Australia's Foreign Debt: 1975 to 1985

Peter Dixon and Daina McDonald

Australian Economic Review, 1986, vol. 19, issue 2, 22-37

Abstract: This article analyses Australia's debt accumulation since 1975 and comments on possible future paths of adjustment. In Section 2 we derive a formula describing the dynamics of debt accumulation. In Section 3 we apply the formula with Australian data for the period 1975 to 1985. A detailed analysis of developments in Australia's goods and services account is provided. Section 4 presents concluding remarks and reviews policy options available to Australia in the light of its external economic position. The article includes two appendices. The first contains some forecasts for the next year of developments In Australia's external accounts. The second gives data details and sets out the algebra underlying various computations in the article.

Date: 1986
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