1) Is there a net flow loanable funds out of the US or into the US? Explain
ble 1.1. U.S. International Transactions Millions of dollars elease Date: December 19, 2017- Next Release Date: March 21, 2018 Seasonally adjusted 2016 Seasonally adjusted ine 2017 IV 8 Capital transfer payments and other debits 58 0 0 n.a. Financial account Net U.S. acquisition of financial assets excluding 9 financial derivatives (net increase in assets / 39,498 341,713 51,184 84,504 326,126 344,851 337,900 financial outflow (+)) 0 Direct investment assets 1 Portfolio investment assets 2 Other investment assets 3 Reserve assets 71,637 95,913 100,743 43,289 117,457 90,601 76,694 64,073 148,656 30,565 -13,379 140,446 186,482 175,629 33,126 96,955 -20,636 -115,864 68,464 67,618 85,637 -1,191 189 1,642 1,450 -241 150 61 Net U.S. incurrence of liabilities excluding 4 financial derivatives (net increase in liabilities 137,808 387,164 financial inflow (+)) 5 Direct investment liabilities 6 Portfolio investment liabilities 7 Other investment liabilities 8 233,155 6,734 1307 468,603 462,131 143,954 186,316 131,547 17,597 97,250 91,100 95,831 45,760 3,516 217,189 62,422 164,522 291,264 284,032 39,614 197,332 -115,582 96,753 155,535 86,238 82,267 12,947 3,177 6,676 6,983 2,320 9,306 18,600 Financial derivatives other than reserves, net transactions Statistical discrepancy 9 Statistical discrepancy a Of which: Seasonal adjustment discrepancy 33,905 65,925 65,024 39,253 20,033 9,952 -29,933 9,659 13,726 28,455 32,522 8,101 16,272 30470
1) Financial inflows are 462,131; whereas financial outflows are 337,900. Thus there is a net flow of loanable funds to the US.
2) This shows that direct investment assets are less transacted compared to portfolio invetment assets in both the cases of funds outflow as well as inflow. This means that payments are more directed towards purchases of stakes in already existing production units (financial securties) rather than installation of production units.
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