The Effects of Inalation on the Balance of Trade of West Germany: 1960-1965

Abstract

This paper grew out of a shorter paper written on the same topic for a course in International Economics in the Summer Quarter of 1966. The scope of this paper was originally to have encompassed the effects of domestic and "imported" inflation on the whole of West Germany's balance of payments from 1960-65. However, it became evident after considerable research that the topic would have to be more confined. Since the trade balance is the section of the balance of payments most affected by both domestic and "imported" inflation and the one which best lends itself to economic analysis, the final topic was limited to the effects of inflation on the trade balance.