by Summary:
The U.S. has long held an external balance sheet that is comprised of foreign equity assets, mainly in the form of direct investment (DI), and liabilities held abroad primarily in the form of debt, including U.S. Treasury securities. This composition is known “long equity, short debt.” Pierre-Olivier Gourinchas of UC-Berkeley and Hélène Rey of the London Business School claim that this allocation has allowed the U.S. to serve as the “world’s venture capitalist,” issuing short-term debt in order to invest in high-yield assets. But the U.S. direct investment position has changed from a surplus to a deficit, with uncertain consequences for the international monetary system. There is more than one reason for the change.... Angry BearThe Change in the U.S. Direct Investment Position Joseph
Topics:
Mike Norman considers the following as important: capital account, current account, FDI, foreign direct investment, global economy, Net International Investment Position, US economy
This could be interesting, too:
The U.S. has long held an external balance sheet that is comprised of foreign equity assets, mainly in the form of direct investment (DI), and liabilities held abroad primarily in the form of debt, including U.S. Treasury securities. This composition is known “long equity, short debt.” Pierre-Olivier Gourinchas of UC-Berkeley and Hélène Rey of the London Business School claim that this allocation has allowed the U.S. to serve as the “world’s venture capitalist,” issuing short-term debt in order to invest in high-yield assets. But the U.S. direct investment position has changed from a surplus to a deficit, with uncertain consequences for the international monetary system. There is more than one reason for the change.... Angry BearThe Change in the U.S. Direct Investment Position Joseph
Topics:
Mike Norman considers the following as important: capital account, current account, FDI, foreign direct investment, global economy, Net International Investment Position, US economy
This could be interesting, too:
Robert Waldmann writes The US economy is the envy of the first world
Joel Eissenberg writes The truth about immigration
Angry Bear writes The U.S. Economy Reaches Superstar Status
Dan Crawford writes Risk and FDI
The U.S. has long held an external balance sheet that is comprised of foreign equity assets, mainly in the form of direct investment (DI), and liabilities held abroad primarily in the form of debt, including U.S. Treasury securities. This composition is known “long equity, short debt.” Pierre-Olivier Gourinchas of UC-Berkeley and Hélène Rey of the London Business School claim that this allocation has allowed the U.S. to serve as the “world’s venture capitalist,” issuing short-term debt in order to invest in high-yield assets. But the U.S. direct investment position has changed from a surplus to a deficit, with uncertain consequences for the international monetary system.
There is more than one reason for the change....Angry Bear
The Change in the U.S. Direct Investment Position
Joseph P. Joyce | Professor of Economics at Wellesley College, where he holds the M. Margaret Ball Chair of International Relations. He served as the first Faculty Director of the Madeleine Korbel Albright Institute for Global Affairs.