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Savings, Investment, and Foreign Capital

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Proponents of the “new economy” laud our recent strong economic performance as evidence of a sustainable increase in the underlying growth potential of the U.S. Whether these gains ultimately prove permanent or transitory remains uncertain, but it is certain that substantial inflows of private foreign capital have encouraged them. Capital inflows are the necessary counterpart to our current-account deficit.

Suggested citation: "Savings, Investment, and Foreign Capital," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-06, pp. 19, 06.01.2000.

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