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Economic Synopses

Short essays on the economic issues of the day written for a generally informed readership.

2012, No. 17

Reducing the U.S. Deficit by Recycling Capital Inflows

The United States can simply recycle the financial capital inflows from China and re-export them back to China in the form of FDI. In so doing, the United States gains a substantially larger rate of return from FDI than China does from owning U.S. government bonds.

 


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