A Global Perspectiveon External Positions

Gian Maria Milesi-Ferretti () and Philip Lane

No 2005/161, IMF Working Papers from International Monetary Fund

Abstract: This paper highlights the increased dispersion in net external positions in recent years, particularly among industrial countries. It provides a simple accounting framework that disentangles the factors driving the accumulation of external assets and liabilities (such as trade imbalances, investment income flows, and capital gains) for major external creditors and debtors. It also examines the factors driving the foreign asset portfolio of international investors, with a special focus on the weight of U.S. liabilities in the rest of the world's stock of external assets. Finally, it relates the empirical evidence to the current debate about the roles of portfolio balance effects and exchange rate adjustment in shaping the external adjustment process.

Keywords: WP; exchange rate; return; trade deficit; U.S. dollar; Financial integration; capital flows; external assets and liabilities; capital flow; portfolio equity; current account; return differential; returns influence; rates of return on asset; asset category; asset trade; portfolio equity instrument; return premium; FDI assets; equity position; Foreign assets; Stocks; Asset prices; Global; Asia and Pacific; Middle East (search for similar items in EconPapers)
Pages: 44
Date: 2005-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104)

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http://www.imf.org/external/pubs/cat/longres.aspx?sk=18418 (application/pdf)

Related works:
Chapter: A Global Perspective on External Positions (2007)
Working Paper: A Global Perspective on External Positions (2005)
Working Paper: A Global Perspective on External Positions (2005)
Working Paper: A Global Perspective on External Positions (2005)
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