Transferproblem

The term transfer problem ( Transfer: transfer, transfer ) are, Payment, currency and understood risk, which at the time of transfer of goods, services, capital, foreign exchange in the form of export of the domestic to the foreign country or the payments of a country is a otherwise occur. The transfer problem has been recognized in economic theory on the economic consequences of the First World War and coined in the 1920s, the scientific debate between John Maynard Keynes and Bertil Ohlin.

Generally

The transfer problem has been detected with the reparations and the economic collapse of Germany after the First World War. It developed the transfer theory with three mechanisms:

• The classical mechanisms
• The Keynesian mechanisms
• The neoclassical mechanisms

Man investigated in the transfer theory, the effects of international capital transfer and reparations, international bonds and international financial donations to key economic variables of the participating countries.

In addition, means the transfer problem as the impact of international transfers on the terms of trade. Under the terms of trade (trade conditions) is the ratio between the value of exports and the value of imports.

• When the export price is lower than the import price, then the terms of trade deteriorate.
• When the export price is greater than the import price, then improve the terms of trade.

Monetary transfer

The monetary transfer means the transfer of capital in the form of bonds and reparations to the other countries.

Example:

• Country A (abroad) is intended to provide the government of country B (domestic ) a euro bond available. If country A this bond is not directly used to purchase goods in the country B, it comes to the following conclusion: The foreign exchange demand in country A increases by these capital inflows, whereby the monetary transfer is successful.
• A director of a company sells shares in the company in the value of X to a foreigner and he uses the funds to build his business. It concludes :: In Germany: The import of capital leads to an increase of domestic income and a rise in demand for investing activities.

Real transfer

As the real transfer is defined as the export surplus of goods and services or the change in exports and imports. It's simple: The manager uses the transferred money to buy goods. Then we have a so-called real transfer.

• The transfer problem is investigated in the classical mechanism and is the ratio between import, export and total output change. Decreases the total output change, then spending on domestic goods or for Imported goods can go back. The result is the decline in domestic imports.

• The transfer problem is investigated in the Keynesian mechanism and the influence on the export of capital in both countries. Especially, we have the relationship between income and the import, export price.

Then:

• The transfer problem is investigated in the neoclassical mechanism and is the international transfer of resources. Example: Country A transfers the machinery or mechanical equipment in country B, or the companies and public institutions in the country B take the bond of country A for the purchase of capital goods on.

• As part of the transfer problem, the direct impact of the transfer is analyzed on the demand side as well as whether the monetary transfer has a real transfer result.