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One of the largest foreign portfolio investments in the United States comes from:
High Inflation
A situation where prices for goods and services rise rapidly over a period, eroding purchasing power and potentially destabilizing the economy.
Crowding-Out Effect
Large federal budget deficits are financed by Treasury borrowing, which then crowds private borrowers out of financial markets and drives up interest rates.
Full Employment
A situation in which all available labor resources are being used in the most economically efficient way, minimizing unemployment to only frictional or structural levels.
Serious Recession
A significant period of economic decline across the economy that lasts more than a few months, typically evident in real GDP, real income, employment, industrial production, and wholesale-retail sales.
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