Asia's trade performance after the currency crisis

The Asian countries hit by the 1997-98 currency crisis experienced a sharp reversal of capital flows that forced their current account balances to move from deficit to surplus. This study of the trade flows of Indonesia, Malaysia, South Korea, and Thailand finds that steep declines in imports, measured in dollar terms, accounted for almost all of the improvements in current account balances. However, a fuller picture emerges when the authors analyze the trade flows according to the volume of goods being shipped and the prices of these goods. The analysis shows that several factors contributed to the current account adjustment: higher export volumes in response to increased foreign demand outside of Asia, lower dollar import prices in line with declining world export prices, and the collapse in import volumes due to sharp declines in domestic economic activity.Balance of trade ; International trade - Asia ; Asia

Viewing the current account deficit as a capital inflow

With the 1998 current account deficit approaching $225 billion, attention is again focusing on the deficit's impact on U.S. jobs. Although a high deficit does adversely affect employment in export- and import-competing industries, it also means that considerable foreign capital is flowing into the United States, supporting domestic investment spending that stimulates growth and creates jobs.Balance of trade ; Capital movements ; Capital investments ; Investments ; Employment (Economic theory)

Reserve accumulation: implications for global capital flows and financial markets

Many central banks-particularly those in Japan and the emerging Asian nations-have been building up their holdings of foreign currency assets. These holdings, known as foreign exchange reserves, may help countries stabilize their currencies, but they can also lead to investment losses for the central banks. The large share of dollar assets among reserve holdings has made foreign central banks important players in U.S. financial markets.Banks and banking, Central ; Bank reserves ; Banks and banking - Asia

Financial globalization and the U.S. current account deficit

Despite heavy borrowing in recent years, the United States has financed its large current account deficits without experiencing an unusual buildup in foreign investors' holdings of U.S. assets. A new analysis suggests that this somewhat surprising development is attributable largely to rapid financial globalization, with cross-border flows worldwide rising as fast as flows into the United States. However, it could be harder for the country to sustain large deficits on favorable terms if the current wave of globalization subsided or the rate at which U.S. investors buy foreign assets increased.

Recycling petrodollars

In recent years, oil-exporting countries have experienced windfall gains with the rise in the price of oil. A look at how oil exporters "recycle" their revenues reveals that roughly half of the petrodollar windfall has gone to purchase foreign goods, especially from Europe and China, while the remainder has been invested in foreign assets. Although it is difficult to determine where the funds are first invested, the evidence suggests that the bulk are ending up, directly or indirectly, in the United States.Petroleum industry and trade ; Investments, Foreign

The income implications of rising U.S. international liabilities

Although the United States has seen its net liabilities surge in recent years, its investment income balance has remained positive-largely because U.S. firms operating abroad earn a higher rate of return than do foreign firms operating here. The continuing buildup in liabilities, however, should soon push the U.S. income balance below zero. In that event, net income flows will begin to boost the nation's current account deficit instead of reducing it.Liabilities (Accounting) ; Balance of payments

Ultra-stable, low phase noise dielectric resonator stabilized oscillators for military and commercial systems

EPSD has designed, fabricated and tested, ultra-stable, low phase noise microwave dielectric resonator oscillators (DRO's) at S, X, Ku, and K-bands, for potential application to high dynamic range and low radar cross section target detection radar systems. The phase noise and the temperature stability surpass commercially available DROs. Low phase noise signals are critical for CW Doppler radars, at both very close-in and large offset frequencies from the carrier. The oscillators were built without any temperature compensation techniques and exhibited a temperature stability of 25 parts per million (ppm) over an extended temperature range. The oscillators are lightweight, small and low cost compared to BAW & SAW oscillators, and can impact commercial systems such as telecommunications, built-in-test equipment, cellular phone and satellite communications systems. The key to obtaining this performance was a high Q factor resonant structure (RS) and careful circuit design techniques. The high Q RS consists of a dielectric resonator (DR) supported by a low loss spacer inside a metal cavity. The S and the X-band resonant structures demonstrated loaded Q values of 20,300 and 12,700, respectively