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

Journal Issue

Volume/Issue:: 1993/33
Series:: IMF Working Papers
Author(s):: Jocelyn Horne, Paul Masson, and Jeroen Kremers
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: April 1993
DOI:: http://dx.doi.org/10.5089/9781451979244.001
ISBN:: 9781451979244
ISSN:: 1018-5941
Page:: 26

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.

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

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

Article

Net Foreign Assets and International Adjustment

Author(s):: Jocelyn Horne, Paul Masson, and Jeroen Kremers
Published Date:: April 1993

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

Net Foreign Assets and International Adjustment

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