The Implications of Dark Matter for Assessing the US External Imbalance

Ricardo Hausmann and Federico Sturzenegger

No 137, CID Working Papers from Center for International Development at Harvard University

Abstract: This paper clarifies how dark matter changes our assessment of the US external imbalance. Dark matter assets are defined as the capitalized value of the return privilege obtained by US assets. Because this return privilege has been steady over recent decades, it is likely to persist in the future or even to increase, as it becomes leveraged by an increasingly globalized world. Once this is included in future projections of US current accounts, the US external position looks much more balanced than depicted in official statistics.

Keywords: The; Implications; of; Dark; Matter; for; Assessing; the; US; External; Imbalance (search for similar items in EconPapers)
JEL-codes: F32 F34 F36 F41 (search for similar items in EconPapers)
Date: 2006-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cid:wpfacu:137

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