## Figure 1.11. United States: A Retrospective on Economic versus Financial Risk Taking

## Source details

**Canonical URL:** [Figure 1.11. United States: A Retrospective on Economic versus Financial Risk Taking](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-11.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-11.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-11.pdf.json)

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### Chart description
- Balance Sheet Evolution of Nonfinancial Corporate Sector (Percent of assets)
- Vertical axis markers as shown: –15, –10, –5, 0, 5, 10, 15
- Horizontal axis markers as shown: 198084889296200004081216
- Series and labels shown on the chart:
  - Uses of financing
  - Sources of financing
  - Economic risk taking
  - Financial risk taking, including net payouts
  - Net payouts (dividends and share buybacks)
  - Capital expenditure
  - Operating cash
  - Increase in debt, FDI, and other liabilities
- Event annotations on the timeline:
  - 1986 tax cut
  - 2004 repatriation
  - Purchases of financial assets and M&A
- Shaded areas indicate economic recessions.

### Key findings and interpretation
- Past corporate tax initiatives have been associated with a limited increase in economic risk taking.
- The chart decomposes changes in nonfinancial corporate sector balance sheets into uses and sources of financing and isolates economic versus financial risk taking.
- Net payouts (dividends and share buybacks), purchases of financial assets and M&A, and increases in debt, FDI, and other liabilities are shown as important components of financial risk taking.
- Capital expenditure and operating cash are shown as components of economic risk taking.

### Data and metadata notes
- Sources: Federal Reserve; and IMF staff estimates.
- Note: FDI = foreign direct investment; M&A = mergers and acquisitions.

*Source: figure1-11 (figure1-11.pdf).*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-11.pdf_