{
  "title": "Where Did All the Borrowing Go? A Forensic Analysis of the U.S. External Position",
  "publication": "IMF Working Papers, February 1, 2008",
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  "summary": "The deterioration in the U.S. net external position in recent years has been much smaller than the extensive net borrowing associated with large current account deficits would have suggested.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Gian M Milesi-Ferretti, Philip R. Lane\n- Publication date: February 1, 2008\n- Core question: Why has the deterioration in the U.S. net external position been much smaller than the extensive net borrowing implied by large current account deficits?\n- Scope: Examines the sources of discrepancies between net borrowing and accumulation of net liabilities for the U.S. economy over the past 25 years.\n- Pages: 35\n- Series: Working Paper No. 2008/028\n- Volume: 2008\n- Issue: 028\n- DOI: https://doi.org/10.5089/9781451868906.001\n- Stock No: WPIEA2008028\n- ISBN: 9781451868906\n- ISSN: 1018-5941"
    },
    {
      "heading": "Key findings and quantified contributions",
      "content": "- Net capital gains on the U.S. external portfolio play a major role in explaining why the U.S. net external position deteriorated much less than net borrowing would suggest.\n- \"Residual adjustments\" are identified and quantified as an important component that helps reconcile net borrowing with changes in measured net liabilities.\n- The analysis covers a 25 year period and attributes the discrepancy primarily to:\n  - Net capital gains on U.S. external assets and liabilities.\n  - Residual adjustments that offset measured financial flows and valuation changes."
    },
    {
      "heading": "Analysis of residual adjustments",
      "content": "- The paper discusses whether residual adjustments originate from:\n  - Measurement errors in external assets and liabilities.\n  - Measurement errors in financial flows.\n  - Measurement errors in capital gains.\n- It explores implications of each conjecture for:\n  - The U.S. financial account.\n  - The U.S. external position."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Asset valuation, External position, Foreign assets, Foreign direct investment, Stocks\n- Keywords: exchange rate, market value, net capital, rate of return, WP"
    },
    {
      "heading": "Implications highlighted",
      "content": "- If net capital gains are the dominant explanation, changes in valuation and rates of return are central to understanding the external position dynamics.\n- If residual adjustments reflect measurement errors in stocks, flows, or valuation, then data and statistical practices for the U.S. external accounts may require review to improve consistency between borrowing and balance-sheet outcomes.\n- The paper's conclusions bear directly on interpretation of the U.S. financial account and on assessments of external vulnerability.\n\nIMF Working Paper. Gian M Milesi-Ferretti and Philip R. Lane, \"Where Did All the Borrowing Go? A Forensic Analysis of the U.S. External Position\", Working Paper No. 2008/028, February 1, 2008.\n\n---\n\n Content in this bundle\n\n- wp0828\n  - wp0828 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0828 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/where-did-all-the-borrowing-go-a-forensic-analysis-of-the-u-s-21618"
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    "Authors: Gian M Milesi-Ferretti, Philip R. Lane",
    "Published: February 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451868906.001",
    "Authors: Gian M Milesi-Ferretti, Philip R. Lane",
    "Publication date: February 1, 2008",
    "Core question: Why has the deterioration in the U.S. net external position been much smaller than the extensive net borrowing implied by large current account deficits?",
    "Scope: Examines the sources of discrepancies between net borrowing and accumulation of net liabilities for the U.S. economy over the past 25 years.",
    "Pages: 35",
    "Series: Working Paper No. 2008/028",
    "Volume: 2008",
    "Issue: 028",
    "DOI: https://doi.org/10.5089/9781451868906.001",
    "Stock No: WPIEA2008028",
    "ISBN: 9781451868906",
    "ISSN: 1018-5941",
    "Net capital gains on the U.S. external portfolio play a major role in explaining why the U.S. net external position deteriorated much less than net borrowing would suggest.",
    "\"Residual adjustments\" are identified and quantified as an important component that helps reconcile net borrowing with changes in measured net liabilities.",
    "The analysis covers a 25 year period and attributes the discrepancy primarily to:",
    "The paper discusses whether residual adjustments originate from:",
    "It explores implications of each conjecture for:",
    "Subject: Asset valuation, External position, Foreign assets, Foreign direct investment, Stocks",
    "Keywords: exchange rate, market value, net capital, rate of return, WP",
    "If net capital gains are the dominant explanation, changes in valuation and rates of return are central to understanding the external position dynamics.",
    "If residual adjustments reflect measurement errors in stocks, flows, or valuation, then data and statistical practices for the U.S. external accounts may require review to improve consistency between borrowing and balance-sheet outcomes.",
    "The paper's conclusions bear directly on interpretation of the U.S. financial account and on assessments of external vulnerability.",
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