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The Impact of Exchange Rate Movements on U.S. Foreign Debt

8 Pages Posted: 14 Mar 2005  

Cédric Tille

Graduate Institute of International and Development Studies (HEI)

Abstract

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.

Keywords: net international investment position, current account, exchange rate movements

JEL Classification: F31, F36, F32

Suggested Citation

Tille, Cédric, The Impact of Exchange Rate Movements on U.S. Foreign Debt. Current Issues in Economics and Finance, Vol. 9, No. 1, January 2003. Available at SSRN: https://ssrn.com/abstract=682609

Cedric Tille (Contact Author)

Graduate Institute of International and Development Studies (HEI) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

HOME PAGE: http://sites.google.com/site/cedrictilleheid/home

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