Cash that residents (domicilary; nationals) had to deposit interest-free in a special account at the Deutsche Bundesbank if they had taken out loans from non-residents. The amount was calculated as a percentage of the amount borrowed abroad. – This measure, applied in Germany between 1972 and 1974, was intended to ward off the inflow of foreign money, which would have led to an undesirable expansion of the money supply because of the Bundesbank’s convertibility obligation. – See carry trades, money, hot.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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