The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Transfer Problem

  • Philip Brock
Reference work entry


A financial transfer of wealth between countries necessitates adjustments in expenditure, production, and relative prices that collectively comprise the transfer problem. Since the 1920s the transfer problem arising from war reparations and other unrequited transfers has occupied the attention of Keynes, several Nobel laureates, and other distinguished economists. The early literature centred on static two-country models of transfers, while more recent research has highlighted the intertemporal dimension of the transfer problem.


Infinite horizons Intertemporal models Intertemporal terms of trade Overlapping generations model Reparations Representative agent Terms of trade Transfer paradox Transfer problem Walras’s Law 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Philip Brock
    • 1
  1. 1.