We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
CLANDESTINE CAPITAL MOVEMENTS IN BALANCE OF PAYMENTS ESTIMATES.
- Authors
Adler, John H.
- Abstract
This article reports that the exceedingly large amounts recorded as "errors and omissions" in the balance of payments statements of the U.S. in 1947, 1948, and 1949 have been taken in various quarters as indicative of a substantial volume of hidden capital movements to the U.S. The purpose of this article is to show that technically there is little quantitative relationship between the volume of capital flight and the amounts shown as "errors and omissions" in the balance of payments statements. It is informed that between 1947 and 1949, "errors and omissions" in the U.S. balance of payments always represented a drain on the supply of dollars. Ever since the fall of 1948, rumors about an impending devaluation of foreign currencies have been abroad. They certainly offered strong incentives to capital flight--which would have to appear as positive "errors and omissions" in the U.S. balance of payments. As a matter of fact, the positive "errors and omissions" declined considerably in the last quarter of 1948 and in the first two quarters of 1949, but it would be rather far-fetched to interpret this as indicating the occurrence of negative entries, offsetting in part the positive amounts.
- Subjects
UNITED States; BALANCE of payments; FOREIGN exchange; CAPITAL movements; INTERNATIONAL finance; FINANCE
- Publication
Quarterly Journal of Economics, 1950, Vol 64, Issue 3, p477
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1884561