Ute Volz

Global Capital Flows

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The global credit crunch has caused some to wonder whether or not the U.S. will be able to fulfill its account obligations to the rest of the world. However, the U.S. continues to have positive investment income. DAAD/AICGS Fellow Ute Volz discusses how this is possible and looks at the international investment positions (IIP) of the U.S. and Germany, focusing on the apparent ability of the United States to generate income out of a debtor position and why Germany is currently unable to do better with its IIP strategies.