This paper studies net foreign assets and the differential returns between gross foreign assets and liabilities for a … imparting a drift to net foreign assets over the long-run, whereas the latter dominate short-term dynamics. Excess returns on … net foreign assets of the United States are indeed exorbitant from a global perspective, only occasionally matched by …

foreign assets (NFA) satisfy an error-correction specification with a residual integrated of any finite order. We test this …Theory predicts that a nation's stochastic intertemporal budget constraint is satisfied if net exports (NX) and net …

risk. These models generate an optimal level of net foreign assets ranging from 29 to 37 percent of GDP. For comparison …

debt dynamics, is crucial for the dynamics of net foreign assets. We show that under a counter-cyclical scal rule with low … policy. We derive the dynamic and cyclical properties of scal decit feedback rules and their implications for net foreign … assets dynamics. Our results imply that the degree of \scal discipline", i.e. the extent to which the scal rule responds to …