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NBER: Recent Financial Times article
Subject: Recent Financial Times article
From: Martin Feldstein (msfeldst@nber.org)
Date: Thu Jan 12 2006 - 02:55:23 EST
In a recent article in the Financial Times
(www.nber.org/feldstein/ft011006.pdf) I discuss the misleading nature
of the Treasury's Int'l Capital (TIC) releases. The press and many
financial writers interpret them to show that we attract more capital
from the rest of the world than we need to finance our current
account deficits and that that money is coming from private
investors. I explain why neither of these is correct. The
optimistic misinterpretation may be one reason for the dollars
continued strength.
Marty
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