Central Bank of Nigeria
USA. United States of America, Debtor Country, Debt
The author's focus in this paper is the analysis of the implications of increased net debt claims on the United States. In his opinion, while net inflow of foreign investment is welcome, there is the fear that excessive net claims on a country like U.S.A. may constitute a problem in the long-run. The author's concern centres on the probable adverse consequences of the growing status of U.S.A. as a net debtor nation and the implication for future generations of Americans in terms of standard of living and debt service burden. It is the author's view that this might also lead to very high inflation rates, like those experienced recently by some debtor nations. The paper therefore seeks to analyse the validity of these concerns by first discussing the economic factors that generated large capital inflows into the country and evaluating the prospects for reversing this net-debtor position. This it does by weighing the role economic policies can play in the process.
CBN Economic and Financial Review
Nwaoba, Peter I. (1991). Stephen A. Meyer: "The U.S. As a Debtor Country: Causes, Prospects and Policy Implications" Business Review, Federal Reserve Bank of Philadelphia, November/December, 1989 (13pp). CBN Economic and Financial Review. 29(3), 304-305.