Does the United States benefit from low interest rates? If so, how? We will explore this question using data provided by the Bureau of Economic Analysis. Go to U.S. Bureau of Economic Analysis to access the full dataset.
To access the data:
1. Go to U.S. Bureau of Economic Analysis and select “Interactive Data.”
2. On the right side of the page, select “Int'l transactions, services, and IIP” and then “Begin using the data…” on the next page.
3. For the first table, select “International transactions (ITA)” and then select “Table 1.1. U.S. International Transactions.” Next, select “Modify,” select “All Years,” “Annual,” and then refresh the table.
4. For the second table, select “International investment position (IIP)” and then select “Table 1.3. Change in the Yearend U.S. Net International Investment Position.” Next, select “Modify,” select “All Years,” and then refresh the table.
a. Complete the table using Table 1.1. U.S. International Transactions for Investment Income Earned / Paid and Table 1.3. Change in the Yearend U.S. Net International Investment Position for external assets/liabilities.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| Investment Income Earned on External Assets | AZwbtHE3u9jk3msHE9eM021/NaDpPKX+t72r+L0jAFugykPewo5mY/REJR/NI18aX/M8fGRw29Uhef86S5PufJ/EBH9U/ST4aVmfUH6cvUbHleu/eQmh4dR4vwTDHswogTdOUmhLR0JLgUM7+9ZaSVWybzSELajml8B5Lp9KCeb4NRgsOgCZ+/cpQhpTSAdILJF5UnOw4zY= | gAV3wzYnXMbxos727sTPKy9t9YylSKyL++zMIlqriE9fxDWasOUEFPW2izgMPm1/n7sWP1qi1TDoKru1UM5RMrzCLeRp63iWRAgUu5L7CJLnc0mE9biDRXZFp4kO2Gyg0S43ni2QhrwfpoMx6XOYfPxmA+DTb0zB1YTO8FLrBEEkDjSgmpfXDmORy1oX8Ov3qvBWgILVjZ0= | j3e3kn+rYGSbsTy3Bt+LCMvTANRgn64/Hmk7s3zzOxOIsiP/btseFNbB3nlVfCWItnuvcP5fWunEWbkKjfdwQnQOfn0wbITbaZKglmAqCA473DNBIc8EYpVR9HccebbWhn9L2sC90yrUg0Jv7fEzZjYbJHSUW4xHUcsdWdptYkl2fwGNCfAtwPcvO22QI9ALGxDs/RMY1n4= |
| Investment Income Paid on External Liabilities | zcXy+T2JkUkeMZSSldRW+NB0vF3RLsFYnKVtoY6SKGsbnVWJpHPSHJi0uY4mixs3CYsoOwXMHsKVg198cyi79EhG277yEafRvWNxMRaxQ2yVPuNa70sDmkzy2qjRnRQN1hU8tYJKV5taCbqsCimSj+1T9HqwicCWpJ9pl4lg2A+/WBq44544idA0JRMG1JiWs0IAEg== | RNrXbtodz8nZrm+Jz+5IraR4lQ6D9tdq4fXL+YN2/Bl2hCZAvd4luUMhFF13IXFsVgdA5pWuS8Db5BsUqKfgI87u6uyZ9zN8atCak5gqy02oWf7VyP1LzOkJP4h8xYv2HdzfeA6XhtlF21UK//YfH8g3YXBXV8R+KhkLfWiXMttrtizi2wWz+N3cLywQYvmPRMZbFQ== | Kk6D8RnePno7O/Fg9WaEZWR2m+6hDe6VPq4jdLe4soZLEtEk+VIs2n6t326MxvKjCLZOQw7VwLg8EYmPnib1q1U4EQYP9RjZlJ1iJvWOtbudwWStAzubJO6b8zoMsJy0mSYzmFAWOiBQqPUmBMC3Li6FOo5u83AcDkSoOrKtQWZBD3qlZ5vLOfcy3T+uNYlHU2pgxg== |
| External Assets, Excluding Financial Derivatives (previous year) | vZJsetKs9W/F+8e0N02SWEVRIp2ZspOSpRaP2s+5FCIdPyKeTatSZ4i9JF3sFSw5nRUoicStPrqLIQY+3skwtC7a5wiQCiEkvNb+GbwolA5eH/HwvLcV/ft/bQuedJ37aQ1NmJHWNgN/zB8beBM7T3cMTyogpRqvtjvmdBk8I0QLPa6MeSE+QrWHpp7TEj3Xco5pW6605Es= | lfWrSaeff3/ykEzNCjbfp/AA3OIVP7H9AWD9g7uzqwy+ZECUUKvNtixubU89OWYLkrjAAZgbcm4Wj1CrX5zyPN96Y69CFcRw7gASlPZI7CBuLXGh9XTVU4y1HvG0ZBGy05szLa/kkX5KmFFR+1w7mAhpcutJQIQrS0uZSqeN4BzjFB8b6Alu0cQqDgx3QfYpYWrkqJMtbLs= | mIDWjzlgoo7p4p3zWZCEv56JHBRYxlaDHHVX96JajPYh7nCP0W/XhtucnCn9inKSPRcFeBvlx4SZt0pumXubyjxANEZ4Zt7eYAlsofcnBPQm+Wr/i+31/Xin3R748dCUCbfFAbt6oQmukWQyMUHpC9JHgHpJI8AXcN7e0Wfp59pSF8seOWMfEDFpApu8OPfov08G0/BsIq8= |
| External Liabilities, Excluding Financial Derivatives (previous year) | TSj0M37ewXWAbuYtUg6RRNNc82RMj5al2faSPI2PN36vv5pV24SKPsxi71FukQFqXjvkmNkgrxmeTJ2/o6hlzz0z4tg9Ed/iBtob5jGKJZZf1xYf8+1BDd+1jzhlnb6EGmzfZBQlbVF5Ic1OBJyYxbxI4SL4AYnXXfp1d57jOobfuZv8R+4fAcvMiVxynE/LivZ6mWuao5s= | uNMAIclLcnpAaEAyU9Oa8KDeXFREnJ44yEHkQiepsvLknkitNj3CqlSBMD79dE8gtnm5/dQz6D/HyWEd0hXUS/CMBMJ5FM5b8l3Y9EKRYMrj/ip8pJi34wfpq9WEI3A2efnM+8aY6KoP3WKrP4LtED4arrJfSMPu/CvKmF6Di5WJ0rNlVsh8Ur7LG9/4r0ji9cBfNLP4vqc= | 3PjYdluCFcI85Qq3SUNUASoAwipF1ClfkWtmRWffkr3KN7tFL9ofvKeDNv1p7tY0PQ0VK8SR1vsPF2E+5Y0yTM5VAGFWXM3rayIfkg5uqEW7fTIrjRn1F+ZKc6HHcopM+hp2P2gbMcHNHUQ0tMIkKe7p+8Y5VWCZ5G5jtdmZn4bL/vlEDCDiQ4j2pjGR7jUZoj0x3cx6+jY= |
b. Using the data from part (a), calculate the implied interest rate on external assets and liabilities to four decimal places (e.g., enter .0325 for 3.25%). The implied interest rate can be found by dividing income earned in one year by the value of the assets in the previous year.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| Implied Rates of Interest on External Assets | zRsG4dFdPkN75+56hd4ecGLx+VQ8l9jEzGG0pUTKcWnELsYAAo6OZyp5MWiS5odGHKISGddX5o2nfO5LvamkSTMDy8m2BBfZiLmPAPmSzsgnC+XeANPsayNUDnZlfkyEDjfaenUUuqI= | rMAQQng9VTW5Pm23MdF8xllIb6OOb4QL05VhjG36nXHO4O9htOiMmRirwQHdvvvzYa7uFKei8R03bR9NbjfLKOhFLIAe3JGI/lRSzuj/qPfaqQz584sOOr4w7f5EcSRTOSbq2eNu4ps= | bSv4ywo6gWBrckMqV0/9FEowJEotNUcUhTjiCuUXTC9joLHoh7yV0aGEMvuQTuoE9vjV53yG06N4SZKjWHc8lvLwSEzg6nhjRgIAY99MeGnyhJbhZEerI3JN+5ox/qAo9OiXk71Wu5U= |
| Implied Rates of Interest on External Liabilities | joTbJ4yGpy6H8/8Og0EIlh4npA5vve9frnZET+0NemfiJyNO1qq9QGs1CfNKEFk3I0zVPulk3HTTfWGdnyEzoCPLMq79goDq7OfD7elrSM97pextKy2hOBGv9IF4lkLDyakmbF/X7Uw= | SLka/3l+jH+WMIgXaW9BxUWzqfCC1H3k6ZnwlbeLergzIUofwVLKvtTIaE8YE+ET1c/ogQ5O0dk9NJ/w0nOnFpwVBmbn9Vu0ybHDm4bxsz1TGW76H8+KKbzgCvYkKgY5Z05pH3pV80Y= | OKTjf4v0ASfi+GMic5avyoOt1jJile2sHQ3yHXYrC/8Qb6l2xSFivBCFcPRlDs+xxH6FfWsJHk6Ogv881UVlstrpYdQjYdZp4HkytDqpOEwMnOwj9MQgu9HZo5QDzSQ7BkK0/8E9UQ4= |