WAGHSTUMSBEDINGTE KONFLIKTE ZWISCHEN EXTERNEM GLEICHGEWICHT UND INTERNEN ZIELSETZUNGEN

Abstract

SUMMARY The price- and income-elasticities of imports and primarily rates of growth and relative price-level changes in the countries involved are the most important determinants of the external situation of a country. Growth and price trends are at the same time important target variables of internal policy. Balance on current account is only achievable if these determinants are related in a certain way both abroad and at home. If the proportions required are not to be realized, conflicts arise between external and internal balance. International co-ordination of growth policies may diminish the danger of such conflicts situations. When a larger number of economic objectives can be managed simultaneously there is also a bigger number of constellations which are compatible with external balance. If on the other hand conditions of growth are very different it is usually not possible to bring in accordance internal and external goals.