Examples are provided for reference which might be helpful…

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Brief Background :
The net foreign asset (NFA) position of a country measures its wealth: It is the value of the assets that a country owns abroad, minus the value of the domestic assets owned by foreigners. The current account records the value of exports and imports as well as international transfers of capital. A country can accumulate net foreign assets by running current account surpluses, e.g. by exporting more than it imports. In an influential paper, Gourinchas and Rey (2007) show that the U.S. NFA position has been quite stable despite persistent current account deficits. They show that this is driven by U.S. residents earning high returns on their foreign assets, whereas foreign residents earning low returns on U.S. assets. Recently, Atkeson et al. (2022) demonstrate that, after the Great Recession, this “exorbitant privilege” of the U.S. dollar has disappeared.
This project aims to replicate the analysis in Atkeson et al. (2022) and apply it to other countries. If the U.S. has lost its privilege, some other country must have gained it. The first part of this project is therefore data-driven and describes what parts of the current account and net foreign asset positions are driving the dynamics observed in the data. The second part discusses possible reasons and macroeconomic consequences of these trends with references to hypotheses and explanations brought forward by the literature.
Data on net foreign asset positions and its components is not always available for all countries. Hence, the student might focus on a subset of countries and choose one country or a specific time period as a case study. For instance, Japan might be a particularly interesting case Periods of interest could be the lost decade, the Covid crisis, and so on.
you, therefore, propose a specific research question from a given topic along with methodology and motivation for coming up with a specific research question and expectation using the template provided. Examples are provided for reference which might be helpful…

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