Special drawing rights and inflation

Zusammenfassung Sonderziehungsrechte und Inflation. — Der Aufsatz überprüft die Frage, ob die Schaffung von Sonderziehungsrechten inflation?re Konsequenzen hat. Es wird ein Modell formuliert und die Analyse auf die Frage konzentriert, in welcher Weise neu geschaffene Sonderziehungsrechte in das monet?re System eines Landes Eingang finden. Die wichtigsten Schlu\folgerungen der Analyse sind: 1. Die blo\e Zuteilung von Sonderziehungsrechten wirkt nicht inflation?r. 2. Das gleiche gilt für die Verwendung von Sonderziehungsrechten. Allerdings erm?glicht diese es, eine hausgemachte Inflation dadurch zu verl?ngern, da\ sie schlie\lich auftretende zus?tzliche Handelsbilanzdefizite abdeckt. Doch selbst dann kann die Schaffung von Sonderziehungsrechten nicht als die Triebkraft der Inflation bezeichnet werden, denn Ursache der Inflation bleibt der Erwerb heimischer Aktiva durch die geldpolitischen Instanzen.

---

Résumé Droits spéciaux de tirage et l’inflation. — Cet article réexamine la question si la création de droits spéciaux de tirage entra?ne des conséquences inflationnistes. Un modèle est formulé, et l’analyse est concentrée sur la question de quelle manière des nouveaux droits spéciaux de tirage s’introduisent dans le système monétaire d’un pays. Les conclusions les plus importantes sont: 1. La seule allocation de ces droits n’est pas inflationniste, puisqu’elle n’affecte ni le volume, ni le développement de la base monétaire d’un pays. 2. Il en est de même en ce qui concerne l’utilisation de ces droits, excepté qu’elle permette à un pays de prolonger une inflation nationale en couvrant des déficits de commerce additionnels qui émergeront à la fin. Cependant, ce n’est pas, dans ce cas non plus, la création de droits spéciaux de tirage qui constitue la force motrice de l’inflation; c’est toujours l’acquisition d’actifs nationaux par les autorités monétaires.

---

Resumen Derechos especiales de giro e inflacion. — El articulo se ocupa de la pregunta, si la creación de derechos especiales de giro tiene consecuencias inflacionarias. Para ello se construyó un modelo y el análisis se concentró sobre la pregunta, de qué manera la creación de nuevos derechos especiales de giro encuentran cabida dentro del sistema monetario de un país. Las conclusiones más importantes del anàlisis son: (1) La meradistributión de derechos especiales de giro no tiene influencias inflacionarias. (2) Lo mismo vale para lautilization de derechos especiales de giro. Ella permite, sin embargo, prolongar la duración de una inflación de origen doméstico por medio del cubrimiento de deficits de balanza comercial que puedan aparecer. Pero incluso entonces no se puede denominar la utilización de derechos especiales de giro como la fuerza propulsora de la inflación, ya que la causa de ella sigue siendo la compra de activos domésticos por parte de las autoridades monetarias.

---

Riassunto Diritti speciali di prelievo ed inflazione. — L’articolo verifica il problema se la creazione di diritti speciali di prelievo abbia conseguenze inflazionistiche. Viene formulato un modello e l’analisi è concentrata sul seguente problema: in che maniera diritti speciali di prelievo di nuova creazione entrano a far parte del sistema monetario di un Paese. Le più importanti conseguenze dell’ analisi sono: (1) La semplice assegnazione di diritti speciali di prelievo non opera in modo inflazionistico. (2) La stessa cosa vale per l’impiego di diritti speciali di prelievo. Certamente questo rende possibile ciò, di prolungare un’inflazione fatta in casa, per il fatto che esso copre in definitiva deficit di bilancia del commercio che compaiono aggiuntivamente. Però anche in questo caso la creazione di diritti speciali di prelievo non può essere definita forza motrice dell’inflazione, poiché causa dell’inflazione rimane l’acquisto di attivi interni da parte delle istanze politico-monetarie.

     

Equilibrium Search Models and the Transition From School To Work

This paper applies the Burdett–Mortensen (1998) equilibrium search model to study the school to work transitions of U.S. high school graduates. We consider the case of discrete firm heterogeneity and provide a computational method to obtain the MLE. Our results show that unemployed blacks receive fewer offers than whites and employed blacks are more likely to lose their jobs. Importantly, employed blacks and whites receive job offers at the same rate. Assigning the whites' search parameters to the blacks and re-solving reveals that 75 percent of the observed wage differential is explained by the job destruction rate differences.     

Portfolio choice,transactions costs and monopoly power

By using optimal stochastic control, where risk can be reduced by appropriate efforts, monopoly power is shown to engender reduced efforts to lower risk. It therefore gives rise to a relatively high ratio of liquid assets to net wealth. Furthermore, a decline in demand is shown to generally elicit increased efforts to reduce risk and thus yields an augmented share of risk bearing assets in the portfolio. These predictions are corroborated by invoking empirical evidence that pertains to West German industries. It thus appears that a capitalist economy is characterized by a built-in-mechanism stabilizing macroeconomic activity. This mechanism, however, is attenuated by monopoly power. That provides an additional rationale for competition policy.     

Offsetting capital flows: A reexamination of the German case

According to Ricardo's law fixed exchange rates and perfectly integrated capital markets hinder the authorities of a small open economy to run an independent monetary policy. Any action will be completely offset by interest rate induced capital flows. The paper reexamines the German experience of the 'sixties. It is shown that the results of previous research that suggested a relatively high degree of offsetting do not hold. The evidence presented indicates that not more than about 50 percent of autonomous changes in the German monetary base were offset by interest rate induced capital flows during the same quarter     

Innovations and market structure in West German industries

The authors analyse the relationship between industry concentration and industry's R&D and innovative activities, for West German industries during the period 1965–1977. The most striking result produced by a single equation model and a simultaneous equations model is the adverse impact of size and industry concentration on productivity growth. On the other hand, however, both size and concentration give rise to faster growth of sales which in turn enhances productivity growth.