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- Title
The Valuation of Hidden Assets in Foreign Transactions: Why "Dark Matter" Matters.
- Authors
Hausmann, Ricardo; Sturzenegger, Federico
- Abstract
This paper clarifies how the valuation of hidden assets--what we call "dark matter"--changes our assessment of the U.S. external imbalance. Dark matter assets are defined as the capitalized value of the return privilege obtained by U.S. assets. Because this return privilege has been steady over recent decades, it is likely to persist in the future or even to increase, as it becomes leveraged by an increasingly globalized world. Once this is included in future projections of U.S. current accounts, the U.S. external position looks much more balanced than depicted in official statistics.
- Subjects
ASSETS (Accounting); BALANCE of payments; CAPITAL movements; GLOBALIZATION; UNITED States economy, 2001-2009
- Publication
Business Economics, 2007, Vol 42, Issue 1, p28
- ISSN
0007-666X
- Publication type
Article
- DOI
10.2145/20070103