Net Foreign Assets and International Adjustment in the United States, Japan and the Federal Republic of Germany.

This paper examines external adjustment in the U.S., Japan and Germany from the perspective of net foreign asset positions. It asks two questions: What are, in the long run, the determinants of net foreign asset equilibrium? and: What are, in the short run, the adjustment mechanisms sustaining that...

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Bibliografische gegevens
Coauteur: International Monetary Fund
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 1989.
Reeks:IMF Working Papers; Working Paper ; No. 1989/022
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:This paper examines external adjustment in the U.S., Japan and Germany from the perspective of net foreign asset positions. It asks two questions: What are, in the long run, the determinants of net foreign asset equilibrium? and: What are, in the short run, the adjustment mechanisms sustaining that equilibrium? An analysis of postwar data produces two insights. First, using a cointegration approach, the existence of long-run net foreign asset equilibrium can be identified; in each of the G-3 countries, it is a function of demographic variables and public debt. Second, deviations from the long-run equilibrium give rise to disequilibrium feedback through domestic absorption and through other channels.
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Fysieke beschrijving:1 online resource (60 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
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