Abstract
This chapter analyses the relationship between international finance and macroeconomic activity by combining aspects of production, trade and finance theory. It adapts and extends the precepts of Irving Fisher’s (1930) intertemporal theory of interest rates by first highlighting the linkages between consumption, saving, investment, international financial flows, interest rates, national income, foreign debt and national wealth. It then shows how international trade in saving confers macroeconomic welfare gains before reconciling intertemporal analysis with a loanable funds approach that can be used as a basis for interpreting international capital mobility.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Copyright information
© 2003 A.J. Makin
About this chapter
Cite this chapter
Makin, A.J. (2003). Intertemporal Trade, Capital Mobility and Interest Rates. In: Global Finance and the Macroeconomy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230504035_4
Download citation
DOI: https://doi.org/10.1057/9780230504035_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-4039-1893-2
Online ISBN: 978-0-230-50403-5
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)