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Monday, August 28, 2017

Corporate profits with inventory valuation and capital consumption adjustments: Rest of the world

The following chart shows the relationship between movements of dollar and U.S. corporate profits from rest of the world. They move opposite direction. 


The profits of U.S. corporates from rest of the world had been increasing tremendously, but staying flat lately. 


However, the growth rates of U.S. corporate profits from rest of the world had been slow down. It actually decreased from 2014 to 2016 when the Fed began to tighten the monetary policy.
The following chart shows the portion of U.S. corporate profits from rest of world in total U.S. corporate profits and it is growing which indicates the profits of U.S. corporates depend on more other countries.


Source: https://fred.stlouisfed.org/series/B394RC1Q027SBEA

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