The U.S. as a Debtor Nation
An inflow of foreign capital has accompanied the persistent string of U.S. current-account deficits since 1982. Essentially, we have financed a surfeit of imports by issuing financial assets that represent a foreign-held claim on future U.S. output. As a consequence, we became a net debtor nation in 1988 when foreign-owned assets in the U.S. began to exceed U.S.-owned assets in the rest of the world.
Suggested citation: "The U.S. as a Debtor Nation," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-09, pp. 19, 09.01.1999.