J curve theory (1 Viewer)

[espo14]

hey guys,
whats the basic proposition of the J curve theory? cant seem to find the answer in my book..
thanks

 

[~dEjA vOuX~]

Do you have the first Bulmer book? I think it goes into detail about it in there...

 

[espo14]

nah my mate has my bulmer so im struggling with riley..

 

[espo14]

anyone??

 

[espo14]

ok thanks guys

 

[espo14]

k thanks alot mate!

 

[George W. Bush]

J curve is no longer valid

 

[Melz]

why do you say the j-curve is no longer valid?

 

[Nick]

Keating thought that the J curve would solve australia's economic problems in the 1980s.. it didnt work.

wouldnt say its "no longer valid". It seems good in theory, just didnt work in practice.

 

[espo14]

yeah but its still in the sylabus yeah?

 

[George W. Bush]

J curve is no longer valid due to growth in Australian equity abroad. Increases in O/S Debt and debt serving from AUD depriciation is cancelled out by rise in our O/S Equity and increased returns from these overseas investments so Net Foreign Liabilities and Net Income is largely unchanged e.g. despite a 20% deprication of the AUD over 97-98, Net O/S Debt and Net Income actually fell slightly.


I don't think J curve is still in the syllabus.

 

[olay]

ermm. :S this forum always gives me the feeling i've been sleeping through all my economics lessons. so. the fact that the J curve is infact invalid would be a handy piece of information. but its still in my text book - we were discussing it today???? and my teacher said nothing about it not working in practise.

 

[George W. Bush]

"Most teachers don't know anything that's not in Dixon's book"