The U.S. current account deficit narrowed noticeably in 2001. Both imports and exports of goods and services fell … counterpart of a net inflow of foreign capital that represents a source of saving (of more than $400 billion) to help finance U ….S. domestic investment. To finance the U.S. current account deficit, net private capital flowed in at a record pace in 2001 and …

1997 caused U.S. exports to drop sharply in the first half of 1998. Robust U.S. domestic demand was largely responsible for …

and services faster than exports increased. To a lesser extent, a decline in U.S. price competitiveness also contributed … and portfolio investment by U.S. residents. To finance the current account deficit and the capital outflow, the foreign …