Tag Archives: balance of payments constraint

I came across the CPES digital archive today. It has scans of papers which aren’t available elsewhere. There’s an interesting article Causes Of Growth And Recession In World Trade, there by Francis Cripps, in which he describes the Cambridge Keynesian idea of achieving balanced trade, because nations face a balance-of-payments constraint: The Case for Concerted ActionThe Cambridge Political Economy Society Digital ArchiveV. Ramanan

Recently, a colleague emailed with the following set of questions: ‘a balance sheet approach to defending currencies. Do you know literature that explains in detail the globally interlocking balance sheets between central banks, commercial banks and what happens when a national government has to defend its currency? What is the role of national and foreign reserves and how do they travel these balance sheets in the process of trying to defend a currency? I came back to this question when...