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  • About
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    • Economic Growth and the Business Cycle
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Tag Archives: net international investment position

The Importance of the International Investment Position

Trade and Balance of PaymentsBy Stuart AllsoppDecember 16, 2018Leave a comment

Intro: Persistent current account deficits result in the build-up of net liabilities in the international investment account. NIIP deficits and surpluses tend to be self-reinforcing as the country earn less on its assets than it has to pay on its liabilities, resulting in an income account deficits. This in turn results in a further build-up…

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