Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230621 
Year of Publication: 
2021
Series/Report no.: 
ifso working paper No. 10
Publisher: 
University of Duisburg-Essen, Institute for Socio-Economics (ifso), Duisburg
Abstract: 
This paper analyses the emergence of internal debtor-creditor relationships within a monetary union. Developing a stock- ow consistent model consisting of three regions - North, South, and the Rest of the World (RoW), where North and South form a monetary union - it shows how the simultaneous presence of investment booms, declining export performance and mercantilist policies within a monetary union can interact in order to create Minsky-type boom-bust cycles. Fiscal policy and an internal lender of last resort can help sustain economic life under existing structural imbalances, though without eliminating the root causes of boom-bust patterns.
JEL: 
E12
F41
F45
G01
G18
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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