A Global Perspectiveon External Positions
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Summary:
This paper highlights the increased dispersion in net external positions in recent years, particularly among industrial countries. It provides a simple accounting framework that disentangles the factors driving the accumulation of external assets and liabilities (such as trade imbalances, investment income flows, and capital gains) for major external creditors and debtors. It also examines the factors driving the foreign asset portfolio of international investors, with a special focus on the weight of U.S. liabilities in the rest of the world's stock of external assets. Finally, it relates the empirical evidence to the current debate about the roles of portfolio balance effects and exchange rate adjustment in shaping the external adjustment process.
Series:
Working Paper No. 2005/161
Subject:
Asset prices Balance of payments Capital flows External position Financial institutions Foreign assets Prices Stocks
English
Publication Date:
August 1, 2005
ISBN/ISSN:
9781451861808/1018-5941
Stock No:
WPIEA2005161
Pages:
44
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