This book examines the causes, consequences and policy significance
of international capital movements and nations' external account
imbalances. Traditional theoretical approaches to balance of
payments analysis, such as the classical, elasticities, absorption,
monetary and Mundell-Fleming models are critically evaluated
against an extended international macroeconomic accounting
framework. More meaningful capital theoretic models then link
saving, investment and foreign capital movements to highlight the
macroeconomic gains from international capital mobility and
international trade in saving.
General
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