U.S. Current Account

An U.S. Current Account is a current account measure that is a U.S. national economic measure.

• Example(s):
  • 
• See: Valuation Effects, Net Foreign Assets, Reserve Currency, Global Currency.

---

---

References

2018

• (Wikipedia, 2018) ⇒ https://en.wikipedia.org/wiki/current_account#U Retrieved:2018-8-13.
  • Since 1989, the current account deficit of the US has been increasingly large, reaching close to 7% of the GDP in 2006. In 2011, it was the highest deficit in the world. New evidence, however, suggests that the US current account deficits are being mitigated by positive valuation effects. That is, the US assets overseas are gaining in value relative to the domestic assets held by foreign investors. The net foreign assets of the US are therefore not deteriorating one to one with the current account deficits. The most recent experience has reversed this positive valuation effect, however, with the US net foreign asset position deteriorating by more than two trillion dollars in 2008, down to less than $18 trillion, but has since risen to $25 trillion. This temporary decline was due primarily to the relative under-performance of domestic ownership of foreign assets (largely foreign equities) compared to foreign ownership of domestic assets (largely US treasuries and bonds).

---