Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities

Detalhes bibliográficos
Autor(a) principal: Godinho, Renato Martins
Data de Publicação: 2021
Outros Autores: Marçal, Emerson Fernandes, Mendonça, Diogo de Prince
Tipo de documento: Artigo
Idioma: por
Título da fonte: Economia Aplicada
Texto Completo: https://www.revistas.usp.br/ecoa/article/view/172350
Resumo: This paper analyses the behavior of the external accounts of the United States and Brazil from1970 to 2017, aiming to understand if the trajectory of the current account of the country is sustainable on a long-term basis. There is evidence of explosive behavior by US foreign assets and liabilities. If the country’s assets abroad continue to have a higher rate of return than the rate that remunerates its foreign liabilities, the country will be able to continue with a deficit in the trade balance while remaining solvent. As for Brazil, the evidence shows external solvency.
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spelling Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilitiesSustentabilidade da conta corrente dos EUA e do Brasil e o papel da diferença entre as taxas de retorno de ativos e passivos externostrade balancenet foreign assetssustainability of external accountsbalança comercialposição externa líquidasolvência externaThis paper analyses the behavior of the external accounts of the United States and Brazil from1970 to 2017, aiming to understand if the trajectory of the current account of the country is sustainable on a long-term basis. There is evidence of explosive behavior by US foreign assets and liabilities. If the country’s assets abroad continue to have a higher rate of return than the rate that remunerates its foreign liabilities, the country will be able to continue with a deficit in the trade balance while remaining solvent. As for Brazil, the evidence shows external solvency.Este trabalho analisa o comportamento das contas externas dos Estados Unidos e do Brasil em 1970-2017 para entender se a trajetória da conta corrente é sustentável no longo prazo. Há evidência de comportamento explosivo por parte dos ativos e passivos externos dos EUA. Se os ativos do país no exterior continuarem com uma taxa de retorno maior do que a taxa que remunera passivos externos, conseguirá prosseguir com uma Balança Comercial deficitária sem deixar de ser solvente. No caso brasileiro, a evidência é de solvência externa, mas sem diferença entre as taxas de retorno dos ativos e dos passivos externos.Universidade de São Paulo, FEA-RP/USP2021-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://www.revistas.usp.br/ecoa/article/view/17235010.11606/1980-5330/ea172350Economia Aplicada; Vol. 25 No. 2 (2021); 165-190Economia Aplicada; Vol. 25 Núm. 2 (2021); 165-190Economia Aplicada; v. 25 n. 2 (2021); 165-1901980-53301413-8050reponame:Economia Aplicadainstname:Universidade de São Paulo (USP)instacron:USPporhttps://www.revistas.usp.br/ecoa/article/view/172350/173895Copyright (c) 2021 Economia Aplicadahttp://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccessGodinho, Renato MartinsMarçal, Emerson FernandesMendonça, Diogo de Prince2021-07-16T22:04:17Zoai:revistas.usp.br:article/172350Revistahttps://www.revistas.usp.br/ecoaPUBhttps://www.revistas.usp.br/ecoa/oai||revecap@usp.br1980-53301413-8050opendoar:2023-09-13T12:17:15.375448Economia Aplicada - Universidade de São Paulo (USP)false
dc.title.none.fl_str_mv Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
Sustentabilidade da conta corrente dos EUA e do Brasil e o papel da diferença entre as taxas de retorno de ativos e passivos externos
title Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
spellingShingle Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
Godinho, Renato Martins
trade balance
net foreign assets
sustainability of external accounts
balança comercial
posição externa líquida
solvência externa
title_short Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
title_full Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
title_fullStr Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
title_full_unstemmed Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
title_sort Sustainability of the current account of the USA and Brazil and the role of the difference between the rates of return on assets and external liabilities
author Godinho, Renato Martins
author_facet Godinho, Renato Martins
Marçal, Emerson Fernandes
Mendonça, Diogo de Prince
author_role author
author2 Marçal, Emerson Fernandes
Mendonça, Diogo de Prince
author2_role author
author
dc.contributor.author.fl_str_mv Godinho, Renato Martins
Marçal, Emerson Fernandes
Mendonça, Diogo de Prince
dc.subject.por.fl_str_mv trade balance
net foreign assets
sustainability of external accounts
balança comercial
posição externa líquida
solvência externa
topic trade balance
net foreign assets
sustainability of external accounts
balança comercial
posição externa líquida
solvência externa
description This paper analyses the behavior of the external accounts of the United States and Brazil from1970 to 2017, aiming to understand if the trajectory of the current account of the country is sustainable on a long-term basis. There is evidence of explosive behavior by US foreign assets and liabilities. If the country’s assets abroad continue to have a higher rate of return than the rate that remunerates its foreign liabilities, the country will be able to continue with a deficit in the trade balance while remaining solvent. As for Brazil, the evidence shows external solvency.
publishDate 2021
dc.date.none.fl_str_mv 2021-06-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://www.revistas.usp.br/ecoa/article/view/172350
10.11606/1980-5330/ea172350
url https://www.revistas.usp.br/ecoa/article/view/172350
identifier_str_mv 10.11606/1980-5330/ea172350
dc.language.iso.fl_str_mv por
language por
dc.relation.none.fl_str_mv https://www.revistas.usp.br/ecoa/article/view/172350/173895
dc.rights.driver.fl_str_mv Copyright (c) 2021 Economia Aplicada
http://creativecommons.org/licenses/by-nc/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2021 Economia Aplicada
http://creativecommons.org/licenses/by-nc/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade de São Paulo, FEA-RP/USP
publisher.none.fl_str_mv Universidade de São Paulo, FEA-RP/USP
dc.source.none.fl_str_mv Economia Aplicada; Vol. 25 No. 2 (2021); 165-190
Economia Aplicada; Vol. 25 Núm. 2 (2021); 165-190
Economia Aplicada; v. 25 n. 2 (2021); 165-190
1980-5330
1413-8050
reponame:Economia Aplicada
instname:Universidade de São Paulo (USP)
instacron:USP
instname_str Universidade de São Paulo (USP)
instacron_str USP
institution USP
reponame_str Economia Aplicada
collection Economia Aplicada
repository.name.fl_str_mv Economia Aplicada - Universidade de São Paulo (USP)
repository.mail.fl_str_mv ||revecap@usp.br
_version_ 1800221696011010048

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