The transfer problem in
international trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy)
In most countries, such trade represents a significan ...
refers to the possibility that a debtor country might end up
better off after making payments to its creditor countries. It was a subject of debate between
John Maynard Keynes
John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
and
Bertil Ohlin
Bertil Gotthard Ohlin () (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People's Party, a social-liberal ...
in the 1920s, regarding the issue of the ability of
German reparation payment after World War I. In general terms, it refers to the effect of transfer of income on the donor's
terms of trade
The terms of trade (TOT) is the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods.
An ...
. The reversal of capital flows force countries to go from a
current account Current account or Current Account may refer to:
* Current account (balance of payments), a country's balance of trade, net of factor income and cash transfers
* Current account (banking), a checking account, held at a bank or other financial ins ...
deficit to a current account surplus.
See also
*
Balance of trade
The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain time period. Sometimes a distinction is made between a balance ...
*
Index of international trade articles
This is a list of international trade topics.
* Absolute advantage
* Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
* Asia-Pacific Economic Cooperation (APEC)
* Autarky
* Balance of trade
* Barter
* Bilateral Investme ...
*
Transfer pricing
In taxation and accounting, transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort ...
References
*Barry W. Ickes. (2009). ''The Transfer Problem''
*Yves Balasko, (2014)
The transfer problem: A complete characterization*Paul R. Krugman, Maurice Obstfeld. (2006) ''International Economics: Theory and Policy.'' (7th edition). Pearson. .
Debt
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