Money and Other Assets in the Adjustment Process under Fixed Exchange Rates

  • Giancarlo Gandolfo


As mentioned in Sect. 11.4, we propose in the present chapter to begin the examination of the processes of adjustment of the balance of payments in which money plays an essential part and in which stock disequilibria are taken into consideration. The prototype of the processes in which money-stock disequilibria regulate the whole is the classical model of gold flows (flows which derive precisely from the adjustment of stocks) that goes back to Hume (1752), to which — with a jump of more than two hundred years — the proponents of the monetary approach to the balance of payments declare their allegiance.


Interest Rate Monetary Policy Fiscal Policy Money Supply Excess Demand 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1986

Authors and Affiliations

  • Giancarlo Gandolfo
    • 1
  1. 1.Faculty of Economics and CommerceUniversity of RomeRomeItaly

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