External stability?
Topics for discussion:
Trade outcomes
- import and export bases, (direction, product and flow) impacting on the goods balance of the CAD
- structural change through microeconomic policy leading to increased productivity to increase relative imports to exports; trade reform, labour market reform etc.
- effect of microeconocmic reforms on international competitivness and their effect on eco growth, inflation and unemployment
- macroeconomic policy used to curb domestic growth and therefore decrease consumer purchasing leading to smaller good balance
Effects of CAD
- Constraints of debt and foreign liabilites (growth cannot outstrip liabilites)
- Shift from net foreign debt to net foreign liabilites
- DIAGRAM - net debt cycle from borrowings to finance CAD's
Fingers are sore from typing. Im sure you get the idea.