The end of privilege: a reexamination of the net foreign asset position of the United States

The U.S. net foreign asset position has declined sharply since 2007 and is currently negative 65 percent of U.S. GDP. This deterioration primarily reflects a U.S.-specific rise in corporate asset values that has inflated the value of U.S. equity liabilities to the rest of the world. To interpret these trends we develop an international macro finance model of flows, stocks, asset valuations, the current account, and the net foreign asset position. We find that the welfare impact of rising asset values for a representative U.S. household has been quite negative given extensive foreign ownership of U.S. corporate equity.

Donderdag 16 mei 2024, 16:30 - 18:00
National Bank of Belgium, KU Leuven, UAntwerpen, UCLouvain, UGent, ULB, ULiège, UNamur and VUB
Fabrizio Perri (Federal Reserve Bank of Minneapolis)
Conference Room Lamfalussy, entrance: Boulevard de Berlaimont 14, 1000 Brussels & Microsoft Teams meeting