A Global Perspectiveon External Positions

Author/Editor:

Gian M Milesi-Ferretti ; Philip R. Lane

Publication Date:

August 1, 2005

Electronic Access:

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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 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. 05/161

Subject:

English

Publication Date:

August 1, 2005

ISBN/ISSN:

9781451861808/1018-5941

Stock No:

WPIEA2005161

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

44

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