Free Cash, the Current Account and Bubble Creation

Autor:	Craig Medlen
Rok vydání:	2010
Předmět:	Economics and Econometrics Market economy business.industry Cash media_common.quotation_subject Economics Production (economics) Current account business Speculation General Business Management and Accounting Outsourcing media_common
Zdroj:	Journal of Economic Issues. 44:449-458
ISSN:	1946-326X 0021-3624
DOI:	10.2753/jei0021-3624440217
Popis:	The present paper explores the relationship between corporations' ability to generate free cash, the lopsided current account, and recent speculation in stocks and housing. It argues that some portion of recently generated free cash is related to the outsourcing of production. Over the last two decades, foreign saving, consequent on the lopsided U.S. current account could not be absorbed by a corporate world beset by its own plethora of saving. Consequently, excess saving, both domestically grown and imported flowed toward speculative avenues — in the 1990s in stocks and more recently in housing.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::366eeaa032a1462c7dad80149b9578aa https://doi.org/10.2753/jei0021-3624440217 Zobrazit plný text záznamu Plný text ve formátu PDF