Capital account
MacroDefinition
Net flow of capital INTO a country (inflows minus outflows). For accounting reasons, capital account approximately mirrors the current account: countries with current account deficits have capital account surpluses (foreigners buy more US assets than Americans buy abroad).
The US capital account surplus = the reason mortgage rates and Treasury yields are lower than they otherwise would be. China and Japan accumulating $1T+ of Treasuries is the clearest example.
The US capital account surplus = the reason mortgage rates and Treasury yields are lower than they otherwise would be. China and Japan accumulating $1T+ of Treasuries is the clearest example.
Related tool
Open the global tool on Arsenal.finance →