From around 20 per cent in 1980, it rose to around 50 per cent by 1995. It then flattened out for a decade, but in recent years the further increase in net capital inflow has seen the foreign debt ratio rise again (Graph 8). Expressing foreign liabilities relative to GDP is, perhaps, the most common way in which people analyse them.
As we indicated in the policy statement released last week, my FOMC colleagues and I expect to maintain an accommodative stance of monetary policy until employment and inflation achieve levels consistent with our maximum employment and inflation goals. At this point, the economy is still a long way from those goals.