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Is the Current Account Deficit Sustainable?

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Author Info
A. J. Makin

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Abstract

This article argues that Australia's savings behaviour relative to its investment opportunities ensures a structural current account deficit which is fundamentally sustainable. In fact considerable scope seems to exist for it to widen further, irrespective of fiscal tightening that has occurred during the last few years, without alarming macroeconomic consequences. Copyright 1989 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8462.1989.tb00322.x
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Publisher Info
Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal Australian Economic Review.

Volume (Year): 22 (1989)
Issue (Month): 2 ()
Pages: 29-33
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Handle: RePEc:bla:ausecr:v:22:y:1989:i:2:p:29-33

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  1. Neil Dias Karunaratne, 2008. "The Polemics and Empirics of the Sustainability of Australia’s Current Account Deficit - Revisited," Discussion Papers Series 364, School of Economics, University of Queensland, Australia. [Downloadable!]
  2. Cuddington, John T., 1997. "Analyzing the sustainability of fiscal deficitsin developing countries," Policy Research Working Paper Series 1784, The World Bank. [Downloadable!]
  3. John T. Cuddington, 1997. "Analysing the Sustainability of Fiscal Deficits in Developing Countries," International Finance 9706001, EconWPA. [Downloadable!]
  4. Allan P. Layton & Tony Makin, 1993. "Estimates Of The Macroeconomic Impact Of Foreign Investment In Australia," International Economic Journal, Korean International Economic Association, vol. 7(4), pages 35-42, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-18.

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