Recent research has examined the evolution of the NIIP and has found that current account deficits and the associated net financial inflows are not the only factors influencing it; rather, research finds that changes in asset prices and especially in exchange rates have played an important role...

With the price of oil in world energy markets having nearly quadrupled over the last four years, it is little surprise that U.S. import prices have soared. One concern about these higher import prices relates to their implications for the U.S. trade balance, which turned to a deficit in 1992 and...

A narrowing of the U.S. current account deficit through exchange rate movements is likely to entail a substantial depreciation of the dollar. We assess how the adjustment is affected by the high degree of international financial integration, with exchange rate movements having a direct valuation...

A narrowing of the U.S. current account deficit through exchange rate movements is likely to entail a substantial depreciation of the dollar, as stressed in the widely cited contribution by Obstfeld and Rogoff (2005). We assess how the adjustment is affected by the high degree of international...