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No Capital Mobility between Union and Rest of the World

  • Michael Carlberg
Part of the Contributions to Economics book series (CE)

Abstract

As a rule, in this book, we assume that there is perfect capital mobility between the union and the rest of the world. As an exception, in this chapter, we assume that there is no capital mobility between the union and the rest of the world. The case of capital immobility can occur for two reasons. First, if foreign debt of the union exceeds a critical level. And second, if capital controls are introduced to prevent speculative attacks.

Keywords

Interest Rate Monetary Policy Current Account Fiscal Policy Monetary Union 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Physica-Verlag Heidelberg 1999

Authors and Affiliations

  • Michael Carlberg
    • 1
  1. 1.Department of EconomicsFederal UniversityHamburgGermany

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