Table : TABLE 20-7 A Hypothetical Example of Effects of Increased Capital Inflows
European purchases of U.S. dollars (trillions of U.S. dollars) To buy U.S. goods and services: 0.75 (down 0.25) To buy U.S. assets: 1.5 (up 0.5) Total purchases of U.S. dollars: 2.25
U.S. sales of U.S. dollars (trillions of U.S. dollars) To buy European goods and services: 1.75 (up 0.25) To buy European assets: 0.5 (no change) Total sales of U.S. dollars: 2.25
U.S. balance of payments on current account: −1.0 (down 0.5) U.S. balance of payments on financial account: +1.0 (up 0.5)