- more volatile exchange rates, because with persistent CAD's, investors may lose confidence in australia, and stop investing causing a depreciation of the $A. then imports will become more expensive, although our exports will be more international competitive as they are cheaper for other countries, which should improve our CAD. (BOG's)
-Growth of foriegn liabilities
- Increased servicing costs (to servicing foreign debt). then you can expand into the debt-servicing ratio, i can't remember exact statistics. Even maybe talk about the debt trap scenerio.
-CAD acts as a speed limit on economic growth.
