external stability essay ==> capital and finance account (1 Viewer)

[sk8ie_boi]

What kinda things do I talk about relating to capital and finance account in an external stability essay? .. I mean, you can talk alot about the current account etc ..

Also .. is acheiving external balance same as achieving balance of payments?

 

[Haku]

balance of payments is when CA=CFC + errors and omissions

mainly what external stability refers to is keeping CAD low, below 6%, and lowering of foreign debt. But u got to take into consideration that the govt aim is only to reduce public sector debt while the private loss are just bad luck.

and talk about the relationship between CAD and CFC surplus and vice versa.

 

[know_it_all]

external balance is when the CAD, f/liabilities and the AUD are at sustainable levels