Balance of Payments Issues in Australia (1 Viewer)

[kennyx88]

The topic is "Balance of payments issues in the Australian economy and current government economic policies to manage these issues."
Hmmm any comments made on the topic would be appreciated =D
Also I've read of of the balance of payments chapters, however I have not read in depth with respect to BOPS issues, let alone identifying economic policies in response.
Therefore any help would be appreciated guys= =) thnx

 

[TheGreatest99.95]

Yeah this question is more about Topics 3 (external stability) and Topic 4 which is on policies. Considering you haven't read these, it could be difficult to write on

 

[deswa1]

What exactly are you asking sorry? Do you just want small pointers or more detailed stuff?

For example- one major issue in Australia's BOP is the fact that we've run a CAD for a ridiculous amount of time now. Is this an issue? Maybe, maybe not. Look at things like the Pitchford Thesis, look at arguments for and against running a C.A.D, look at its implications on Australia's economic performance and how the international community perceives the issue. Currently, the Aust. govt. doesn't consider the CAD to be a major threat (look at why not) so there aren't many major policies designed to only target the CAD but it is indirectly targetted through things that attempt to lower our investment savings gap for example (there are other things you can target-> look at the structure of the CAD and ask yourself how you would improve each section). For the savings investment gap (which would improve net primary income, the implementation of superannuation for example increases national savings, lowering our need to draw on foreign funds)