The impact of exchange rate movements on U.S. foreign debt

Cédric Tille

Current Issues in Economics and Finance, 2003, vol. 9, issue Jan

Abstract: In 2001, the United States' net debt to the rest of the world jumped to $2.3 trillion, a level double that recorded in 1999. Much of the increase reflects the new borrowing undertaken by the country to finance its mounting current account deficit. A third of the change, however, can be traced to a simple accounting effect--the impact of a rising dollar on the value of U.S. assets held abroad.

Keywords: Deficit financing; Debts, External; Foreign exchange; Capital movements (search for similar items in EconPapers)
Date: 2003
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