IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

International capital movements, speculation, and the 'conservation of saving' principle. A 'Harcourtian' interpretation of global imbalances and the global crisis

  • Lilia Costabile

    ()

    (University of Naples Federico II, Italy)

This paper is inspired by the contributions made by Geoff Harcourt concerning the macroeconomics of open economies, international capital movements and speculation (e.g. Harcourt 1994, Dalziel/Harcourt 1997). This conceptual frame- work is developed in a simple model, useful for validating some of Harcourt’s policy proposals for open economies, as well as for interpreting global imbalances and the global crisis. More specifically, this paper describes the workings of two economies, Home and the Rest of the World (RoW), which are related through both trade and capital flows. On this basis, this article: (i) develops the relationship between income levels in a deficit country (Home) and in a partner country (RoW); (ii) studies the role of key parameters in the two countries’ main macroeconomic functions; (iii) applies the main results to global imbalances and in particular to the US, which plays the role of Home in the present context; (v) suggests a possible link between global imbalances, speculation, and the international role of the dollar; (vi) proposes an enlarged version of Harcourt’s 'modest proposal for taming speculators'.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.elgaronline.com/view/journals/ejeep/8-1/ejeep.2011.01.14.xml
Download Restriction: no

Article provided by Edward Elgar in its journal Intervention. European Journal of Economics and Economic Policies.

Volume (Year): 8 (2011)
Issue (Month): 1 ()
Pages: 201-217

as
in new window

Handle: RePEc:elg:ejeepi:v:8:y:2011:i:1:p201-217
Contact details of provider: Web page: http://www.elgaronline.com/ejeep

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:elg:ejeepi:v:8:y:2011:i:1:p201-217. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Craven)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.