Blogs

Follow the Money

Brad Setser tracks cross-border flows, with a bit of macroeconomics thrown in.

Latest Post

Subscribe to Blog Updates
Subscribe to Blog Updates

The U.S. Income Balance Puzzle

by Brad W. Setser and Michael Weilandt November 3, 2024

The long-standing surplus in the U.S. investment income account, often cited as evidence of  “exorbitant privilege,” is receding. It already goes away without the income from profit-shifting by U.S. multinationals.

Read More
China
Disaggregating the Fall in China's Current Account Surplus Since 2007
China's current account surplus is almost certainly about $100 billion larger than officially reported, and the falling current account surplus masks a persistent manufacturing surplus.
Blog Post by Brad W. Setser May 8, 2018 Follow the Money
China
The Rising Bilateral Deficit with China and the Negotiations Over China 2025
A short review of the March U.S. trade data and a lot of speculation about the arc of the Sino-American economic relationship in light of the non-negotiability of Made in China 2025.
Blog Post by Brad W. Setser May 3, 2018 Follow the Money
Taiwan
Can an Emerging Economy Get Into Financial Trouble by Holding Too Many Foreign Assets?
The strange case of Taiwan and its life insurance industry.
Blog Post by Brad W. Setser May 1, 2018 Follow the Money
  • Ireland
    Tax Avoidance and the Irish Balance of Payments
    At this point, profit shifting by multinational corporations doesn’t distort Ireland’s balance of payments; it constitutes Ireland’s balance of payments.
    Blog Post by Guest Blogger for Brad Setser April 25, 2018 Follow the Money
  • International Economic Policy
    Asia's Central Banks and Sovereign Funds Are Back
    East Asia (China, Japan, and the NIEs) ran a $600 billion current account surplus in 2017. "Official" (central bank and sovereign fund) outflows accounted for about half of that. Asia's foreign exchange market intervention isn't as overt as it once was, but also hasn't entirely gone away.
    Blog Post by Brad W. Setser April 24, 2018 Follow the Money