Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287755 
Year of Publication: 
2024
Series/Report no.: 
Kiel Working Paper No. 2264
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
U.S. equity outperformance and sustained dollar appreciation have led to large valuation gains for the rest of the world on the U.S. external position. The author constructs their global distribution, carefully accounting for the role of tax havens. Valuation gains are concentrated and large in developed countries, while developing countries have been mostly bypassed. To assess the welfare implications of these capital gains, the author adopts a sufficient statistics approach. In contrast to the large wealth changes, most countries so far did not benefit much in welfare terms. This is because they did not rebalance their portfolios and realize their gains, while they were further hurt by rising import prices from the strong dollar.
Subjects: 
Foreign Assets
Global Imbalances
Valuation Effects
JEL: 
F21
F32
F40
G15
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.