Australia's Current Account Deficit, National Savings and Industry Policy

Neil Hart and Andrew Marks

The Economic and Labour Relations Review, 1999, vol. 10, issue 2, 278-295

Abstract: The argument that there exist a causal link between national savings and current account deficits is often simplistically formulated in terms of national income accounting identities. However the validity of formulating national saving-argmenting policies to target current account deficits is open to much debate when the possible theoretical linkages between these aggregates are investigated more closely. In particular; if the adjustment mechanism to external balance is expenditure driven rather than relying on exchange rate induced relative price changes, the alternative case of interventionist policy to promote net exports is strengthened. Theoretical arguments opposing the use of interventionist trade policies are often derived form inappropriately constructed, or simplistically interpreted, economic models.

Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/103530469901000208 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ecolab:v:10:y:1999:i:2:p:278-295

DOI: 10.1177/103530469901000208

Access Statistics for this article

More articles in The Economic and Labour Relations Review
Bibliographic data for series maintained by SAGE Publications ().