Transfer problem
Encyclopedia
The 'transfer problem' is a subject of debate between Keynes and Bertil Ohlin
in the 1920s. The reversal of capital flows force countries to go from a current account
deficit to a current account surplus.
Bertil Ohlin
Bertil Gotthard Ohlin 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 party which at the time was the largest party in opposition to the governing Social...
in the 1920s. The reversal of capital flows force countries to go from a current account
Current account
In economics, the current account is one of the two primary components of the balance of payments, the other being the capital account. The current account is the sum of the balance of trade , net factor income and net transfer payments .The current account balance is one of two major...
deficit to a current account surplus.