The paper deals with the long run positive relationship between the long term rate of interest and the level of wholesale prices, a relationship dubbed by Keynes the "Gibson Paradox". This correlation, before Keynes, puzzled other important economists such as Wicksell and Fisher, who attempted,...

Two interpretations have been advanced to account for persistent German current account surpluses that translate into equally persistent deficits of countries in the European periphery. According to the first, the German surplus is the expression of a 'virtuous' savings behaviour, to be extended...