@article {32197, title = {Negative Net Foreign Assest Positions and Stability in a World Portfolio Balance Model}, journal = {Journal of International Economics}, volume = {13}, year = {1982}, note = {{\textcopyright} Copyright Elsevier Science. Posted with permission. One copy may be printed for individual use only.}, pages = {85-104}, abstract = {Negative net foreign asset and positions have been associated with a troublesome stability problem in flexible exchange rate regimes. In this paper, a symmetrically-specified, two-country, portfolio balance model is employed to provide some perspective on this problem. It is concluded that negative negative net foreign asset positions do not constitute an independent source of instability. Instability can arise only under nonrational expectations or because of destabilizing speculation.}, author = {Dale Henderson and Kenneth Rogoff} }