Facoltà di scienze economiche

World monetary discrepancies : A new macroeconomic analysis

Cencini, Alvaro

This paper suggests that the global current account and global capital and financial account discrepancies are the twin result of a common cause. This cause can be identified in the payment of net interests on debt. Re-interpreting the World Bank’s definition of capital flight, we will show that both discrepancies can be consistently accounted for by Schmitt’s analysis of the double charge... Mehr

Zum persönliche Liste hinzufügen
    Summary
    This paper suggests that the global current account and global capital and financial account discrepancies are the twin result of a common cause. This cause can be identified in the payment of net interests on debt. Re-interpreting the World Bank’s definition of capital flight, we will show that both discrepancies can be consistently accounted for by Schmitt’s analysis of the double charge of net interests’ payments. As strikingly confirmed by statistical evidence, the pathological payment of net interests between countries explains away the mystery of the ‘missing surplus’ while accounting for what has been considered so far as an understatement of international capital flows.