Net Foreign Assets and International Adjustment: The United States, Japan, and Germany

26 Pages Posted: 15 Feb 2006

See all articles by Paul R. Masson

Paul R. Masson

International Monetary Fund (IMF) - Research Department; The Brookings Institution

Jeroen Kremers

affiliation not provided to SSRN

Jocelyn Horne

affiliation not provided to SSRN

Date Written: April 1993

Abstract

This paper examines external adjustment in the United States, Japan and Germany from the perspective of net foreign asset positions. It asks two questions: What are, in the long run, the determinants of net foreign asset equilibrium? and: What are, in the short run, some of the adjustment mechanisms sustaining that equilibrium? An analysis of post-war data produces two insights. First, using a cointegration approach, the existence of long-run net foreign asset equilibrium can be identified: it is a function of demographic variables and public debt. Second, deviations from long-run equilibrium give rise to feedback through different components of domestic absorption in the three countries.

JEL Classification: F32, F34

Suggested Citation

Masson, Paul R. and Kremers, Jeroen and Horne, Jocelyn, Net Foreign Assets and International Adjustment: The United States, Japan, and Germany (April 1993). IMF Working Paper No. 93/33, Available at SSRN: https://ssrn.com/abstract=883479

Paul R. Masson (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

The Brookings Institution ( email )

1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States
202-797-6278 (Phone)
202-797-2968 (Fax)

Jeroen Kremers

affiliation not provided to SSRN

No Address Available

Jocelyn Horne

affiliation not provided to SSRN

No Address Available

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
154
Abstract Views
959
rank
239,497
PlumX Metrics