Essays Tagged: "current account deficit"

Why the balance of payments and the current account deficit are so important.

y give an explanation for, as an example, why the value of the Australian dollar has appreciated. A current account deficit occurs when the current account does not balance but is negative. The reason ... the capital account of the balance of payments has always caused Australia to run a deficit on the current account.The balance of payments may give reasons for economic occurrences. As an example, if ...

(4 pages) 164 0 5.0 Jun/2003

Subjects: Social Science Essays > Economics

External Balance defining the problem, policy implemented to deal with the problem of external stability.

s well as international factors. The problem associated with the balance of payments is the growing current account deficit (CAD). Over a period of time a high CAD will contribute to an increased leve ... b that if the CAD is above 6% of GDP there is a problem. It is a problem because any outflow in the current account must be matched by an equivalent inflow in the capital and financial account. Thereb ...

(4 pages) 102 0 4.3 Aug/2003

Subjects: Businesss Research Papers

The causes of current account deficit.

The causes of current account deficitAustralia's CAD will be one of the entering years biggest economic stories in ... ost been deficit the past twenty yeas the level of the deficit has increased notably. In 1970's the current account gap has concerning 2.5 percent GDP.Australia has usually run a current account s def ... he CAD.Australian's needs to spend more on investment and all Australian's save is the cause of the current account deficit. The investment projects have created jobs, increased living standard for al ...

(4 pages) 174 0 5.0 Aug/2003

Subjects: Social Science Essays > Economics > Economic History

SPAIN - Currently in the midst of a century long economic golden age?

ent into recession, during this period with its GDP falling 1.4% (appendix 4). Nonetheless, Spain's current account deficit has remained a matter of concern (2.9% of GDP in 1991). The State deficit wa ... uthorities and assorted social agents increased the deterioration of the balance of payments on the current account, brought about by the rising imports which the economy continued to support. This de ...

(12 pages) 66 0 5.0 May/2004

Subjects: Social Science Essays > Economics > Foreign & International Economics

Does Australia have a current account deficit?

IntroductionThe balance of payments current account is one of popular indicators of a country's economic health. "Current account defici ... services, investment income, and unilateral transfer (Carbaugh, 2002, p.350)."Although Australia's current account deficit has exceeded about 3 percent of GDP for about 20 consecutive years (Sighvats ... 3 percent of GDP for about 20 consecutive years (Sighvatsson, 2001), there has not been that a big current account deficit problem. Mexico had a current account deficit which became a big problem to ...

(14 pages) 107 0 4.0 May/2004

Subjects: Businesss Research Papers > Accounting

Austrlia - Balance of Payments and the pressure on the dollar

IntroductionIn 1995, The Economist ran an article comparing the current account deficit in Australia at the time to that of Mexico just before the Mexican Peso's de ... at the time to that of Mexico just before the Mexican Peso's devaluation in 1994. At the time, the current account deficit in Australia was 5% of gross domestic product (GDP). Over the next five year ... s, the comparison proved itself to be accurate as the Australian dollar lost over 40% of its value. Currently, there are signs that an even larger problem is looming on their financial horizon. The sa ...

(3 pages) 74 0 5.0 Jun/2004

Subjects: Businesss Research Papers > Markets & Exchanges

Australian business cycle and the macroeconomic environment

e reasons for this will be discussed below. Lastly an adverse side of the Australian economy is the current account deficit, which reached a new of 7.1% in the 1st quarter of 2005 (ABS, 2005), quotes ... sufficiently to sustain the upswing'. Business confidence remains high, however the instability of current oil prices may be influential within the long run, with businesses passing on costs to the c ...

(10 pages) 114 0 5.0 Mar/2006

Subjects: Social Science Essays > Economics

Current Account Deficit in Australia - Causes, effects & recent trends (PLAN)

Since mid 1980's, Australia has been experiencing persistently large current account deficitsThe current account deficit (CAD) represents the excess of debits in the cur ... given Australia one of the highest CAD outcomes amongst advanced economiesSince the mid 1980's the current account has been a deficit, ranging from 3-6% of GDP over the past decade, resulting from a ... economy, in particular its export base, has had a significant impact on the inflow of funds on the current accountAustralia's exports are heavily weighted towards primary industry commodities, with a ...

(2 pages) 30 0 0.0 May/2006

Subjects: Social Science Essays > Economics

The Balance of Bayments and CAD

our answer discuss the main components of Australia's CAD and the factors affecting the size of the current account deficit over time (20 Marks)The current account shows all the transactions involved ... rts of goods, services, incomes and transfers. Over the last decade, Australia has had a persistent Current Account Deficit, meaning that Australia has imported more goods, and services than it has ex ...

(3 pages) 36 0 3.0 Aug/2006

Subjects: Social Science Essays > Economics > Development Studies

Balance of Payments and International Monetary Assistance, A case study: Turkey

the world. The balance of payments can define why the value of the Turkish Lira was appreciated. A current account deficit occurs when the current account does not balance. The reason for Turkey to h ... urrent account deficit is great level of debts and credits on goods, services, incomes and returns. Current account deficit is also because of a greater part of our investment coming from other foreig ...

(13 pages) 63 0 2.5 Nov/2006

Subjects: Art Essays

Most of the economists argue that, due to serious Global Imbalances, a major realignment of world's major currencies must take place. Critically evaluate this point of view.

ecent pace except Global Account Imbalances reaching the levels that are unprecedented. On one side Current account deficit of US $665 billion in 2004 which move up to, $820 billion or you can take it ... n front of US dollar, causing America to buy goods from Asia very expensively. We can also consider current account deficit and low exchange rate in a way that Americans are using Asian's money to buy ...

(12 pages) 114 0 3.5 Feb/2007

Subjects: Social Science Essays > Economics

Mexico: Mexican crisis, 1994

currency devaluations, which prevented the country economically developing. Moreover,there was high current account deficit in the country. These economic events resulted inDomestic Debt Crisis in 198 ... xico.2. CAUSES OF CRISISThere are three main economic reasons of the crisis: exchange rate regimes, currentaccountdeficits and short-term capital inflows, and capital account liberalization andbanking ...

(12 pages) 63 0 0.0 Apr/2007

Subjects: Social Science Essays > Economics > Foreign & International Economics

Current State Of The Australian Economy

Part A Current International Trade Performance Australia's International Trade Performance has improved ove ... h side as housing, exports, and consumer spending has led Australia's steady trade performance. The Current Account Deficit has reduced substantially over the past months but will the Australian econo ... ears june figure of 105.0 points. (Refer to figure 1.5 below) Figure 1.5 The Balance on Australia's Current Account shows a decreasing deficit balance. The deficit peaked at its highest defacit in the ...

(5 pages) 30 0 0.0 Oct/2001

Subjects: Businesss Research Papers > Case Studies

Fiscal Policy SA- Budget Speech

include the anticipated lower global growth due to suppressed US growth, risks e.g. oil prices; US current account deficit amidst large surpluses amongst oil-producing countries. The main monetary ch ... upwards due to food and fuel - it remains within the target band (refer Annexure 11)•Widening current account deficit of nearly 6% of GDP has put pressure on the rand (refer Annexure 6 and 7)&bu ...

(14 pages) 62 0 0.0 Jan/2008

Subjects: Businesss Research Papers > Markets & Exchanges

Australian economy's performance is assessed based on the achievement of economic objectives through economic policies.

loyment), and External stability (stable exchange rate, a sustainable level of foreign debt and the current account deficit).The government implements an economic policy mix involving macroeconomic an ... in order to impact upon economic growth. The RBA can adjust its monetary policy stance to suit the current or expected economic situations. To reduce the severity of a recession the RBA can adopt a m ...

(5 pages) 2138 0 0.0 Nov/2009

Subjects: Social Science Essays > Economics > Foreign & International Economics