Balance Quote by Gunnar Myrdal
“The short-term international capital market is shrunken and erratic, and cannot be relied upon to cushion the effects of tendencies to disequilibrium in the balance of payments.”
About This Quote
The short‑term international capital market is volatile and unreliable, making it unsuitable for stabilizing balance‑of‑payments imbalances.
In simple terms: Short‑term capital markets are unstable and can't smooth payment imbalances.
Seek more stable financial mechanisms.
Themes
Mood
Type
When to use this quote
- investment strategies
- government interventions
- currency management
Key Concepts
Questions to Reflect On
- How can economies reduce reliance on volatile capital flows?
- What alternatives exist for payment balance stability?
Market instability can exacerbate crises.