International capital flows and debt dynamics [electronic resource] / prepared by Martin D.D. Evans.

By:

Evans, Martin D. D

Contributor(s):

International Monetary Fund. Research Department

Material type: Text

text

Media type:

computer

Carrier type:

online resource

ISBN:

1475581211
9781475581218

Subject(s):

Genre/Form:

Electronic books.

DDC classification:

332.152 23

LOC classification:

HG3881.5.I58 W67 No. 12/175eb

Online resources:

EBSCOhost

Summary: This paper presents a new model for studying international capital flows and debt dynamics that emphasizes the role played by expectations concerning future trade flows and returns. I use the model to estimate the drivers of the U.S. external position and capital flows between 1973 and 2008. The estimates show that most of the secular rise in U.S. international indebtedness is attributable to growing optimism about future returns on U.S. holdings of foreign equity and FDI assets. They also show that the transformation of world savings into risky assets by the U.S. had little effect on its external position, but the expected future real depreciation of the dollar allowed the U.S. to sustain a higher level of international debt after the 1990s.

Holdings ( 1 )
Title notes ( 5 )

Holdings
Item type	Current library	Collection	Call number	Status	Date due	Barcode	Item holds
eBook	e-Library	EBSCO Business		Available

Total holds: 0

Title from PDF title page (IMF Web site, viewed Jul. 17, 2012).

This paper presents a new model for studying international capital flows and debt dynamics that emphasizes the role played by expectations concerning future trade flows and returns. I use the model to estimate the drivers of the U.S. external position and capital flows between 1973 and 2008. The estimates show that most of the secular rise in U.S. international indebtedness is attributable to growing optimism about future returns on U.S. holdings of foreign equity and FDI assets. They also show that the transformation of world savings into risky assets by the U.S. had little effect on its external position, but the expected future real depreciation of the dollar allowed the U.S. to sustain a higher level of international debt after the 1990s.

Includes bibliographical references.

"Research."

"July 2012."