Social and Behavioral Sciences Commons^™

Three Essays On The Effects Of Reverting Capital Flows On U.S. Financial Markets, Rahames A. Lizardo

Theses and Dissertations - UTB/UTPA

The United States has been running, for a long time now, an-increasing current account deficit. In fact, the U.S. has a current account deficit with most countries in the world. The implication is that Americans have been enjoying an ever-increasing standard of living by consuming way more than what they produce, not only manufactured goods, but also important commodities such as oil. In other words, a significant fraction of our prosperity is based on borrowing rather than increased production. These persistent deficits, which translate into additional indebtedness by the U.S. and an-ever increasing amount of dollars reserves by countries such …