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

8 Pages Posted: 14 Mar 2005

See all articles by Cédric Tille

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, Cedric, 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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