The International Investment Position: Latest Estimates, and What’s Missing
Menzie Chinn (July 6th, 2008) Writes:
The BEA released the end-2007 International Investment Position data on June 27.
Several observations:
As in recent years, the NIIP to GDP ratio continues to deteriorate.
However, the NIIP to GDP ratio as of end-2007 is improved relative to the originally reported end-2006 NIIP/GDP ratio.
In the last year, the dollar change in the NIIP deviates substantially (i.e., is more positive) than the corresponding current account reported on a NIPA basis. This repeats the pattern from the previous five years.
Interestingly, 2005 stands out by far as an outlier, wherein the the NIIP improves while the CA is in substantial deficit.
There appears to be a measurable correlation between dollar depreciation against other major currencies and the deviation between change in NIIP and CA.
The first two observations are illustrated in Figure 1.
Figure 1: Net international investment position to GDP ratio, 2007 release (blue), ...
Figure 1: Net international investment position to GDP ratio, 2007 release (blue), ...
Tags for this Post:
26 June, Bea, Correlation, Current Account, Depreciation, Deviates, Dollar Change, Economics, Figure 3, Gdp, Gdp Ratio, Gdp Release, International Investment Position, Investing Lessons, Moving Average, Niip, Outlier, Position Data, Recessions, Rele, Scatterplot, Vertical Axis
26 June, Bea, Correlation, Current Account, Depreciation, Deviates, Dollar Change, Economics, Figure 3, Gdp, Gdp Ratio, Gdp Release, International Investment Position, Investing Lessons, Moving Average, Niip, Outlier, Position Data, Recessions, Rele, Scatterplot, Vertical Axis


![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
Figure 1: First ...
Figure 1: Log payroll employment (blue) and log industrial production (red), both normalized to 0 in 2007M12. Green shaded area is conjectured recession dates. Source: Federal Reserve Board via St. Louis Fed FRED II, accessed 8 June 2008.
Figure 1: Log personal income less transfers in Ch.2000$ (blue) and log manufacturing and trade sales in Ch.2000$ (red), both normalized to 0 in 2007M12. Real personal income calculated by subtracting ... 