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.