstract: This paper analyses the emergence of internal debtor-creditor relationships within a monetary union. Developing a stock- ow consistent model consisting of three regions - North, South, and the Rest of the World (RoW), where North and South form a monetary union - it shows how the simultaneous presence of investment booms, declining export performance and mercantilist policies within a monetary union can interact in order to create Minsky-type boom-bust cycles. Fiscal policy and an internal lender of last resort can help sustain economic life under existing structural imbalances, though without eliminating the root causes of boom-bust patterns.

JEL-codes: E12 F41 F45 G01 G18 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-mac, nep-opm and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/230621/1/1747744646.pdf (application/pdf)

Related works:
Working Paper: The evolution of debtor-creditor relationships within a monetary union: Trade imbalances, excess reserves and economic policy (2021) Downloads
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:zbw:ifsowp:10

Access Statistics for this paper

More papers in ifso working paper series from University of Duisburg-Essen, Institute for Socio-Economics (ifso) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-10-23
Handle: RePEc:zbw:ifsowp:10