IDEAS home Printed from https://ideas.repec.org/h/pal/stuchp/978-1-137-42641-3_6.html
   My bibliography  Save this book chapter

External Imbalances in the European Monetary Union: The Case for Keynesian Income Policy

In: Poland and the Eurozone

Author

Listed:
  • Horst Tomann

Abstract

In the current monetary regime, which has been practised since the breakdown of the BrettonWoods system in 1971, there is no explicit coordination rule for economic policies on an international scale. In particular, central banks are not committed to stabilising exchange rates of their currencies. Whenever imbalances occur in international trade and international movements of capital, these should be contained by adjustments of market exchange rates. Nonetheless, an increasing concern has evolved in recent years regarding the growth of external imbalances that have been disclosed in the current accounts. In several G20 summits proposals came on the agenda to limit current account imbalances in relation to GDP. The background to those attempts at implementing an international coordination rule was the experience that high and lasting deficits in the current account of a country may work as an accelerator in the event of a financial crisis.

Suggested Citation

  • Horst Tomann, 2014. "External Imbalances in the European Monetary Union: The Case for Keynesian Income Policy," Studies in Economic Transition, in: Jens Hölscher (ed.), Poland and the Eurozone, chapter 6, pages 78-107, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-1-137-42641-3_6
    DOI: 10.1057/9781137426413_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:stuchp:978-1-137-42641-3_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.