Conflicted virtue
As conflicted virtue (English conflicted virtue ) is called in economics , a situation in which a country on the capital market is not in its own currency can lend and therefore loans in foreign currency must be awarded.
"Any international creditor country that cannot lend in its own currency cumulates a currency mismatch that we call the syndrome of conflicted virtue."
Such a situation is the opposite of the original Sin . It occurs when a "virtues" country with a high savings rate builds up ever larger currency reserves over a longer period of time through a balance of payments surplus . This is particularly problematic for residents (e.g. Chinese) if they are forced to, e.g. For example, to hold high reserves of foreign currency (e.g. dollars) because of international trade relations, because if your currency were to appreciate (i.e. for this example to get less of your everyday currency yuan for dollars held), your asset position would worsen.
Individual evidence
- ↑ Kenneth A. Reinert, Ramkishen S. Rajan, Amy Joycelyn Glass, Lewis S. Davis: The Princeton Encyclopedia of the World Economy. (Two volume set) . Princeton University Press, Aug. 2, 2010, ISBN 1-4008-3040-0 , pp. 213–21 .
- ↑ The Problem of Conflicted Virtue, McKinnon / Schnabel 2003 ( Memento of the original from November 26, 2006 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 730 kB)
