Reducing the U.S. deficit by recycling capital inflows

Yi Wen

Economic Synopses, 2012, No 17

Abstract: The United States can simply recycle the financial capital inflows from China and re-export them back to China in the form of FDI. In so doing, the United States gains a substantially larger rate of return from FDI than China does from owning U.S. government bonds.

Keywords: Deficit financing; Balance of payments (search for similar items in EconPapers)
Date: 2012
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