The interaction between US foreign debt and current account

This paper tests the relationship between the current account deficits and NIIP(net international investment position) in U.S. It discovers that, in the middle of 1980´s, trade is issue channel of dollar and finance is its withdrawal channel. Dollar circumfluence exists and largely depends on the sustainability of dollar standard. It is suggested that the dollar standard should sustain in a short period of time, but not for long.