ext stability (1 Viewer)

[me]

hey guys i just wanna check out what every1's definition for ext stability is. here's mine:
ext stability refers to the situation when australia's dealings with the rest of the world are in equilibrium as measured by.. etc ect.
but i was wondering, is it really IN EQUILIB.?

 

[sif not 99]

my definition is

external stability is an aim of govt policy which seeks to promote sustainability on the external accounts so that Australia can service its foreign liabilities in the medium to long term and avoid external financial or currency crisis.

 

[Sarah]

A situations where external indicators such as the CAD, foreign liabilities and the exchange rate are at a sustainable level where they can remain in the longer term without negative economic consequences.

that's my definition but it might be a bit too long

 

[kaseita]

Originally posted by me
hey guys i just wanna check out what every1's definition for ext stability is. here's mine:
ext stability refers to the situation when australia's dealings with the rest of the world are in equilibrium as measured by.. etc ect.
but i was wondering, is it really IN EQUILIB.?

no, its not in equilibrium. If a country is able sustain a situation where its able to keep its exchange rate stable, and is able to satisfy the costs from imports, through its exports (goods, services, financial), then its in external stability, even when if its exports are making large profits.

I like a combination of sif's and sarah's personally, for a detailed response.

 

[spice girl]

Mine is: External stability is a sustainable CAD and stable exchange rate.