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

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.

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Year of publication:	2003
Authors:	Tille, Cedric
Published in:	Current Issues in Economics and Finance. - Federal Reserve Bank of New York. - Vol. 9.2003, Jan, 1
Publisher:	Federal Reserve Bank of New York
Subject:	Debts \| External \| Foreign exchange \| Capital movements \| Deficit financing

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Extent:	text/html application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005387202