by Mark Thoma, University of Oregon (Department of Economics)

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The Most Attractive of Them All?

Posted on August 27, 2008

One explanation for the persistence of the current account deficit is that US assets are unusually attractive. Are they?:Are US assets special in the eyes of global investors?, by Steven B. Kamin, Vox EU: In principle, we would expect a mature industrial economy such as the US, with high incomes and large accumulated endowments of capital, to be running a current account surplus, exporting capital to much less developed regions of the world such as China or Malaysia. Not so.In practice, the US has been spending far more on imported goods and services than it earns, financing a shortfall of s...

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bernanke , budget , china , currencies , current account deficit , deficit , economy , euro , exchange rate , foreign exchange , gdp , interest rates , oil