Two ways in which CAD can be financed? (1 Viewer)

[enigma_1]

One is from current account surplus countries like Japan but is there another way of financing it? cheers

 

[MadLife]

In Australia's case, the commodities boom that has been complimented by our geographical proximity to major emerging economies in the South-East Asian region has contributed to an increase in export-revenues leading to an improvement in our CAD, this has enabled the sustainability of our CAD. Hence, indirectly through macroeconomic policies concerning our international transactions, Australia can monitor and implement policies and procedures that 'finance' the CAD.