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Diskussionsbeitrag / Discussion. Paper David Hume und die Target-Salden

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  • Spahn Peter

    (Lehrstuhl Wirtschaftspolitik, Universität Hohenheim (520A), 70593 Stuttgart, Germany)

Abstract

According to David Hume, the specie flow mechanism allows a stabilisation effect in the case of diverging current account imbalances in a gold standard system. Likewise in EMU, trade deficits and capital flight in GIPS countries generate a transfer of euro reserves into surplus countries. Positive Target balances do not represent credit claims on deficit countries. Money creation on behalf of GIPS national central banks contradict wise principles of monetary policy making, but it may contribute to the necessary restoration of price competitiveness.

Suggested Citation

  • Spahn Peter, 2012. "Diskussionsbeitrag / Discussion. Paper David Hume und die Target-Salden," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(4), pages 482-488, August.
    • Handle: RePEc:jns:jbstat:v:232:y:2012:i:4:p:482-488
    DOI: 10.1515/jbnst-2012-0407
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Timo Wollmershäuser, 2012. "Target loans, current account balances and capital flows: the ECB’s rescue facility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 468-508, August.
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    4. Alan S. Blinder, 2012. "Revisiting Monetary Policy in a Low-Inflation and Low-Utilization Environment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44, pages 141-146, February.
    5. Garber, Peter M., 1999. "The target mechanism: Will it propagate or stifle a stage III crisis?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 51(1), pages 195-220, December.
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