Number: RL30514
Title: GLOBAL CAPITAL MARKET INTEGRATION: IMPLICATIONS FOR U.S. ECONOMIC PERFORMANCE
Authors: Craig K. Elwell, Government and Finance Division 
Abstract: This report examines the dimensions and economic impact on the United States of the huge growth in recent decades of cross-border flows of assets. International asset flows can bring significant economic benefit as economies are able to improve the allocation of investment and saving, lower the level of risk in their asset portfolios, and enhance the performance of monetary policy. There are concerns, however, with the ability of international asset markets to convey economic shocks and initiate periodic economic crisis. The United States has been able to absorb large asset flows to apparent economic advantage, with a minimum of disruption.
Pages: 14
Date: Updated January 12, 2001