JOURNAL ARTICLE
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Euromärkte, Leistungsbilanz und Geldmenge
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 112 (1992), Iss. 1 : pp. 47–58
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Malliaropulos, Dimitrios
Abstract
This paper investigates the relation between current account balances and domestic money creation, if foreign trade is financed (partly) through the eurocurrency market. The theoretical exposition is followed up by an empirical test, using an „Error Correction Model", of the hypothesis that german current account balances are in part financed through the euro-DM-market. The empirical result supports the supposition that a considerable part of the german current account surplus is placed in the euromarket. To this extend there is a reduction of the effect of current account balances on the domestic money stock.