Define 'external stability' in a single, concise sentence. (1 Viewer)

[sida1049]

I think I get the gist of what external stability is; it is a policy goal of governments to foster growth and other economic obligations without excessive financial volatility.

But the definitions I find from textbooks and internet tend to be highly convoluted, broad and somewhat wishy-washy.

Here's the definition from Dixon and O'Mahony's textbook:
"External stability is an aim of government policy that seeks to promote sustainability on the external accounts so that Australia can service its foreign liabilities in the medium to long run and avoid currency volatility.

And, that is a full 45-word sentence, which I would avoid at all costs.

Here's another one from a past paper:
"[External stability is] The ability of a nation in the long term to meet its financial obligations deriving from its trade with the rest of the world."

My problem with this definition is the second half; I mean I get it, debt and investment are concepts which arise out of the basic economic activity of trading, but I feel queer in using this definition.

Here's another one from Business Dictionary:
"[External stability is] A term used to describe the financial system of a nation that displays only minor fluctuations in output growth and exhibits a consistently low inflation rate."

This one is alright, except it becomes quite specific and throws in inflation, which other definitions don't seem to do.

Finally, here's Wikipedia:
"External stability refers to the absence of excessive fluctuations in the macroeconomy."

Brilliant definition, but it seems awfully short and broad (and not sure if that's something markers would award).

So there lies my dilemma.

How would you guys define external stability in one sentence, that works for you?

 

[sy37]

External stability refers to having sustainable external accounts such that foreign liabilities can be serviced in both the medium and long term, as well as to avoid currency volatility.

 

[sida1049]

External stability refers to having sustainable external accounts such that foreign liabilities can be serviced in both the medium and long term, as well as to avoid currency volatility.

wud plagiarise/10

 

[sy37]

wud plagiarise/10

Hmm, sure. But only if you fix that Nietzsche image in your signature because it makes me chuckle every time.

 

[sida1049]

Hmm, sure. But only if you fix that Nietzsche image in your signature because it makes me chuckle every time.

Just for you, I did

But now the congestion is making my OCD senses tingle.

 

[Cleavage]

external stability is a goal in which an economy can achieve its economic goals, such as economics growth and price stability, through the management of its external obligations.