Where did all the borrowing go? A forensic analysis of the U.S. external position

Philip Lane and Gian Maria Milesi-Ferretti ()

Journal of the Japanese and International Economies, 2009, vol. 23, issue 2, 177-199

Abstract: 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. This paper examines the sources of discrepancies between net borrowing and accumulation of net liabilities for the U.S. economy over the past 25 years. In particular, it highlights and quantifies the role played by net capital gains on the U.S. external portfolio and 'residual adjustments' in explaining this discrepancy. It discusses whether these 'residual adjustments' are likely to be originating from measurement errors in external assets and liabilities, financial flows, or capital gains, and explores the implications of these conjectures for the U.S. financial account and external position. J. Japanese Int. Economies 23 (2) (2009) 177-199.

Keywords: Financial; integration; Capital; flows; External; assets; and; liabilities (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0889-1583(08)00058-0
Full text for ScienceDirect subscribers only

Related works:
Chapter: Where Did All the Borrowing Go? A Forensic Analysis of the U.S. External Position (2009)
Working Paper: Where Did All The Borrowing Go? A Forensic Analysis of the U.S. External Position (2008)
Working Paper: Where Did All The Borrowing Go? A Forensic Analysis of the U.S. External Position (2008)
Working Paper: Where Did All the Borrowing Go? A Forensic Analysis of the U.S. External Position (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:23:y:2009:i:2:p:177-199

Access Statistics for this article

Journal of the Japanese and International Economies is currently edited by Takeo Hoshi

More articles in Journal of the Japanese and International Economies from Elsevier
Bibliographic data for series maintained by Catherine Liu ().