A Global View of the U.S. Investment Position

 
Author/Editor: Swiston, Andrew
 
Publication Date: September 01, 2005
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper analyzes various indicators of the U.S. international investment position from a portfolio perspective. The 1990s saw a decline in home bias, which, coupled with rapid financial deepening, led to a large increase in gross international investment holdings. The home bias of non-U.S. investors declined more rapidly than that of U.S. investors, allowing the United States to finance a rising stock of net liabilities, even as foreign portfolios remained marketweight or underweight U.S. assets in each investment category. However, a comparison to other countries reveals that the U.S. net international investment position (NIIP) is large given the size of the economy and is deteriorating, especially through a growing negative net debt securities position.
 
Series: Working Paper No. 05/181
Subject(s): Foreign investment | United States | External debt

Author's Keyword(s): International investment position | home bias | foreign investment
 
English
Publication Date: September 01, 2005
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2005181 Pages: 24
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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