Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of New York
Current Issues in Economics and Finance
The changing nature of the U.S. balance of payments
Rebecca Hellerstein
Cédric Tille

Earnings on cross-border investments figure only marginally in net estimates of the U.S. current account, but they represent an increasingly large share of gross flows between the United States and other nations. Because these earnings fluctuate much more sharply than trade flows, they can be expected to create permanently higher current account volatility. Such increased volatility is not necessarily grounds for concern, however; it reflects an international sharing of risk that provides a buffer against domestic economic uncertainty.

Download Full text
Download Full text
Cite this item
Rebecca Hellerstein & Cédric Tille, "The changing nature of the U.S. balance of payments" , Federal Reserve Bank of New York, Current Issues in Economics and Finance, volume 14, issue Jun, 2008.
More from this series
JEL Classification:
Subject headings:
Keywords: Balance of payments ; International economic relations ; Investments; Foreign
For corrections, contact Amy Farber ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal