The Importance of the International Investment Position

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 … Continue reading The Importance of the International Investment Position