Journal Article
Reducing the U.S. deficit by recycling capital inflows
Abstract: The United States can simply recycle the financial capital inflows from China and re-export them back to China in the form of FDI. In so doing, the United States gains a substantially larger rate of return from FDI than China does from owning U.S. government bonds.
Keywords: Deficit financing; Balance of payments;
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File(s): File format is application/pdf http://research.stlouisfed.org/publications/es/12/ES_2012-07-06.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Economic Synopses
Publication Date: 2012
Order Number: 17